Indians are interested in purchasing Thyssenkrupp steel
In a significant development, the North Rhine-Westphalia state government has expressed openness to the potential takeover of Thyssenkrupp Steel by Jindal Steel. This move is aimed at securing a future-proof perspective and driving the transformation towards climate-neutral steel production.
Thyssenkrupp Steel, Germany's largest steel producer, plans to reduce its capacity from 11.5 million tons per year to 8.7 to 9 million tons. This reduction is expected to result in the outsourcing or elimination of around 11,000 jobs, although no forced redundancies are planned.
The works council of the steel division views Jindal's interest as a generally positive sign. Jindal Steel, which employs more than 20,000 people on three continents, has offered to make Thyssenkrupp Steel Europe's largest integrated and climate-friendly steel producer.
Jindal Steel, owned by the family-led Naveen Jindal Group from India, emphasizes a combination of financial strength, global steel expertise, a clear vision for decarbonization, and competitive steel production in Germany. The company's European director, Narendra Misra, has emphasized belief in the future of green steel production in Germany and Europe.
The works council of Thyssenkrupp's steel division is open to constructive talks if a new owner commits to investing in industrial decarbonization and securing the long-term future of steel production in Duisburg and Germany. The EU Commission previously blocked a potential joint venture between Thyssenkrupp and Tata Steel in 2019 due to competition grounds.
Thyssenkrupp shares rose more than 4% in response to the takeover offer. EP Group, which owns 20% of Thyssenkrupp Steel, has not commented on the news. Jindal Steel operates two coal-fired power plants in India and owns iron ore and coal mines.
As of the end of June, Thyssenkrupp Steel employed nearly 26,000 people. The state government's openness to the potential takeover comes as Thyssenkrupp AG announced an offer for Thyssenkrupp Steel, aiming to secure a sustainable future for the steel industry in Germany.
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