Company News Mar 11, 2014 7:30 AM
Materials Services stops disposal process for Railway/Construction activities
The Materials Services business area management board has decided to stop the disposal process for the Railway/Construction operating unit initiated in May 2013. Railway/Construction comprises the companies ThyssenKrupp GfT Gleistechnik (railway equipment) and ThyssenKrupp Bautechnik (construction equipment).
After an intensive exploratory phase, purchase bids have been reviewed and talks held with potential buyers over the past few weeks. None of the bids met the financial expectations of ThyssenKrupp.
Against this background the business area management board has decided to discontinue the railway equipment activities. This will result in part sales and closures of sites. The associated job cuts will affect altogether up to 260 employees.
Negatively impacted by the rail cartel and unprofitable, the railway equipment business has no growth prospects on the German market and is under extreme cost pressure. Dr. Klaus Keysberg, member of the Materials Services management board: "Unfortunately we see no realistic chance of the railway equipment business making a value-adding contribution to the Group's earnings in the long term."
Employees and codetermination bodies have been informed of the decision. The aim is to implement the personnel measures in a socially responsible way by the end of the 2014/2015 fiscal year. Talks on this are now being opened.
The profitable construction equipment operations will be continued within the Materials Services business area and repositioned following a business model analysis.
The decision is subject to the approval of the supervisory board of ThyssenKrupp Materials International GmbH.