Miguel Ángel López Borrego, do we know him?
That’s not very likely. Nevertheless, the Frankfurt-born Spaniard will soon occupy a very prominent role in German industry: that of CEO of industry giant ThyssenKrupp (2022: more than 96,000 employees, a turnover of 41.1 billion euros). At least, if the company’s supervisory board agrees to his proposed appointment. López Borrego, 58, is the fourth director in five years to try his hand at ThyssenKrupp. His predecessor Martina Merz has led the company since the autumn of 2019. Her departure came suddenly: just last year, Merz’s contract (60) was extended until 2028. In a statement, ThyssenKrupp says that it was Merz himself who directed the departure. It does not report an explanation for this.
What awaits the new CEO?
With his appointment, López Borrego may become one of the powerful men in German industry, ironically enough, his assignment is that he must significantly reduce that influence in the coming years. For years, ThyssenKrupp has been trying to become less cumbersome and to choose a clearer direction. The conglomerate is one of the largest steel producers, but also makes car parts, submarines, hydrogen and complete cement plants. Such a broad collection has quickly fallen out of favor with investors in recent years, who prefer companies that excel in one activity. For this reason, Siemens, Philips and General Electric, among others, already decided to downsize considerably by selling or splitting off parts.
Merz also started phasing out the activities at ThyssenKrupp in good spirits. Already in her first year she sold the elevator and escalator division, one of the crown jewels of the company, for more than 17 billion euros. She also sold the mining equipment branch. Of the more than 162,000 employees who were still on the payroll in 2019, 96,000 are still there three and a half years later.
Yet Merz was unable to find a solution for perhaps the most vulnerable branch of the company: steel production. It is currently still at the heart of the company, but the factories will need many billions in the coming years to remain competitive. In addition to cutting the steel branch, López Borrego still has a few jobs that his predecessor did not get around to. Such as the sale of the maritime division and the intended IPO of hydrogen production.
Why does ThyssenKrupp choose López Borrego?
ThyssenKrupp mentioned three reasons for the appointment of the new top man that were decisive. This is how the Spaniard has been working in the industry for his entire career. He started at VDO, a German manufacturer of car electronics, and then worked in various roles for Siemens, at a time when the German conglomerate was downsizing. In addition to experience, Miguel Ángel López Borrego, not to be confused with the famous Colombian cyclist Miguel Ángel López, brings Moreno, with a lot of knowledge of automation. But perhaps most importantly: during his time at Siemens, the director gained a great deal of experience with corporate finance and the sale or spin-off of business units. It is knowledge that will serve him well in his new role at ThyssenKrupp.
In the absence of columnist Marike Stellinga, who is on writing leave, NRC chooses a person of the week every Saturday.
A version of this article also appeared in the newspaper of April 29, 2023.