ThyssenKrupp in talks with Germany for nearly $6B in steel aid

2020-11-11

Nov. 10, 2020 - ThyssenKrupp is in talks with the German government over an aid package for its struggling steel unit worth at least 5 billion euros ($5.9 billion), well exceeding the group's current market value in a key push to secure its survival.

Chancellor Angela Merkel's government has signaled a willingness to provide financial support to shore up the unit, which is used in products from cars to wind turbine blades, and ensure future domestic production of an environmentally friendly form of steel, according to people familiar with the matter.

While a wide range of aid is still being debated, the steelmaker and politicians are exploring about 2 billion euros in liquidity from a government fund and at least 3 billion euros in grants, said the people, who cautioned the amount is fluid and could still change considerably during the negotiations.

ThyssenKrupp as well as Germany's finance and economy ministries declined to comment.

Once synonymous with German industrial prowess, ThyssenKrupp is fighting for survival. The pandemic intensified deep-seated structural issues at the company, which still employs more than 100,000 people.

Its steel division faces severe problems, with profitability hammered by yawning pension deficits and cheap steel imports from Asia.