Steel Market Downturn: Thyssenkrupp's M&A Plans Hold Steady

Thyssenkrupp's Steel Division: Navigating Market Challenges

---

Thyssenkrupp, a stalwart in the steel industry, is navigating through some challenging waters, according to the head of the company's steel division. However, it's important to note that their plans to partially divest the unit remain steadfast.

The German conglomerate has adjusted its outlook for steel market earnings, citing a combination of factors that have contributed to this shift. Economic softness in Germany and other global markets, coupled with rising costs of raw materials and energy, have tempered their earlier optimism. On top of these challenges, the influx of low-cost Chinese steel imports into Europe has added to their concerns.

This ebb and flow in the steel industry is nothing new, as remarked by Sigmar Gabriel, who chairs the supervisory board of Thyssenkrupp Steel Europe. He's a seasoned figure in Germany's Social Democrats and former economy minister, and he recognizes the cyclic nature of the steel economy.

One of the pressing issues he highlighted is the unhindered entry of Asian steelmakers into the European market, with the added advantage of not having to shoulder the costs associated with CO2 emissions. This, Gabriel believes, poses a serious threat to the sector's sustainability. He stressed the importance of establishing fair competition conditions through measures at EU borders to safeguard Europe's steel industry.

In the midst of these challenges, discussions concerning the potential sale of half of Thyssenkrupp's steel division to Czech billionaire Daniel Kretinsky continue unabated. Gabriel emphasized that these market fluctuations are par for the course in the steel sector and expressed confidence that Mr. Kretinsky is well aware of this reality.

Source: Reuters (Reporting by Tom Kaeckenhoff and Christoph Steitz)