Thyssenkrupp is weighing all options in an attempt to remedy its steel business that has suffered significantly due to the COVID-19 pandemic. 

 

The company’s chief executive, Martina Merz is considering state involvement and the company is prepared to sell a stake to the German government, according to news reports.

 

These comments follow metalworks’ union, IG Metall’s plea on Oct 6 for government action on behalf of the failing steel unit.

 

Merz believes contribution from the state can be a component in the routes being considered that also includes the prospect of government claim prior to any possible third-party business takeover. However, a lasting outcome for the steelmaker is the ultimate goal, per reports.

 

The economy minister recently rejected the notion of the state taking an interest but would rather back payments to aid the steel industry during its evolution to hydrogen-based production, also saying these new models will advance the steel unit in Germany.

 

The German conglomerate likely suffered an operating loss of around $1bn euros ($1.17bn) in 2019 in its steel sector. This loss led to the company looking into affiliations with Tata Steel in India, Germany’s Salzgitter, and Sweden’s SSAB, according to media reports.

 

Steelworkers at thyssenkrupp will hold protests on Oct 16 to further the cause.

 

($1 = €.85)

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