ThyssenKrupp CEO: We Want to Be a Part of European Steel Consolidation
04/15/2016 - If thyssenkrupp chief executive Heinrich Hiesinger had his druthers, the company would take part in a consolidation of Europe’s steel industry, perhaps getting together with Tata Steel’s European operation.
However, any such move is easier said than done, according to the Reuters news agency.
Reuters reported that although shareholders would like to see thyssenkrupp move away from making steel, any deal to do so would have to pass muster with the company’s works council, which represents approximately 28,000 workers. And they are not keen on seeing the company cut its steelmaking roots, Reuters said.
Reuters has the full story here.
Meanwhile, Tata Steel is continuing to look for a buyer for its U.K. strip operation, and it has brought aboard multinational banker Standard Chartered to help feel out potential buyers in Asia, particularly in China, according to 24-hour broadcaster Sky News.
The broadcaster said Chartered Standard has strong steel industry ties and a long-standing relationship with Tata Steel’s parent company.
But whether Tata is able to find a buyer remains in doubt. In fact, more plant closures and consolidations are likely in store for the European steel market, according to BloombergBusiness.
The news service said European steelmaker ran at 72 percent of their capacity in 2015.
“Nobody should really be surprised,” Wolfgang Eder, chief executive officer of Austria’s voestalpine AG, told Bloomberg. “We have to reduce European steel-making capacity because we are oversupplying the market.”
Reuters reported that although shareholders would like to see thyssenkrupp move away from making steel, any deal to do so would have to pass muster with the company’s works council, which represents approximately 28,000 workers. And they are not keen on seeing the company cut its steelmaking roots, Reuters said.
Reuters has the full story here.
Meanwhile, Tata Steel is continuing to look for a buyer for its U.K. strip operation, and it has brought aboard multinational banker Standard Chartered to help feel out potential buyers in Asia, particularly in China, according to 24-hour broadcaster Sky News.
The broadcaster said Chartered Standard has strong steel industry ties and a long-standing relationship with Tata Steel’s parent company.
But whether Tata is able to find a buyer remains in doubt. In fact, more plant closures and consolidations are likely in store for the European steel market, according to BloombergBusiness.
The news service said European steelmaker ran at 72 percent of their capacity in 2015.
“Nobody should really be surprised,” Wolfgang Eder, chief executive officer of Austria’s voestalpine AG, told Bloomberg. “We have to reduce European steel-making capacity because we are oversupplying the market.”
