FRANKFURT (Dow Jones)–Thyssenkrupp sees itself under increasing pressure in the steel business in view of the weak economy and increased competition from the Far East. “The previously optimistic earnings expectations have become “significantly clouded,” explained its chairman Sigmar Gabriel after a meeting of the supervisory board. He referred to the increase in raw material costs, the persistently high energy costs and the strong competition from Chinese steel producers on the European market.
Gabriel criticized the “actually unchecked access of steel products from non-European countries, especially from Asia”. Manufacturers there neither have to bear the costs of CO2 emissions nor are they exposed to the same conditions on the raw material markets as the German and European steel industries, says Gabriel. That is threatening to existentially. The SPD politician called on the European Union to take appropriate measures to achieve fair competitive conditions. “Otherwise there will not only be no green steel production in Europe, but none at all.”
Steel’s management board presented the supervisory board with initial proposals for improving earnings under the given macroeconomic circumstances. These would be substantiated until another meeting, said Gabriel.
From Gabriel’s point of view, the current situation has no consequences for the ongoing talks with the Czech billionaire Daniel Kretinsky about joining Thyssenkrupp Steel. Gabriel said he assumes that Thyssenkrupp will provide “full transparency” to the interested party. There are always short-term disruptions in the steel industry. “I’m sure Mr. Kretinsky knows that.”
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(END) Dow Jones Newswires
October 18, 2023 08:28 ET (12:28 GMT)
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