New Group structure
Faster, leaner, strategically more centralized, operationally more decentralized – that's ThyssenKrupp in its new organizational structure. As of October 01, 2009 the five previous segments have been replaced by eight business areas in two divisions combining our strengths and capabilities as a materials and technology group.
To strengthen the Group for the economic challenges in the years ahead, we introduced a new organizational structure effective October 01, 2009. A brief summary is provided in the section "Areas of business and organizational structure". In the following, we provide more details of the new Group structure with its key elements, objectives and advantages.
Eight business areas
The materials and technology activities of the five previous segments Steel, Stainless, Technologies, Elevator and Services are now organized in eight business areas. They integrate similar business models and geographically related business activities. The business areas are combined in two divisions – Materials and Technologies – reflecting ThyssenKrupp's key competency areas. Materials includes the business areas Steel Europe, Steel Americas, Stainless Global and Materials Services. It focuses our materials capabilities and services along the value chain – purchasing, production, sales and services. The Technologies division is made up of the business areas Elevator Technology, Plant Technology, Components Technology and Marine Systems and brings together our technological capabilities. For more on the activities and strategic strengths of the individual business areas, please turn to the section "Business management – goals and strategy"
ThyssenKrupp Group
Corporate Headquarters
The new Corporate Headquarters strengthens the strategic and steering role of the Group management and allows the business areas to concentrate on their operating business.
Further elements of the new Group structure
The following factors are also key elements of the new Group structure:
- In the new structure, ThyssenKrupp remains an integrated materials and technology group and a value-based conglomerate. Our diversified set-up represents an important competitive advantage which we intend to retain.
- In the future, operational management of the Group will be more decentralized and strategic management more centralized. The responsible business areas and operating units will be strengthened through their direct ties to ThyssenKrupp AG. They will move closer to the corporate center, as the previous segment holding companies have been eliminated. Fewer units and fewer levels will speed up and improve cooperation in the Group.
- The reorganization will facilitate a stronger focusing of business activity and leaner and more efficient structures which will allow us to operate closer to the market and implement operational and strategic measures more directly.
- Dividing the Steel segment into the business areas Steel Europe and Steel Americas will give the Executive Board more direct access to our major projects in Brazil and North America.
- The division of the Technologies segment into the business areas Plant Technology, Components Technology and Marine Systems will allow more direct management of these units.
- The business areas will be led by management boards which, in close consultation with the Executive Board of ThyssenKrupp AG, will be responsible for operational control and ongoing business development. This close link will allow more direct alignment with the overall interests of the Group.
ThyssenKrupp Business Services and ThyssenKrupp IT Services are the service units which from October 01, 2009 will provide one-stop services for the entire Group, i.e. Group companies, business areas and corporate headquarters. These services will include standardized processes such as areas of accounting and IT as well as payroll.
Greater transparency
Our new reporting structure with the eight business areas will greatly improve the external transparency of the overall Group. In the future the financial results of the eight business areas will also be reported externally. This will enable capital market players and interested third parties to better understand our activities and assess them more appropriately. The activities in our former Technologies segment are a good example: As figures for the individual business areas will now be reported separately, analysts, investors and the public will in the future receive detailed information on their business performance every quarter.
Sustainable reduction in administrative costs
The new Group structure will reduce administrative costs sustainably by up to €500 million a year. This is to be achieved over a period of two years. The savings are made up in roughly equal parts of material and personnel costs. For example, the Groupwide optimization of IT costs will lower our material costs. Our operating efficiency in the area of purchasing will improve significantly.
New corporate design
In parallel with the new organizational structure, the Group has also introduced a new corporate design. Ten years after the merger of Thyssen and Krupp, the logo and logotype have been combined in a compact, distinctive and attractive form. The Group's employees and companies will move closer together under a new logo that expresses unity and strength. We paid great attention to cost efficiency in the development and implementation of the new corporate design.
The new organizational structure increases the Group's effectiveness and efficiency, ensuring greater dynamism and flexibility with regard to customers and markets. Together we want to achieve the optimum for ThyssenKrupp, its stockholders and investors, its business partners and its employees.