Escalation in Duisburg
Sigmar Gabriel quits Thyssenkrupp Steel
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Differences, breach of trust – and now the big bang: the leadership of the steel division at Thyssenkrupps quits. The relationship with the parent company was shattered after it publicly counted the steel boss. In addition to the chairman of the supervisory board, Gabriel, there are three board members.
The heads of the supervisory board and executive board of Thyssenkrupp's steel division are resigning. The chairman of the supervisory board, Sigmar Gabriel, referred to “differences” with CEO Miguel López and an “unprecedented campaign” that he had carried out against the steel division's board of directors in recent weeks. It is a “serious breach of trust”. A trusting collaboration with López and the group's supervisory board chairman, Siegfried Russwurm, is no longer possible, said Gabriel. Another three members of the supervisory board also wanted to resign.
And the management team is also giving up: Both the head of the steel business, Bernhard Osburg, as well as HR director Markus Grolms and chief operating officer Heike Denecke-Arnold have signed termination agreements. Gabriel accused López of having pushed for the resignation of the board of Thyssenkrupp Steel with his actions. “And this despite the fact that the board of Thyssenkrupp Steel Europe AG has actively looked after the steel company's interests and successfully defended itself against what it sees as unacceptable influences on its work.”
Russwurm – President of the Federation of German Industries (BDI) – also made accusations against Gabriel. Overall, he no longer has the impression that the Executive Board and Supervisory Board of Thyssenkrupp AG would continue to pursue the original plan of a spin-off while largely retaining the steel division.
Habeck and Wüst get involved
The crisis at the former steel giant had sent waves as far as Berlin. The Federal Ministry of Economics tried to postpone the meeting of the supervisors of the ailing steel division. Federal Economics Minister Robert Habeck and North Rhine-Westphalia Prime Minister Hendrik Wüst had asked that the meeting be postponed for four weeks, according to sources in the Ministry of Economic Affairs. This should open up the possibility for further discussions.
But the committee in Duisburg, headed by former Federal Economics Minister Gabriel, discussed the future of the part of the group, which has been suffering from rising prices and growing competition for years. The supervisory board had already discussed how to proceed at the beginning of August, but had not come to a solution.
There is a particular dispute over the further financing of the division. López criticized Osburg after the meeting at the beginning of August and asked him to “finally create a long-term, sustainable, solid and financeable business plan for the realignment.” Employee representatives have been warning for months about possible job cuts due to the restructuring.
The group is pushing ahead with the spin-off of the steel subsidiary. 20 percent has already been sold to the Czech billionaire Daniel Kretinsky's company EPCG. The plan is to transfer a further 30 percent to EPCG. Employee representatives fear the loss of thousands of jobs. Lopez is also arguing with steel boss Osburg about the amount of dowry that the parent company should give to the daughter on her journey to independence. Gabriel recently stated that the division saw a need for financing that was around 1.3 billion euros more than what the group was offering.
