The naval shipbuilding company TKMS is to be spun off from the Thyssenkrupp Group, with an IPO planned for later this year.
Other business units are also set to become independent in the future. While Thyssenkrupp refers to this as a “repositioning,” other voices are more critical.
Thyssenkrupp Marine Systems (TKMS), the naval division of the steel construction giant, is working at full capacity for the coming years. The shipyard group’s order backlog currently amounts to over €16 billion. The company’s future had long been uncertain, and TKMS had been put up for sale several times. Now, the spin-off from Thyssenkrupp is going ahead.
Thyssenkrupp spins off TKMS and other divisions
The rest of the company is also undergoing reorganization, with concrete plans now in place. In addition to TKMS, this affects Thyssenkrupp Steel Europe (a 50/50 joint venture with energy company EPG), Materials Services, and Automotive Technology. The Decarbon Technologies segment is also expected to follow, “once green technologies have gained momentum,” according to the company. These newly independent units are intended to allow for external investor participation. For Thyssenkrupp itself, the restructuring means a transformation into a holding company. The process will not begin immediately; according to the company, it could take several years. Except for the steel business, Thyssenkrupp will retain majority stakes in all its divisions.
“With the strategic realignment of Thyssenkrupp, we are resolutely continuing on our chosen course. The future independence of our current segments – with the advantage of their own capital market access and the possibility for third-party participation – will increase their entrepreneurial flexibility, strengthen their investment plans and profit responsibility, and improve transparency for investors,” said Miguel López, Chairman of the Executive Board of Thyssenkrupp AG. “Such a move will enable the full value creation potential of the businesses to be realized and their independence to be used in a targeted manner for investments, market opportunities, and further growth. At the same time, Thyssenkrupp AG retains control and will continue to participate in the future value development of the businesses.”
So far, there has been no mention of large-scale job cuts at Thyssenkrupp. However, it is already known that the head office will be downsized from 500 to 100 employees, and 1,000 jobs are to be cut in administration. The situation remains uncertain for the 96,000 employees worldwide. “The unrest among the workforce is extreme,” said Tekin Nasikkol, Chairman of the Works Council at Thyssenkrupp Steel. Information about the breakup of the group was obtained from the media. Several reports have described the strategy as a “break-up” that has been looming for some time.
