Reuters reported that German labor representatives have met Outokumpu and ThyssenKrupp to hammer out a deal that would secure German jobs under any merger of the stainless steel businesses of the two firms.
Outokumpu said in a statement that it was in talks with the German steelmaker to evaluate potential strategic options, including a potential business combination.
A spokesman for ThyssenKrupp confirmed the company was in talks with its Finnish rival, but that it was still considering all options for its stainless steel unit, renamed Inoxum.
The sale of all or part of Inoxum would mark a key step in slimming down the exposure of Germany's largest steelmaker to a volatile sector and would advance the long awaited consolidation of an industry battling overcapacity and cheap Chinese imports.
According to one source, during the meeting between labor on the one side and the two companies on the other, both sides exchanged views on their positions.
A second source familiar with the matter told Reuters that "The labor position was explained and the other side told them their plans. There was simply an exchange of views."
The second source said that the executives told labor that the two companies wanted a merger and that ThyssenKrupp wanted to bring in all of Inoxum into Outokumpu. It added that "The labor representatives clearly stated what they wanted: no mandatory job cuts, and an industrial concept that will ensure the continuity of the European plants."
Union sources have said they see the risk of a shutdown of the manufacturing capacity of stainless steel slabs in Bochum and Krefeld. The jobs of at least around 1,000 workers in the slabs production are at risk, they said, adding those in the cold rolling processing facilities might also face some cuts.
Inoxum has 11,000 workers worldwide and about 5,700 of those are in Germany. An analyst who declined to identified estimated some 2,000 to 3,000 jobs in Germany could be cut if some plants were to be shutdown in the country.
(Sourced from www.reuters.com)
