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ThyssenKrupp completes stainless steel unit sale

German industrial giant ThyssenKrupp said Friday it has completed the sale of its stainless steel unit Inoxum to the Finnish group Outokumpu.

ThyssenKrupp completes stainless steel unit sale
Photo: DPA

“ThyssenKrupp today completed the combination of its stainless steel business Inoxum with the Finnish company Outokumpu,” the German group said in a statement.

Under the terms of the agreement, announced at the beginning of this year, ThyssenKrupp is to receive €1 billion ($1.3 billion) in cash from Outokumpu. In addition, Outokumpu will assume €133 million of Inoxum’s debt, as well as pension liabilities of around €338 million.

ThyssenKrupp said it would also receive a loan note from Outokumpu with a current value of around €1.25 billion plus a 29.9 percent stake in the new merged entity, which will be the new world leader in the stainless steel segment.

ThyssenKrupp — which also makes elevators, industrial plant technology, submarines and car parts — is undergoing a huge transformation, and posted a loss of €4.7 billion for the year following a writedown of two loss-making steel plants.

AFP/mry

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STEEL

German steel giant rejects ‘high cost’ state support

German industrial giant Thyssenkrupp on Friday rejected state participation to support it during the pandemic, an option favoured by unions but judged too costly by management.

German steel giant rejects 'high cost' state support
Thyssenkrupp's offices in Duisberg. Photo: Ina Fassbender / dpa / AFP
“State participation off the table,” Klaus Keysberg, the group's financial director, told the German daily Rheinische Post on Friday.
   
Keysberg blamed “high costs” in the long term of government assistance, “due to the interest payments and the terms of repayment.”
   
Already weakened by years of cut-price competition from China in the steel industry, Thyssenkrupp has further struggled with the effects of the pandemic that caused business activity to plunge.
   
The company said in mid-November it would cut an additional 5,000 jobs as part of its restructuring plan, bringing the total to nearly 11,000, to be spread out over several years.
 
   
Thyssenkrupp chief executive Martina Merz has not ruled out state assistance.
   
The powerful IG Metall union had organised rallies in October to demand a rescue plan from Berlin.
   
But the government was never enthusiastic, despite their acquisition of stakes in the airline Lufthansa and tour operator TUI, which also had business ravaged by Covid-19.
   
“I don't believe that nationalisation is the right response at the moment,” Germany's Economy Minister Peter Altmaier said in October on Thyssenkrupp.   
 
But national and regional governments favour more traditional aid structures, such as subsidies, or moves to convert to production of so-called green steel.
   
Discussions will continue to find alternatives.
   
A takeover of Thyssenkrupp's steel activities is still on the cards. British steel giant Liberty, founded by industrialist Sanjeev Gupta, launched a takeover bid in October.
   
Discussions are also underway with Sweden's SSAB and India's Tata Steel.
   
An alliance with fellow German steelmaker Salzgitter to create a national steel champion is also being considered. But these options won't be decided until “spring 2021”, Thyssenkrupp said.
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