On Thursday, Thyssenkrupp (TKAG.DE) revealed its intentions to combine its companies with a green technology focus into one division and started a performance program to fulfill its mid-term objectives and recover investors’ confidence.
This action is the first big attempt made by CEO Miguel Lopez, who took over the company’s leadership in June, to resurrect the firm’s fortunes, which manufactures everything from submarines to automobile components and the lagging share price.
The new Decarbon Technologies part of the conglomerate will begin operations on October 1. It will consist of Thyssenkrupp’s holdings in the hydrogen company Nucera (NCH2.DE), the bearings manufacturer Rothe Erde, the ammonia business Uhde, and the cement division Polysius.
As a direct consequence of this development, the Multi-Tracks branch of the company will be eliminated. This department was established by the company’s previous chief executive, Martina Merz, to consolidate all assets that may be put up for sale under one roof.
The firm also unveiled APEX, a program to raise its operational performance. It was hinted at during its third-quarter results last month, indicating that all divisions will find further steps to improve cash management. This initiative was revealed with the results of the company’s third quarter.
The German manufacturing company pointed out increases in material prices as one potential area where this may occur.
“The climate is far more difficult than anybody could have anticipated at the end of 2021. “This not only refers to the conflict in Ukraine but also – as a result – to the uncertain energy supply and high energy prices in Germany, continuing disrupted or fragile supply chains, as well as higher inflation worldwide and the significant rise in interest rates,” the organization added.
“The performance program now serves as a means to close the gaps that have arisen as a result decisively.”
A day after Germany said it was contemplating purchasing a share in the Thyssenkrupp Marine Systems business, which produces warships, Thyssenkrupp clarified that its Steel Europe and Marine Systems segments were still slated to be split off as separate companies.
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