The largest steelmaker in Germany, ThyssenKrupp AG, still retained plans to sell both of its Steel Americas unit. This was confirmed by its Chief Financial Office Guido Kerkhoff.
The company, which is based out of Essen, Germany, is 'confident' it would be able to dispose of the unit. He added that the company is not preparing a capital increase any time soon. He made these remarks before reporters in Frankfurt early today.
The industrial firm had been in the market to sell its Americas units for nearly a year and a half. The proceeds of the sale would be used to expand its non-steel operations as the company rides out a global decline in steel demand. The decreasing use of steel in the automobile and construction businesses as well as increasing competition from China had caused a reduction in the worldwide price for steel. As a result, in a report by German newspaper Salzgitter AG, the company had cut 1,5000 jobs from its operations just last month.
According to two individuals briefed on the current situation, who sought anonymity for the information, said the company may sell off its US operations and retain its Brazilian unit.
Join the Conversation