Industry News

Thyssenkrupp still producing at just 'over 60%'; steel JV talks ongoing

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Update time : 2020-08-13 22:11:25
German steelmaker Thyssenkrupp is still running at "over 60%" capacity utilization, reiterating that there is no update on a steel joint venture or sale while talks with undisclosed partners are on-going, CFO Klaus Keyberg said at a press call Aug. 13.
Thyssenkrupp remained vague on plans for the steel unit, only highlighting that the management would be talking to external partners. Keysberg also did not rule out a complete sale of the unit at during the call on the company's fiscal third-quarter (April-June) earnings.

"Following weeks of a great deal of speculation, there is still no comment today. We are in talks, keeping our options open," he said, responding to a question about Thyssenkrupp exiting the steel business entirely by saying: "the options are wide-ranging."

The sale of the Elevator unit late July has improved Thyssenkrupp's overall position, but Keysberg highlighted that the much needed cash injection of the sale worth Eur17.2 billion ($20.4 billion) would not last forever and that measures in steel in particular would be "rigorous."

"Maybe that is a difference to the past -- the measures are more detailed," CFO Klaus Keysberg said.

"We have performed worse than our peers, you have to admit that. Restructuring has been overdue, it should have happened earlier," Keysberg said.

Thyssenkrupp will carry on with its so-called "20-30" restructuring plan which entails staff cuts and investments to improve the product portfolio and quality.

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