Company News, 2011-05-05, 11:02 PM
The Executive Board decides the further strategic development of ThyssenKrupp
The Executive Board of ThyssenKrupp AG, in its extraordinary meeting today, has decided on extensive measures regarding the further strategic development of the Group. ThyssenKrupp will further strengthen its excellent engineering competences focusing on markets and customers. ThyssenKrupp will actively seize opportunities offered by global trends, especially in the emerging markets, in order to expand its current business scope. At the same time, net financial debt will be reduced.
As a key element of the new strategy going forward, ThyssenKrupp wants to focus the portfolio and discard business activities for which alternative strategic options are more suitable in order to strengthen the financial base of the Group and to provide additional flexibility for the expansion into strategically promising business activities.
For these reasons the Executive Board has decided today on measures to adopt the business portfolio which will be presented to the Supervisory Board for approval on May 13, 2011.
In addition to the current divestment processes of ThyssenKrupp Metal Forming, ThyssenKrupp Xervon and the implementation of the strategic partnership between Abu Dhabi Mar and ThyssenKrupp Marine Systems, the Executive Board would also like to propose to the Supervisory Board a stronger focus within the automotive business activities. Therefore, the following measures are to be implemented:
･ The divestment of ThyssenKrupp Waupaca within the context of a best owner process. Currently the company has sales of almost €900 million and around 3,000 employees. The company is the market leader in the area of iron casting in the USA.
･ The separation of ThyssenKrupp Tailored Blanks will also be carried out within the context of a best owner process. Tailored Blanks is system partner in the body and chassis manufacturing for the automotive industry and has sales of approx. €600 million and nearly 900 employees.
･ The bundling of the chassis business activities of the Bilstein Group and Presta Steering. The consolidation will result in one of the largest global Chassis-Full-Service-Providers with sales of around €2.2 billion and nearly 6,500 employees. In addition, all alternatives for the new company are to be investigated, including the option of strategic partnerships.
･ The traditional springs and stabilizers business activities as well as the Brazilian Automotive Systems business with joint sales of approx. €700 million and more than 3,000 employees should be divested at the same time within the context of a best owner process.
Additionally, the Executive Board has decided to focus the materials business activities and to support the further development of Stainless Global.
･ Separation of the activities of the Business Area Stainless Global. All options regarding the continuation of its business activities outside the Group are to be investigated. In the last fiscal year the Business Area achieved sales of €5.9 billion and had more than 11,000 employees. The separation from ThyssenKrupp will result in an independent European market and quality leader within the stainless steel industry, giving Stainless the opportunity to develop its competitive position with greater flexibility – also with regard to potential strategic partnerships. This will also result in more potential for additional structural improvements and cost savings.
Current and prospective divestments within the context of portfolio alignment agreed upon by the Executive Board approximate €10 billion and 35,000 employees – based on the previous fiscal year.
During the Press Conference following the Supervisory Board Meeting on May 13, 2011 at 2 p.m. ThyssenKrupp will report about the decisions made regarding the prospective strategic development. At 4 p.m. there will be a telephone conference for analysts and investors.