On March 19, 2009, German group ThyssenKrupp AG, which specializes in steel production, capital goods and services, has announced that the company will reorganize its five segments, steel, stainless, technologies, elevator and services, into two divisions as it is planning to adapt to the changed economic environment and is positioning itself more strongly as an integrated materials and technology group.
ThyssenKrupp said the aim of the reorganization was to sharpen the focus of business activity and create a leaner, more efficient structure, including in the administrative areas. Meanwhile, the company added that reorganization is expected to yield additional sustainable cost savings of up to €500 million per year.
Accordingly, the steel, stainless and services segments will be combined in a new materials division, while the technologies and elevator segments will be joined to form a new technologies division.
Furthermore, the group's executive board is to be reduced by three members from April 1, 2009.
The new group structure is to be implemented as of the beginning of the new fiscal year on October 1, 2009.
In an extraordinary meeting on March 27, 2009, the supervisory board of ThyssenKrupp AG will be requested to approve the items in question.
"With this structural and personnel reorganization, ThyssenKrupp will be able to respond more quickly to the market and implement strategic measures more efficiently. This means we are in the best position to emerge stronger from this difficult economic situation," said ThyssenKrupp's executive board chairman Dr. Ekkehard Schulz.