German steel producer Salzgitter is not discussing any partial or total merger with ThyssenKrupp, said CEO Heinz Jörg Fuhrmann during the presentation of the company's financial results
"From my point of view, consolidation is not a particularly great vision to create a new company," said Mr. Fuhrmann. The rumors of a possible merger between the two German producers have been running for weeks and were fueled recently by some statements by Martina Merz, CEO of ThyssenKrupp, who said that consolidation in the sector made sense.
Salzgitter's CEO explained that it was natural to regularly talk to peers and rivals, including the new leadership of Thyssenkrupp. However, he went on to state, "No tie-ups are being talked about, neither of individual segments nor the whole steel divisions,” adding that so far it has been good for Salzgitter to operate independently.
These statements came as Salzgitter issued its results for the 2019 financial year. In particular, the company recorded a loss before tax of €253 million, which was burdened by cartel fines and restructuring expenses.
The Salzgitter CEO said the company would move away from its current path of independence only if it had a better alternative, and admitted that there is no guarantee that staying independent is the best recipe for the coming years. "That's why we are ... prepared, in case there were any such ideas (of consolidation), to talk about them with suitable partners," he said.