Capital market-relevant press releases, 2005-04-25, 12:23 PM
ThyssenKrupp Stahl to cut back production by 500,000 tons
In the 2nd quarter 2005, ThyssenKrupp Stahl AG will reduce its steel production by around 500,000 metric tons. This roughly 10 percent cutback will primarily affect hot-dip, electrolytic and organic coated materials. The impact on employment at the plants can be cushioned by using up credits in working time accounts. The reason for this step is the significant increase in imports, mainly to southern Europe, that occurred particularly around the turn of the year. At the same time, customer stocks were built up, partly due to the unusually long and hard winter which restricted construction activity in Europe. This put pressure on steel prices.
Dr. Jost A. Massenberg, ThyssenKrupp Stahl AG Executive Board member responsible for the Industry Division, said of the production cutback: "Our principle is price before quantity. It remains vital that revenues at least cover the cost increases on the raw material side. The extreme rises in ore and coking coal prices have exacerbated the situation, and we will have little choice other than to pass them on to our customers."