(technical repetition)
ESSEN (dpa-AFX) – The traditional company Thyssenkrupp sees itself as a pioneer on the path to climate neutrality in industry. Thyssenkrupp boss Miguel López emphasized that they are “pioneers of the green transformation” on Wednesday in Essen when presenting the annual balance sheet for the 2022/23 financial year. “We have world-leading technologies to reduce much of today’s CO2 emissions.”
López referred to the new segment called Decarbon Technologies, in which the industrial and steel group has pooled its green activities since the beginning of October. These include the plant manufacturers Nucera (electrolyzers for hydrogen, for example), Uhde (chemical plants) and Polysius (cement plants) as well as the slewing bearing manufacturer Rothe Erde, whose products are used in wind turbines. The entire group will be geared towards green transformation and future topics, including the automotive supply and materials division, emphasized the 58-year-old manager. It was the Spaniard’s first balance sheet presentation after he took over management of the group from Martina Merz at the beginning of June.
“We are the biggest climate activists in the country”
Even with climate-neutral steel, we are the “driver” of the transformation. “The biggest climate activists in the country are us,” said López. He was referring to the planned switch to steel production in blast furnaces, which produces a lot of carbon dioxide. In the future, steel will be produced in so-called direct reduction plants using hydrogen produced in a climate-neutral manner. A first system, which will cost around three billion euros, is scheduled to start in Duisburg in 2027. Thyssenkrupp Steel is Germany’s largest steel manufacturer. According to its own information, the steel division is currently responsible for around 2.5 percent of the total carbon dioxide emissions in Germany.
Regarding the planned independence of the steel division, Thyssenkrupp says it is holding “constructive and open-ended discussions” with the energy company EPH. There is discussion about a potential joint venture with Steel Europe, which EPH could support with its energy expertise. The specific structure of a possible joint venture is the subject of ongoing negotiations.
Discussions with EPH may still take some time
López left it open when an agreement could be expected. In the ongoing discussions, the “classification” of the remaining, very challenging environment with a weak economy, rising raw material costs and high energy costs “will still take time”. “We are working on a solution with EPH. If there is no solution here, we of course also have a plan B, but I cannot share it here.”
EPH is owned by Czech billionaire Daniel Kretinsky. The group includes the lignite companies Mibrag and Leag in eastern Germany, which want to increasingly generate climate-neutral electricity from renewable energies in the future.
The success of CO2-neutral steel production is essentially dependent on the secure supply of large quantities of “green” energy at competitive prices, according to a company statement. “For this reason, Thyssenkrupp is in contact with possible strategic partners from the energy sector.”
Human resources director: Co-determination is closely involved
“If we get it right, we can significantly improve Steel Europe’s competitiveness and prepare the business for future green markets,” said Human Resources Director Oliver Burkhard. Co-determination plays an important role in this transformation. “She is closely involved in the discussions about self-employment in the tried and tested manner.”
At the beginning of October, after the talks with the EPH Group became known, the IG Metall union warned against a “swift action at the expense of the employees”. At the end of September, a good 26,800 people were employed in the steel division. The largest location is Duisburg with around 14,000 Steel employees alone. Group-wide, the number of full-time positions rose by around four percent to almost 100,000 in 2022/23.
Loss of two billion euros – dividend still planned
In the financial year that ended at the end of September, billions in depreciation on the steel business pushed the group deep into the red. The bottom line was a net loss of around two billion euros. Thyssenkrupp put the value adjustments on the steel division’s fixed assets at 2.1 billion euros. It was said that the depreciation was necessary due to the deteriorating economic environment and higher capital costs.
Thyssenkrupp had originally promised an “at least” balanced annual profit – after a profit of 1.2 billion euros in the same period last year. Thanks to a significantly improved cash inflow, shareholders will still receive an unchanged dividend of EUR 0.15 per share.
Falling steel prices and simultaneously rising raw material and energy costs impacted earnings before interest and taxes (EBIT) adjusted for special effects, which fell from almost 2.1 billion to 703 million euros. Sales fell by nine percent to 37.5 billion euros. Thyssenkrupp wants to return to profitability in the new financial year. The stock market rated the company news positively. By the early afternoon, Thyssenkrupp shares had risen to over seven euros. With an increase of over seven percent, the share led the MDAX.
López also discussed the recently launched “Apex” improvement program. This is primarily about profitable growth, for example through the use of artificial intelligence to better manage material inventories. In the forging business, artificial intelligence helps to find alternative suppliers. Measures have already been set for a volume of 1.2 billion euros, said López./nas/tob/DP/tih
— By Natali Schwab (dpa-AFX) and Helge Toben (dpa) —
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