THE crisis at the steel unit of Thyssenkrupp deepened on Thursday as its chief executive and the head of its supervisory board quit over their ongoing conflict with the German conglomerate’s CEO.
Sigmar Gabriel, a former economy minister from the Social Democrat party, said at a press conference that he was quitting as head of the supervisory board, accusing the group’s chief executive Miguel Lopez of an “unprecedented campaign” to force out supervisory board members at Thyssenkrupp Steel Europe.
The unit’s chief executive Bernhard Osburg also quit on Thursday, as did three other members of the board, including employee representative Detlef Wetzel.
Lopez has openly criticised Osburg over restructuring plans at the steel unit.
The management struggle comes against a background of higher costs and growing imports of cheaper Asian steel, placing the future of Germany’s largest steelmaker further into question.
Thyssenkrupp Steel has already cut jobs at its historic factory at Duisburg in the Ruhr region, and employees fear thousands more positions may be at risk.
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The management spats have held up any progress on the needed restructuring of the steel activities, which employ 27,000 people.
The conglomerate has been looking to separate steel from its other activities, which range from shipbuilding to elevators.
A first step was reached in July when Czech energy company EP Corporate Group (EPCG) run by billionaire Daniel Kretinsky took a 20-per cent stake in the steel unit.
The two sides are continuing to negotiate, with a goal of Kretinsky eventually holding 50 per cent of the unit. AFP
