Thyssenkrupp Steel is reportedly planning to delve into bookkeeping soon.
In a significant development for the European steel industry, Indian conglomerate Jindal Steel International has submitted a non-binding offer for Thyssenkrupp's steel division. This potential acquisition, if approved, could strengthen Jindal Steel's position in the European market for high-quality steel.
Jürgen Kerner, the second chairman of IG Metall and a deputy member of Thyssenkrupp AG's supervisory board, views this merger as a 'perfect complement'. He believes that Thyssenkrupp Steel's integration into Jindal Steel could expand the latter's presence in Europe. IG Metall, the largest metalworkers' union in Germany, has also expressed openness to the potential acquisition.
Jindal Steel envisions a 'mine-to-metal' value chain for its steel operations. To this end, the company plans to supply high-quality iron ore from its mines in Cameroon. This iron ore will be used for the Direct Reduction Iron (DRI) plant in Oman and the one under construction in Duisburg. The Duisburg DRI plant, a key part of Jindal Steel's 'Jindal Plan', will be used for the production of greener steel.
Jindal Steel has been active in many markets but has only had small activities in Europe. To change this, the company plans to invest over two billion euros in arc furnace capacity at Duisburg. This investment is expected to create new opportunities for the European market, particularly for high-quality steel.
Behind this offer is the Indian company Jindal Steel International, part of the family-owned Naveen Jindal Group. The group has operations in Europe, Asia, Africa, and the Middle East. Jindal Steel already has a presence in Europe and brings expertise in green steel production and raw material access. The company aims to continue and expand sustainable steelmaking in Germany, particularly at the Duisburg site.
The potential acquisition of Thyssenkrupp Steel by Jindal Steel is being carefully considered by Thyssenkrupp, with a focus on its economic viability, green transformation, and job security at the steel sites. Europe remains a significant sales market for high-quality steel, and an engagement between Thyssenkrupp Steel and Jindal Steel would make strategic sense for Jindal Steel.
Jürgen Kerner's statement indicates that IG Metall sees potential synergies between the two companies, particularly in the European market. If the acquisition goes through, it could potentially strengthen Jindal Steel's position in the European market for high-quality steel, while also providing new opportunities for Thyssenkrupp Steel. The final decision, however, rests with Thyssenkrupp.
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