The enormous German conglomerate Thyssen-Krupp will not emerge from the coronavirus intact, according to media reports, with plans for extensive sell-offs already far advanced. The only three lines of business are expected to remain within the steel producer’s control: automotive technology, materials services (the group’s largest segment as measured by sales) and industrial components. According to the New York Times, those business lines accounted for 43 percent of the company’s sales in 2019 and employ 52,000.
What’s unclear at this moment is whether it will hang on to its steel production and warship business, which provide another €11bn in sales while employing 33,000 people. Most everything else is likely to be sold off, including its plant technology, power train solutions, infrastructure and battery solutions divisions. The company is currently trying to deal with €7bn in debts and rising pension liabilities. It’s already agreed a deal for its elevators and escalators business which should bring in €17.2bn when the deal closes in September. Many more such sales are on the way.
