Thyssenkrupp specifies investment volume in steel
Thyssenkrupp has come up with tangible figures for the investments it intends to make in its steel operations.
The group plans to spend some €500 million ($542m) per year on a regular basis, plus an additional €800m over the next six years, Kallanish is told by chief financial officer Johannes Dietsch.
In recent years, the German conglomerate has invested €470m per year in its steel division. “The details of the spending are currently being worked out,” Dietsch adds. He emphasises that “…each operation needs to have a feasible business plan and needs to be profitable by itself, independent from others.”
The operation least likely to benefit from the blessing is plate production in Duisburg. Here, the group is looking at either a partnership, a sale, or a closure, Dietsch says.
In recent months, various figures were given by executives on different occasions, or reported in the press. Last year, after the merger plan with Tata Steel Europe was blocked by the European Commission, thyssenkrupp maintained it intends to strengthen its steel division, so that it sustains itself. Still, it does remain open to partnerships and consolidation, the firm has said repeatedly.
On the ousting of tk Steel ceo Premal Desai, Dietsch notes that Desai and the group in principle agreed on the goals of the steel division, but disagreed “…on the path leading there.” In the ongoing process of shaping a strategy for steel, Dietsch says the management is currently still negotiating with employee representatives. This point was also highlighted by Desai a week ago, when he was still ceo.
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Anonymous
Very good overview of the weekly steel market.
Anonymous