The company is currently negotiating with the Czech EPCG regarding a 50:50 share in the division
The German concern Thyssenkrupp announced a €1 billion impairment loss on the non-current assets of its steel division in the 2023/2024 financial year. The company cited a deteriorating outlook for the sector as weak demand and Asian competition hurt German industry. This was reported by Reuters.
The latest depreciation of metallurgical assets comes as the German company is negotiating with Czech billionaire Daniel Kretinsky’s EPCG energy holding to increase its stake in the unit to 50%.
According to Thyssenkrupp, EPCG may back out of the deal if negotiations on a 50:50 stake fail. The discussion now depends on the new business plan for the steel division, which is currently being developed.
In October of this year, Thyssenkrupp CFO Jens Schulte told Reuters that the company has a plan B and will seek talks with other steelmakers on possible partnerships and tie-ups if the deal does not go through.
The company also recalled that in October 2024, Steel Europe transferred its Indian electrical steel business to an Indo-Japanese joint venture for market and strategic reasons. The transaction is expected to close within the next few months. As noted, the sale proceeds of about €440 million are intended to strengthen the capital resources of the steel segment.
As for the main strategic issues, according to Thyssenkrupp CEO Miguel Lopez, the current fiscal year will be a year of decision-making, especially for Steel Europe and Marine Systems.
In total, the German conglomerate plans to generate a net profit of at least €100 million in fiscal year 2024/2025 (ending September 30, 2025), compared to a net loss of €1.4 billion in fiscal year 2023/2024. The company also forecasts an increase in operating profit despite rising costs due to increased investment and restructuring costs.
In August, it was reported that Salzgitter and Thyssenkrupp are seeking to sell their stakes in Hüttenwerke Krupp-Mannesmann, an integrated steel mill that specializes in the production of slabs and billets for pipe production.
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