The future chairwoman of the supervisory board at Thyssenkrupp Steel, Ilse Henne, is responsible for sustainability on the board of the parent company Thyssenkrupp.
In addition to Gabriel, the deputy chairmen of the supervisory board, Detlef Wetzel and Dr. Elke Eller, as well as committee member Wilhelm Schäffer, also announced their resignations at the end of August.
In addition, three members of the Thyssenkrupp Steel Executive Board – Bernhard Osburg (CEO), Heike Denecke-Arnold (COO) and Markus Grolms (CHRO) – have reached an agreement with the Supervisory Board to terminate their Executive Board activities by mutual consent, according to a press release. The remaining Executive Board members Dennis Grimm (CTO) and Philipp Conze (CFO) will initially continue to manage the Steel Segment’s business.
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Steel crisis hits Thyssenkrupp hard
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Steel Europe is operating in a very challenging environment, reports Thyssenkrupp in its third quarter report for 2023/2024, with orders and sales still below the previous year’s level. The company will therefore jointly commission a going concern report, it said.
The steel division currently employs around 27,000 people. Job cuts and the planned reduction in production capacity were announced back in the spring. At the end of July, Thyssenkrupp finalized the 20 percent stake in the steel business owned by the energy company EP Corporate Group. The aim is to set up Thyssenkrupp Steel as a 50/50 joint venture in the future.
Johannes Traut
Advisor to former board members of Thyssenkrupp Steel
Seitz (Cologne): Dr. Johannes Traut, Dr. Stefan Seitz (both lead); Associate: Niklas von Ancken (all employment law)
Advisor to the Executive Board and Supervisory Board of Thyssenkrupp AG
Inhouse (Essen): Oliver Burkhard (Head of Human Resources/Labor Director), Kathrin Dennler (Head of Group Function Human Relations Management), Christian Schmidt (Top Executives Partner) – known from the market
Linklaters (Düsseldorf): Dr. Ralph Wollburg, Dr. Andreas Zenner, Dr. Julius Raapke (all Corporate)
Ralph Wollburg
Background: According to JUVE information, Burkhard, Director of Human Resources and Executive Board Member for the parent company Thyssenkrupp, was involved in the negotiations with the outgoing steel board members, as was Dennler, who has been in charge of human resources for many years. Schmidt is responsible for the remuneration systems of the top executives.
Linklater’s long-standing advice to Thyssenkrupp AG also includes current governance and crisis consulting in the background. While corporate partner Wollburg also involves corporate law partner Zenner and experienced counsel Raapke in the management board consulting, he usually handles the supervisory board consulting alone.
The board members of the steel subsidiary were advised on their departure and the negotiation of a severance package by a team led by partners Traut and Seitz. The two have long been familiar with the Thyssenkrupp Group and had, for example, also supported former Thyssenkrupp CEO Guido Kerkhoff and board members Andreas Goss and Premal Desai from the steel division in terminating their contracts.
Thyssenkrupp Steel’s Leadership Changes and Industry Challenges: An In-Depth Analysis
The steel sector is known for its volatility, and recent shifts within Thyssenkrupp Steel highlight the ongoing challenges faced by companies in this industry. As the future chairwoman of the supervisory board, Ilse Henne, takes the helm amidst this turbulence, it’s crucial to examine the recent leadership changes and the broader implications for the company’s sustainability and strategic direction.
Significant Leadership Transitions
In a strategic move, several key figures have announced their resignations, including deputy chairmen Detlef Wetzel and Dr. Elke Eller, along with committee member Wilhelm Schäffer. This shift indicates a transformation in Thyssenkrupp’s governance as it continues navigating through a challenging economic landscape.
Simultaneously, the executive board has seen substantial changes: CEO Bernhard Osburg, COO Heike Denecke-Arnold, and CHRO Markus Grolms have all agreed to terminate their roles by mutual consent, leaving Dennis Grimm (CTO) and Philipp Conze (CFO) to oversee the Steel Segment’s operations for the time being. These developments could bring a new strategic focus to the company as it aims to bolster its resilience amidst adversity.
The Impact of the Steel Crisis
Current Challenges
According to the third-quarter report for the fiscal year 2023/2024, Thyssenkrupp Steel Europe is grappling with a challenging environment, with both orders and sales falling below the previous year’s figures. This scenario has compelled Thyssenkrupp to jointly commission a going concern report, underscoring the urgency of addressing its financial and operational challenges.
The steel division, employing approximately 27,000 staff, is faced with necessary job cuts and capacity reductions announced earlier in the year. The market dynamics are forcing companies to adapt swiftly to survive, and Thyssenkrupp Steel is no exception.
Structural Adjustments
In a bid to foster sustainability and enhance operational efficiency, Thyssenkrupp has recently finalized plans to transfer a 20% stake in its steel business owned by the energy company EP Corporate Group. The goal is to establish Thyssenkrupp Steel as a 50/50 joint venture in the future, reflecting a strategic pivot aimed at sharing risks and resources effectively.
This joint venture approach is expected to provide Thyssenkrupp with the agility needed to navigate market fluctuations, while also allowing for a more sustainable business model in an industry characterized by heightened competition and rising production costs.
Commitment to Sustainability
Ilse Henne’s appointment represents a commitment to sustainability, a critical focus area for Thyssenkrupp as it strives to reconcile profitability with environmental responsibility. Navigating the steel crisis demands innovations not just in operational efficiency but also in sustainable practices, aligning with global trends towards greener business models.
Future Prospects
As climate concerns become paramount, Thyssenkrupp Steel is obliged to explore technological advancements in steel production, including reducing CO2 emissions and increasing recycling efforts. Such innovations can potentially position the company favorably in an increasingly eco-conscious market.
Conclusion
Thyssenkrupp Steel is at a pivotal juncture as it grapples with leadership changes while confronting significant industry challenges. The company’s strategic adjustments, particularly regarding its joint venture with EP Corporate, will be crucial in enhancing operational resilience. Under the guidance of new leadership, particularly with an emphasis on sustainability, Thyssenkrupp Steel is set to navigate these turbulent waters, aiming not just for survival but for a more robust and sustainable future.
As the steel crisis continues to present formidable challenges, the actions taken now will define Thyssenkrupp’s trajectory in the fiercely competitive steel market. Stakeholders, employees, and investors will be watching closely to see how these leadership shifts and strategic pivots unfold in the coming months.
