ThyssenKrupp Project Freedom for Steel Unit Faces Green Challenge
German Handelsblatt reported that the management of ThyssenKrupp has come up with a name for the spin-off of the steel division. "Freedom" is the name of the project with which the steel manufacturer with 26,000 employees is to be swept out of the Krupp world. The choice of the name caused great resentment in the ranks of ThyssenKrupp Steel. After more than 200 years in the group, the parent company simply wants to get rid of the old core business, complain executives. The announced freedom sounds like an abandonment in the wilderness to the managers. The group itself wants to get rid of supposed ballast. CEO Ms Martina Merz wants to get out of the steel in order to stabilize the rest of ThyssenKrupp economically. But the implementation of the "Freedom" plan is becoming more and more difficult
In order to successfully sell off its core business, the group will have to reduce the amount of CO2 emitted by the unit. Customers, especially from the automotive industry, demand steel that is produced without CO2 emissions.
In a recent letter addressed to employees, thyssenkrupp Steel Europe AG chairman Mr Bernhard Osburg, said that the clean production of steel is essential for the division’s continued existence. He wrote "In no other area is time running out more than here.”
Thyssenkrupp’s Duisburg site alone emits 20 million tonnes annually. With the tightening of environmental laws, the operation of blast furnaces will become impossible unless more hydrogen is fed into the production cycle. Like other producers, thyssenkrupp has launched programmes to reduce CO2 emissions. The group aims to complete the switch by 2050. From the perspective of investors and customers, however, that target is way too far in the future.