Thyssenkrupp Steel Sale at Risk Amid Leadership Crisis

By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) – Thyssenkrupp’s planned sale of its steel business faces uncertainty due to a leadership crisis within the unit, warns the works council head, Tekin Nasikkol.

The steel unit, a key player in Germany’s industrial landscape, struggles with weak demand, competition from cheaper Asian products, and pressures to decarbonize. Nasikkol stated, “Uncertainty among the workforce is at a maximum. Fears about the future of employees and the company can be felt everywhere.”

Recent organized departures—including the chairman, CEO, and five other board members—reflect mounting disputes about the future of the steel unit. After falling up to 1.8%, Thyssenkrupp shares remained flat in trading.

Contention centers on the necessary job and capacity reductions and how much funding TKSE needs for a planned partial sale to Czech billionaire Daniel Kretinsky. Analyst Christian Obst noted, “Tough decisions are more likely, but eroded trust in management is also a risk.”

In response to the crisis, Economy Minister Robert Habeck emphasized the importance of stakeholder collaboration to stabilize the company. Despite union calls, the government currently has no plans to invest in Thyssenkrupp.

Kretinsky, who recently acquired a 20% stake in TKSE, is expected to advance discussions for a potential joint venture. Labour representatives have requested an extraordinary board meeting to address the ongoing challenges.