Thyssenkrupp announced it is separating into two separate companies: Thyssenkrupp Materials and Thyssenkrupp Industrials. The supervisory board unanimously approved the plan to separate the group, which will receive final shareholder votes in the next general meeting. The split will allow the materials and industrial businesses to be managed and publically listed separately in the next 12-18 months.
The materials segment will include trading, steel production, steel processing as well as the new steel JV with Tata Steel. This will also allow for consolidation as the both entities develop the unit. The industrials segment will include the elevators and plant engineering divisions.
CEO Guido Kerkoff stated that he did not anticipate Thyssenkrupp to be significantly impacted by US trade tariffs. Kerkoff added that the split would allow for higher stock valuation and better profitability.
German-based Thyssenkrupp is a mutlinational conglomerate which generates about 30 percent of its consolidated sales in its home market, about 28 percent in the EU and approximately 21 percent in North America.