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Thyssenkrupp Shuts Down Steel Unit's Funding Request

  • Writer: By The Financial District
    By The Financial District
  • Aug 13, 2024
  • 1 min read

Thyssenkrupp said that its steel division must be restructured to fund investment needs with its own earnings, but that the parent company had provided financial security for the next two years, Ludwig Burger reported for Reuters.


The purpose of the ongoing turnaround efforts is to enable TKSE to earn enough money on its own to fund its investment needs and to cope with any temporary down cycle in the future. I Photo: Thyssenkrupp Steel



The comments from Thyssenkrupp CEO Miguel Lopez came after the chairman of the steel division said the business needs to bridge a 1.3-billion-euro ($1.4 billion) funding gap.


Sigmar Gabriel of Thyssenkrupp Steel Europe made the funding comment late on Friday after a supervisory board meeting.



The parent company is cutting its stake in the unit, which is suffering from a drop in demand and steel product prices.


Lopez said that the purpose of the ongoing turnaround efforts was to enable TKSE to earn enough money on its own to fund its investment needs and to cope with any temporary down cycle in the future.



He also warned against any speculation about insolvency. "The financial needs of Steel Europe for the next 24 months will be secured by Thyssenkrupp AG. That should put an end once and for all to any speculation. There was never the danger of insolvency, and there won't be now," Lopez added.




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