Thyssenkrupp shares are higher Friday, as the German industrial steel conglomerate announced the separation of its shipbuilding unit from the broader industrials sector of the business. This will allow the firm more freedom to make changes to one part without it affecting the other.
It would also make any planned sale of the shipbuilding unit easier to manage, without affecting the finances of its other business activities.
By 1245 BST, Thyssenkrupp shares were up 0.18% at €18.96. The stock has been moving mainly lower in recent weeks.
Thyssenkrupp restructure plans
Thyssenkrupp said Friday, that it was restructuring the business and reorganising its marine and plant engineering business areas, by separating them.
“We have now undertaken the necessary steps to enable Industrial Solutions to concentrate entirely on plant construction,” said Thyssenkrupp’s CEO, Guido Kerkhoff.
“Marcel Fasswald has the clear task of ensuring that Industrial Solutions achieves the much-needed turnaround with his extensive experience and expertise in plant construction. Oliver Tietze, a manager with many years of experience in the company, will support him,” Kerkhoff added.
That change also means that the existing executive team of the Business Area Industrial Solutions will leave their roles and Thyssenkrupp. CEO Peter Feldhaus and CFO Stephan Gesin, will both leave their current roles on October 1st.
“The Executive Board of Thyssenkrupp AG explicitly thanks the two former Executive Board members Peter Feldhaus and Stefan Gesing for their long-standing and trusting cooperation. During their time at Thyssenkrupp, both have rendered outstanding service to the company in a wide variety of roles and have accepted responsibility even in difficult situations,” Kerkhoff said.
Shipbuilding unit spin off
The restructure comes as Thyssenkrupp is already axing some 2,000 jobs in its industrials division. There are also suggestions that the German firm could opt to sell its shipbuilding unit, leaving it free to focus entirely on the turnaround of its once successful industrials business.
For now, however, Thyssenkrupp said Rolf Wirtz will be run the Marine systems unit will be run by Rolf Wirtz, who will report to Oliver Burkhard, member of the Thyssenkrupp Executive Board.