ThyssenKrupp is in talks with the German government over a steel aid package for its struggling steel unit worth at least $5.9billion (5 billion Euros) to secure its survival.
The discussion between German government and the steel unit is focused to stabilize the business by covering the losses of two billion Euros.
It is critical to get an aid for Thyssenkrupp’s steel operations, the unit which supplies “made in Germany” products from wind turbines to cars. That’s prompting decision makers to lean towards a deal to secure the company.
The Federal government is seeking to minimize the use of WSF funds possible.
There are daunting obstacles for tapping the money because of long running issues at the company and no final decision has been reached.
The state’s economic minister, Andreas Pinkwart, said
“To enable companies like ThyssenKrupp Steel to innovate and modernize we are working with the federal government and the European Commission,” “Our goal: to become the leading European region for modern and climate-friendly industry.”
Carsten Schneider, the general secretary of the Social Democrats said
“We want to keep steel production in Germany; several options of aid are under discussion.”
ThyssenKrupp Believes that the best option for its struggling Steel Europe arm would be within a larger entity, Merger is necessary to secure industry’s long-term future.
Discussions with the German state for aid for the expensive low-carbon steel transition could improve the unit in any merger options.
In The Automotive News Europe list, ThyssenKrupp ranks No.21 of top 100 global suppliers, with fiscal 2019 sales to automakers of $11.86 billion
