Good Future For German Steel, Experts Tell Thyssenkrupp

An expert review of the financial needs of Thyssenkrupp’s crisis-stricken steel division has offered a positive outlook on its ability to continue operating as a going concern, the parent company announced, Tom Kaeckenhoff and Madeline Chambers reported for Reuters.

Thyssenkrupp wrote down the steel division’s value by an additional €1 billion ($1.04 billion), citing weak demand and competition from Asia as factors contributing to a deteriorating outlook for the sector. I Photo: Thyssenkrupp Steel Facebook

In a written response to Reuters, Thyssenkrupp confirmed that, based on the expert report, it has committed to financing the steel division’s liquidity needs for the next two years.

“This means there is now clarity regarding the financing situation of the steel division,” the company stated, confirming a report in Der Spiegel weekly.

Thyssenkrupp commissioned two external reviews to assess the short- and long-term financial health of its steel division. The first review will inform the second report, which is due next year and will guide future decisions about the business.

Earlier this month, Thyssenkrupp wrote down the steel division’s value by an additional €1 billion ($1.04 billion), citing weak demand and competition from Asia as factors contributing to a deteriorating outlook for the sector.

While pursuing a 50:50 joint venture with Czech billionaire Daniel Kretinsky, the company is also in discussions with other potential partners, as past attempts to sell the steel business have failed.