ThyssenKrupp and Tata Steel move closer to setting up a joint steel company

ThyssenKrupp has reached an agreement with IG Metall to continue working on a joint venture with Tata Steel. It can be created early next year.

ThyssenKrupp and Tata Steel intend to create a joint steel company in Europe, in which each side will own half of the shares. An agreement with the German trade unions was one of the conditions for the creation of a joint venture. The company will employ 48 thousand employees and its sales value will reach 15 billion euros.

The agreement reached provides the German factories of ThyssenKruppa with the basis for work until the end of September 2026. The company invests at least 400 million euros per year. However, the conservation of objects does not mean the continuation of all their activities. Certain installations in Bochum, Eichen and Hüttenheim will be examined in terms of their feasibility to ensure their efficient operation. They have a guaranteed future until the end of 2021, and their further fate depends on the result of the study.

Thyssenkrupp will maintain its stake in the planned joint venture for at least 6 years, although this does not mean that changes in the company's ownership structure are prohibited. Unions and management have agreed to lay off 2,000 employees in a “socially responsible manner”.

The signing of an agreement on the creation of a joint company may take place in the first months of next year. The final decision, depending on obtaining the necessary permits, will have to be reached by the end of next year.