Energy shift advocated, yet resisted in Germany
Thyssenkrupp CEO Advocates for Steel Import Duties and Green Energy Partnerships
In a recent development, Thyssenkrupp CEO Miguel López has expressed concerns about the renewable energy transition in Germany, citing high macroeconomic uncertainty and challenges in the current energy context as primary reasons for his scepticism [3][5]. Despite this, López has put forth suggestions for achieving competitive electricity prices in the energy sector.
López and Thyssenkrupp advocate for improving efficiency, cost-cutting measures, and strategic restructuring across their business units to maintain profitability and competitiveness. This includes significant cost reductions, such as job cuts and streamlining business units, and focusing on portfolio adjustments [1][2]. The company also emphasizes partnering in technological developments, like ammonia cracking for hydrogen supply, that contribute to energy transformation sustainably but pragmatically, rather than shifting to renewables without regard to economic viability [2].
Regarding the steel industry, López has suggested adopting the US steel tariff rules at the EU level to counteract unfair competition [6]. Thyssenkrupp's steel business remains problematic, and the company aims to sell the ailing division [7]. The weak market environment in customer industries such as automotive, mechanical and plant engineering, and construction is also affecting Thyssenkrupp [8].
In a notable move, Thyssenkrupp plans to bring 49 percent of TKMS, its marine division, to the stock exchange this year [4]. However, no current plans for state participation in TKMS have been announced [9]. López has been open to state participation in TKMS for the future [10].
Thyssenkrupp's TKMS division, a profit-maker, is a key focus for the company's long-term leadership ambitions [1]. López has sharply criticized Germany's recent energy policy [11]. He suggests importing green electricity from Scandinavia and the Iberian Peninsula for competitiveness [2].
In the face of challenging economic conditions, Thyssenkrupp has lowered its sales forecast significantly for the current fiscal year [8]. López implies that energy-intensive companies may not be able to withstand the current price level [9]. Capacities from outside Europe, especially Asia and Brazil, are moving towards Europe [6].
Despite the challenges, Thyssenkrupp remains committed to sustainable technologies and pragmatic partnerships. The company's approach to competitive electricity pricing and its stance on the renewable energy transition in Germany provide insights into its strategic thinking and its efforts to navigate the complexities of the contemporary energy landscape.
- In light of the current economic challenges, Thyssenkrupp's CEO, Miguel López, is advocating for the adoption of US steel tariff rules at the EU level as part of the community policy, aiming to counteract unfair competition within the industry.
- Considering the weak market environment and high macroeconomic uncertainty, Thyssenkrupp is focusing on energy partnerships, such as importing green electricity from Scandinavia and the Iberian Peninsula, as a pragmatic approach to achieve competitive electricity prices in the finance sector.
