Germany-based steelmaker ThyssenKrupp has announced that it has signed a memorandum of understanding (MoU) with India-headquartered steel giant Tata Steel to combine their European steel activities in a 50/50 joint venture. Their aim is to create a leading European flat steel player to be positioned as quality and technology leader. The planned joint venture, which will be named ThyssenKrupp Tata Steel, is set to have a workforce of about 48,000, currently at 34 locations and its shipments are envisioned to be about 21 million mt a year.
ThyssenKrupp stated that it intends to contribute its Steel Europe business to the planned joint venture. There are also plans for the joint venture to include ThyssenKrupp MillServices & Systems GmbH, a steel mill services provider that is part of the Materials Services business. Meanwhile, Tata Steel would add all of its flat steel activities in Europe. The signing of the agreement for the establishment of the joint venture is targeted for early 2018 and the closing - the effective start of the joint venture - could take place in late 2018 following antitrust approval by the relevant authorities.