ThyssenKrupp

ThyssenKrupp
source
Name	ThyssenKrupp AG
Foundation	1999 (merger of Friedrich Krupp AG Hoesch-Krupp and Thyssen AG)
Location	Essen, North Rhine-Westphalia, Germany
Key people	Miguel Ángel López Borrego (CEO), Siegfried Russwurm (Chairman of the Supervisory board)
Industry	Conglomerate
Products	Steel, elevators, automotive parts, marine systems, plant technology
Revenue	€41.1 billion (2023)
Num employees	~96,000 (2023)
Homepage	https://www.thyssenkrupp.com

ThyssenKrupp is a major German industrial conglomerate headquartered in Essen, formed by the merger of two historic Ruhr valley steel empires. The company operates globally across several core business areas, most notably in steel production, elevator manufacturing, and specialized industrial engineering. Its history is deeply intertwined with the industrialization of Germany and the economic development of the European Union.

History

The company's origins trace back to the separate rise of the Krupp family and the Thyssen family in the 19th century, both becoming pillars of the German Empire's arms industry and steelmaking prowess. Friedrich Krupp founded the Krupp steelworks in 1811, which later became infamous as a major arms producer for the Imperial German Army and the Kriegsmarine. Concurrently, August Thyssen established his first steel mill in 1871, building a vast vertically integrated industrial empire. Both companies played central roles in Germany's war efforts during World War I and World War II, utilizing forced labor extensively. After the war, Friedrich Krupp AG Hoesch-Krupp and Thyssen AG diversified. The landmark merger in 1999, advised by banks like Deutsche Bank, created one of the world's largest steel producers. Major subsequent divestments and restructurings included the sale of its stainless steel division, Inoxum, to Outokumpu in 2012, and the protracted sale of its elevator division to a consortium led by Advent International and the RAG Foundation in 2020.

Corporate structure

Following the elevator sale, ThyssenKrupp was reorganized into two main decarbonization-focused segments. ThyssenKrupp Materials Services is one of the world's largest materials distributors and service centers. ThyssenKrupp Industrial Components combines businesses like forged technologies and bearings under brands like Rothe Erde and Bilstein. The company holds significant stakes in separate listed entities, including ThyssenKrupp Nucera, a joint venture with De Nora specializing in electrolyzer technology for green hydrogen, and ThyssenKrupp Marine Systems, a leading submarine and naval vessel builder for the German Navy and international clients like the Israeli Navy. The Supervisory board oversees the Executive board, which is led by the Chief executive officer.

Products and services

The conglomerate's portfolio is centered on capital goods and industrial technology. Its steel division produces high-quality carbon steel for the automotive industry, mechanical engineering, and construction. The Industrial Components segment manufactures critical parts such as crankshafts, large-diameter bearings for wind turbines, and suspension components. Through Uhde and Polysius, it is a global leader in chemical plant and cement plant engineering. ThyssenKrupp Marine Systems builds conventional submarines, frigates, and naval electronics. The Materials Services division provides comprehensive supply chain management for raw materials across Europe.

Financial performance

The company's financial trajectory has been marked by significant volatility, heavily influenced by the cyclical steel market and major restructuring costs. The sale of ThyssenKrupp Elevator Technology for €17.2 billion provided a substantial cash injection but drastically reduced annual revenue. Recent financial reports focus on investments in green steel production via hydrogen-based direct reduction plants, supported in part by funding from the German government and the European Commission. Profitability metrics are closely tied to the performance of its decarbonization initiatives and the global demand for industrial machinery.

Environmental and social responsibility

Facing pressure from the European Green Deal, ThyssenKrupp has committed to ambitious climate change mitigation targets, aiming for climate neutrality in its steel production by 2045. Key projects include the tkH2Steel program in Duisburg, which aims to replace blast furnaces with hydrogen-powered direct reduction plants. The company is a participant in various public-private partnerships for green hydrogen infrastructure. Its corporate social responsibility framework also emphasizes vocational training through its own academy and adherence to OECD Guidelines for Multinational Enterprises in its global operations.

Controversies and incidents

The company's historical legacy is burdened by its use of forced labor during the Nazi era and its role as an arms manufacturer for multiple German military regimes. In the modern era, it was embroiled in a major cartel scandal in the 1990s involving price fixing for stainless steel, which led to substantial fines from the European Commission. A tragic accident occurred in 2010 at the Rüttenscheid testing tower in Essen, where an elevator car fell, resulting in fatalities. More recently, the European Court of Justice has been involved in disputes over state aid related to the company's pension liabilities. Allegations of corruption in international deals, particularly within its Marine Systems unit, have also surfaced in media reports.

Category:Companies based in Essen Category:German conglomerates Category:Steel companies of Germany