• Germany's news in English

ThyssenKrupp sells stainless steel business

The Local · 31 Jan 2012, 10:14

Published: 31 Jan 2012 10:14 GMT+01:00

Facebook Twitter Google+ reddit

Under the terms of the agreement, Inoxum will be merged with Outokumpu. In return, the German giant would receive a "significant cash payment" to cover Inoxum's debts, plus a minority stake of 29.9 percent in the combined group, ThyssenKrupp said in a statement.

"Agreement in principle has been reached on the combination of Outukumpu and Inoxum," the statement said. "The deal values Inoxum at around €2.7 billion."

The management board had already agreed to the transaction in principle "and now the negotiating parties have also reached an agreement with employee representatives," in particular with regard to job guarantees and the continuation of operations at the unit's different sites, the statement said.

Under the deal, all of Inoxum's German production sites will be maintained until the end of 2015.

A melting plant at Krefeld, western Germany, is to be gradually shut down by the end of 2013, while another at nearby Bochum will remain in operation until the end of 2016.

There would be no compulsory redundancies until the end of 2015, ThyssenKrupp said.

The deal must now be approved by the German group's supervisory board at an extraordinary meeting later on Tuesday and the sale must also be given the green light by the regulatory authorities, ThyssenKrupp added.

ThyssenKrupp - the world's 14th biggest steelmaker and also a leading manufacturer of elevators, submarines and car parts - had announced in May that it planned to sell off its stainless steel activities as part of a massive €10-billion divestment programme.

Inoxum has annual sales of more than €6 billion and employs more than 11,000 people worldwide. Massive writedowns at the business pushed ThyssenKrupp deeply into the red in its the 12 months to September.

In December, it sold civil shipbuilding activities Blohm + Voss to British investment Star Capital Partners for an undisclosed sum.

The IG Metall labour union insisted that ThyssenKrupp was solely responsible for the "difficult economic situation of both the group as a whole and the stainless steel division."

Story continues below…

"In the extremely difficult and highly tense negotiating process, we were not able to prevent ThyssenKrupp and Outokumpu from shutting down the Krefeld plant, but we were able to secure guarantees for all employees," the union said.

Investors welcomed the news with ThyssenKrupp shares showing gains of 1.94 percent on the Frankfurt stock exchange on Tuesday, outperforming the overall market.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

07:45 February 1, 2012 by rfwilson
A few days ago it was Putzmeister that was sold to Chinese interests. Now it is ThyssenKrupp. Sad!
Today's headlines
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd