Thyssenkrupp on Thursday unveiled plans to bundle its businesses with a green technology angle in one segment and launched a performance programme in a bid to reach its mid-term targets and regain trust among investors.
The move is the first major effort by CEO Miguel Lopez, who took over the helm in June, to revive the submarines-to-car parts group’s fortunes and languishing share price.
The conglomerate’s new Decarbon Technologies segment will launch Oct. 1 and comprise Thyssenkrupp’s stake in hydrogen firm Nucera, bearings maker Rothe Erde, ammonia unit Uhde and cement division Polysius.
As a result, the group’s Multi-Tracks division — set up under former Chief Executive Martina Merz to put all assets potentially up for disposal under one roof — will be dissolved.
The company also announced APEX, a programme to boost its overall operational performance which was hinted at during its third-quarter results last month, saying all divisions would identify additional measures to improve cash management.
The German industrial firm singled out material costs as one area where this might happen.
“The environment is far more challenging than could have been expected at the end of 2021. This refers not only to the war in Ukraine, but also – as a result – to the uncertain energy supply and high energy prices in Germany, continuing disrupted or fragile supply chains, as well as higher inflation worldwide and the significant rise in interest rates,” the group said.
“The performance program now serves to decisively close the gaps that have arisen as a result.”
Thyssenkrupp confirmed that its Steel Europe and Marine Systems segment were still intended to be spun off, a day after Germany said it was considering taking a stake in the latter division, which makes warships.
(Reporting by Christoph Steitz; Editing by Lisa Shumaker)