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Mar 10, 2010

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ThyssenKrupp: Steel-CEOs pushed aside

Mar 21, 2009

Dr. Ekkehard Schulz
photo: ThyssenKrupp

German steel and engineering group ThyssenKrupp is reorganising from five divisions into two. The changes involve the departures of Karl-Ulrich Köhler, CEO of the current steel division, and Jürgen Fechter, CEO of stainless steel. The streamlining is designed to secure cost savings of "up to EUR 500m per year," the company says.

The group's current steel, stainless and service segments will be combined in a new 'materials' division. From 1 April this will be headed by Edwin Eichler (50). He, was trained and employed as an officer in the German Army from 1978 to 1990 and came to ThyssenKrupp in 2002 from the publishing house Bertelsmann AG. Currently he is head of the group's elevator business. Köhler and Fechter will stand down from the executive board of ThyssenKrupp AG on 31 March but will continue to act as advisors.

TK will also merge its transport and elevator units into a new 'technologies' division.

The changes come as the group warned it will make a loss in the second quarter of its financial year (January-March 2009) because of a 'drastic slump' in prices and demand for steel. Provided the economic situation improves in the second half of the year, ThyssenKrupp says it expects to report modestly positive operating earnings - before restructuring and project costs.

"With this structural and personnel reorganization, ThyssenKrupp will be able to respond more quickly to the market and implement strategic measures more efficiently. This means we are in the best position to emerge stronger from this difficult economic situation," says ThyssenKrupp's Executive Board Chairman Dr. Ekkehard Schulz.

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