Thyssenkrupp Seeking 5 Billion Euros German Government Aid
Bloomberg reported that Thyssenkrupp AG is in talks with the German government over an aid package for its struggling steel unit worth at least 5
billion euros. The report quoted people familiar with the matter as saying that “While a wide range of aid is still being debated, the steelmaker and politicians are exploring about 2 billion euros in liquidity from a government fund and at least 3 billion euros in grants but the amount is fluid and could still change considerably during the negotiations.
According to people familiar with the matter, German Chancellor Ms Angela Merkel’s government has signaled a willingness to provide financial support to shore up the unit and ensure future domestic production of an environmentally friendly form of steel.
Once synonymous with German industrial prowess, Thyssenkrupp is fighting for survival. The pandemic intensified deep-seated structural issues at the company, which still employs more than 100,000 people. Its steel division faces severe problems, with profitability hammered by yawning pension deficits and cheap steel imports from Asia. The steel division employs around 27,000 workers, many in the heavy industrial Ruhr region in North-Rhine Westphalia.