The company's CEO, Miguel Lopez, stated that the goal is for the steel division to meet its future investment needs with its own earnings. However, he also emphasized that the parent company will support the steel division by providing financial security for the next two years.
Lopez's statement follows a warning from Sigmar Gabriel, chairman of Thyssenkrupp Steel Europe (TKSE), that the company must close a EUR 1.3 billion financing gap. Gabriel stated after the supervisory board meeting that the company must take serious steps to close this financial gap.
Thyssenkrupp's steel unit has been adversely affected by the recent decline in steel demand and prices. This has led the parent company to reduce its stake in the unit. Lopez noted that this challenging period is an opportunity for the steel unit to stand on its own two feet and that the ongoing transformation efforts are in line with this goal.
"The financing Steel Europe needs for the next 24 months will be provided by Thyssenkrupp AG. This announcement should put an end to speculation of bankruptcy; there has never been any such danger and there will not be any in the future."
The announcement comes on the heels of Czech billionaire Daniel Kretinsky's purchase of a 20% stake in TKSE last week and negotiations for a further 30% stake. Kretinsky's investment is likely to play an important role in the future transformation of the steel unit.
This strategic move by Thyssenkrupp is seen as an indication of the company's efforts to keep pace with the changing dynamics of the industry by emphasizing sustainability in steel production.
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