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ThyssenKrupp Further Refines Plan for Strategic Reorganization
05/04/2009 - The ThyssenKrupp AG Executive Board has further developed the Group’s business model, moving toward a single company with eight business areas, all of which will be tied directly to ThyssenKrupp AG.
The ThyssenKrupp AG Executive Board has further developed the Group’s business model, moving toward a single company that is efficiently managed and steered by a strong corporate center. The future structure would incorporate eight business areas: Steel Europe, Steel Americas, Stainless Global, Materials Services, Elevator Technology, Plant Technology, Components Business and Marine Systems, all of which will be tied directly to ThyssenKrupp AG. The divisions as interim holding companies will no longer be needed.
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ThyssenKrupp has taken various measures over the past several months to provide a systematic and measured response to the crisis while continuing to secure liquidity and earnings.
The company said its focus has been on cost-cutting measures, which are being implemented under the Groupwide ThyssenKrupp PLuS program with a view to achieving savings of well over €1 billion in the current fiscal year.
In addition, ThyssenKrupp is improving its cash position by optimizing its net working capital and making adjustments to its capital expenditures. |
Since the company formulated its initial plans for reorganization, however, the general economic situation has deteriorated significantly, with leading economic institutes and the German government now forecasting a decline in growth of up to 6%. The company’s decision to further refine its strategic reorganization plan was made necessary by the massive economic downturn.
“We are firmly convinced that we must use the current crisis as an opportunity to put ThyssenKrupp in a strong strategic position for the future,” said Executive Board Chairman Ekkehard Schulz: “We need to become leaner, better and faster so that we can operate closer to the market and implement operational and strategic measures more directly.”
Details of the further developed strategic reorganization plan will be presented to the Supervisory Board for discussion and resolution on May 13. The plan also addresses the issues raised in the Supervisory Board meeting of March 27 regarding codetermination structures, which are the subject of ongoing discussions with the codetermination bodies.
Details of the further developed strategic reorganization plan will be presented to the Supervisory Board for discussion and resolution on May 13. The plan also addresses the issues raised in the Supervisory Board meeting of March 27 regarding codetermination structures, which are the subject of ongoing discussions with the codetermination bodies.
The company said its new Group structure is to be implemented legally and organizationally as quickly as possible and by no later than October 1, 2009, subject to required approvals by the Supervisory Board for individual measures.
With sales of 53.4 billion Euros and 199,374 employees in over 70 countries, ThyssenKrupp is one of the world's major technology groups and occupies excellent positions on the international markets. The three main business areas of steel, capital goods and services, organized in five segments—Steel, Stainless, Technologies, Elevator and Services—mark out the Group's areas of competence.
With sales of 53.4 billion Euros and 199,374 employees in over 70 countries, ThyssenKrupp is one of the world's major technology groups and occupies excellent positions on the international markets. The three main business areas of steel, capital goods and services, organized in five segments—Steel, Stainless, Technologies, Elevator and Services—mark out the Group's areas of competence.
