ThyssenKrupp is making good progress in implementing the strategic development program launched in May 2011. Dr Heinrich Hiesinger chairman of the executive board of ThyssenKrupp AG will report to shareholders about progress so far at the 13th Annual General Meeting at the RuhrCongress in Bochum.
Mr Hiesinger said that "In the long term we see ThyssenKrupp as a diversified industrial group with several strong businesses in attractive growth markets. This also means that we want to further reduce our dependence on individual businesses and regions. In the future we will be focusing on our technology businesses even more strongly than in the past. Global trends such as population growth, urbanization and globalization provide enormous growth opportunities, which we intend to seize."
To create the financial latitude necessary for investment in growth, ThyssenKrupp’s strategic development plans include an extensive divestment program. The company is disposing of businesses for which there are stronger alternative strategic options.
With the sale of the Metal Forming group and the Xervon group, two transactions have already been completed. On December 11th 2011, ThyssenKrupp signed a sale and purchase agreement with UK based Star Capital Partners for the civil shipbuilding operations of ThyssenKrupp Marine Systems. The disposal processes for Waupaca and Tailored Blanks are also making progress. For Waupaca, ThyssenKrupp’s US foundry business, promising bids from potential buyers are currently being evaluated. The integration of the chassis businesses has also started. The combination of the Bilstein group with Presta Steering will create a major chassis full service provider with a global presence and sales of around EUR 3 billion. A small part of this group, the spring and stabilizer business, is also being sold. The Brazilian Automotive Systems business has already been sold to Cosma International, a subsidiary of the automotive supplier Magna.
The divestment of Inoxum, formerly Stainless Global, is also proceeding according to plan. The new brand Inoxum has been launched. The legal, organizational and contractual measures to carve out Inoxum were completed on September 30th 2011. Inoxum is already reported as a discontinued operation in the financial statements of the ThyssenKrupp Group for 2010-11. ThyssenKrupp is continuing to examine all three options for the disposal of the unit: an IPO, spin off or sale. The Group is sticking to its timetable to complete the disposal of the unit by the end of 2012.
The aim of this portfolio optimization is to reduce ThyssenKrupp’s debt, improve its rating and in the medium term once again open up more financial opportunities for investment. A further objective is to significantly improve the Group’s earnings power.
Dr Heinrich Hiesinger said that "In many areas we already lead the way with our engineering expertise and offer intelligent product solutions with which we profit from the big global trends such as population growth, urbanization and globalization. Around the world there is rising demand for consumer and capital goods, infrastructure, energy and raw materials. But set against these demands for more is the finite nature of our natural resources. Global climate change and the ever increasing requirements for energy and resource efficiency and environmental protection make clear that the world doesn't just need more, above all it needs better solutions. With our engineering expertise we enable our customers to meet this demand for more in better ways and so gain a competitive edge."
To fully leverage these growth opportunities, ThyssenKrupp will be investing more strongly in its Technologies businesses in the medium and long term, focusing on core businesses in which the Group holds leading market positions.
