Juergen Kerner, the deputy chairman of thyssenkrupp’s supervisory board, has urged the company to keep its steel business as it considers a slew of options, including a sale, for the loss-making entity.

 

According to media reports from Munich, Kerner said the conglomerate would fall apart if the steel division was taken out of the equation. Earlier this year, Martina Merz, the company’s chief executive officer, had announced that thyssenkrupp was considering a range of options for its steel unit including joint ventures, keeping the group within the company, and partial or full sale to rival companies to divest from the business.

 

Kerner, who is also the chief treasurer of IG Metall, Germany’s largest steelworkers union, told the media on July 23 that he believed thyssenkrupp should remain in the steel business and consider options for national steel consolidation with smaller rivals like Salzgitter to become more competitive.

 

However, media reports suggest that the move would require billions of euros in support money from the German government for such an entity, especially to avoid large layoffs.  

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