Strategic realignment: thyssenkrupp as Group of Companies
We have a clear roadmap for the future. We are transforming thyssenkrupp into an international group of largely independent, efficient industrial and technology businesses.
The focus lies on industrial development and competitive financial results. With our products and services, we make an important contribution to a better and sustainable future. We combine a performance culture with entrepreneurial and social responsibility. That is why we decided on a comprehensive realignment of the company in May 2019 and further specified it in May 2020: At the heart of the strategy is the transformation of thyssenkrupp into a high-performance "Group of Companies" with a lean management model and a clearly structured portfolio. The reorganization as a "Group of Companies" was an important step towards a more decentralized organizational structure - still under the strong thyssenkrupp umbrella brand. The individual segments of the thyssenkrupp group are being given more entrepreneurial freedom and at the same time greater individual responsibility. The aim is to further increase market and customer proximity. Corporate Headquarters is focusing more strongly on portfolio management, governance tasks and on providing the businesses with the best possible support in achieving their goals.
This transformation is guided by three key themes: Performance, Portfolio and People.
Performance: How we work
We want to be among the best in our industry.
We will therefore continuously improve the performance and competitiveness of all our businesses. For each unit we have defined individual targets derived from the competition and backed them up with concrete measures to get there. We aim to return to positive free cash flow, ensure the Company’s long-term sustainability and achieve returns in our businesses on a level with those of our best competitors.
Portfolio: How we are structured
We focus on sustainable development.
We have therefore closely examined the individual development potential of thyssenkrupp's businesses. We assess each unit according to its current market and technology position as well as future value growth potential. Against this background we have divided thyssenkrupp's portfolio into three categories. The key question was in which constellation and ownership structure our businesses have the best future and development perspectives.
Continue to develop within the Group
Materials Services and Industrial Components (Bearings and Forged Technologies) have a strong market position and unchanged good development potential. We will continue to develop these businesses on its own in the future. At Automotive Technology, in line with the industry trend for collaboration, alliances and development partnerships are also conceivable on a selective basis.
For the businesses in this category we are examining - in addition to further development under our own steam - potential consolidation opportunities and partnerships.
At Marine Systems we have taken measures to enhance performance within the company and will further strengthen our positioning as a systems supplier. In addition we are also monitoring the national and European landscape of the marine industry with regard to possible consolidation, provided a partnership opens up economic prospects for us and has political support. In any case the company will continue to develop Marine Systems - also as a stand-alone - as a valuable business with promising potential.
In the Steel segment we are pulling out all the stops to improve performance by our own efforts. This is being achieved through a combination of targeted investments in the future and urgently needed restructuring measures which are being systematically implemented. The basis for this is the Steel Strategy 20-30. Ensuring the future viability of steel and thus giving employees a perspective is more important to us than the question of ownership.
In the Multi Tracks segment we have combined the businesses for the investment management of the Group going forward. This is where we have pooled our minority stake in our former Elevator business and Group companies for which we are seeking alternative ownership structures in the short to medium term. This could, for example, take the shape of a complete or partial divestment or continuing the business together with one or more external partners.
People: Who we are
We want to continuously improve.
In addition to the structural changes, the transformation of thyssenkrupp will also involve a new way of working together. We therefore not only changing the "hardware" of the Group, but also the "software" - in other words, procedures, processes and the culture of how we work and want to interact with each other. Our values form the foundation for this: We are committed to openness, mutual appreciation, and respect. We want to continuously improve and make the organization more agile and adaptable with a view to future challenges.
"engineering. tomorrow. together." remains our motivation; with our technological know-how and industrial expertise under a strong thyssenkrupp umbrella brand we aim to make an important contribution to a more livable and above all sustainable world.