For more than a decade, industrial icon Thyssenkrupp doesn't seem to have known which direction to go in. But regardless of whether as a group, a group of companies or a financial holding company – its raison d'être is still not secure. The reason for this is the lack of competitiveness of the operating businesses. This has been discussed for years, but has still not been remedied. The balance sheet total fell by a third between 2011 and 2024, but there can be no talk of a healthy shrinkage.

Following the billions in mis-investments in the overseas steel business, the newly appointed Thyssenkrupp CEO Heinrich Hiesinger was initially tasked with saving the company from bankruptcy in 2011. His strategic plan to shed around a quarter of sales and 35,000 of the 177,000 employees at the time proved unsuccessful. At the same time, the former Siemens Executive Board prepared to form a group from the independent divisions under the holding umbrella. What was sold as an offensive strategy was, however, pure defence, as the Swedish financial investor Cevian had bought into the company in the meantime.

In autumn 2019, Supervisory Board Chairwoman Martina Merz took the helm. She returned to the holding structure, defined thyssenkrupp as a group of gompanies and, in line with Cevian, set herself the task of splitting up the conglomerate. Merz sorted out businesses with a turnover of 6 billion euros and 20,000 employees into a run-off unit. Of the remainder, only the materials trading business and the industrial components division were given a provisional guarantee of continuity.

The steel and marine businesses were to be absorbed into the respective sector consolidation, while partners were sought for the businesses of the Automotive Technologies division. This was inevitably preceded by the operational recovery of the businesses, financed with the proceeds from the sale of the lucrative lift division. However, the lofty goals could not be realised. Instead, Thyssenkrupp burnt a lot of money – without the business becoming competitive.

Miguel López has been in office since May 2023, with a contract recently extended until May 2031. Like his predecessors, he has also reorganised the portfolio, but of course the business has not become more profitable as a result. López is not sparing with pithy words when it comes to future prospects. In fact, however, he is continuing the course set by Merz.

In future, all operating units are to finance themselves independently on the market, and Thyssenkrupp only wants to retain the say with majority shareholdings. The only exception is steel, which Thyssenkrupp wants off the balance sheet. Even though López has managed to get Czech billionaire Daniel Křetínský on board as a co-investor for the steel division, this is far from a solution to the steel problem.

It is still unclear how much of a dowry thyssenkrupp will give the unloved subsidiary on its way to independence, and whether the business can be restructured at all in view of the deteriorating conditions. Instead of consolidation, the marine division is now being spun off, with the Essen-based company wanting to retain 51%. Materials Trading is likely to warm up as the next IPO candidate. The automotive units and the green technology businesses, on the other hand, still have a long way to go before they are ready for the capital market.

It is not surprising that the realisation of the individual parts is well received by investors. They are betting that the sum of the individual parts is worth more than the group as a whole. However, selling this as a concept for the future seems bold. The truth is that thyssenkrupp lacks the financial resources to lead the respective businesses into a prosperous future. The entire concept stands or falls with the costly reorganisation of the steel division.