Following the successful IPO of its marine division TKMS, the conglomerate Thyssenkrupp is working to bring additional business units to „capital market readiness“ as it advances its transformation into a pure financial holding company.

As CEO Miguel López explained at the Börsen-Zeitung Private Markets Week, the spin-off of the marine subsidiary resulted in a „value crystallisation of around 1 billion euros“ for Thyssenkrupp shareholders when comparing the company’s market capitalisation before and after TKMS’s market debut. López also emphasised that „important technological progress“ in Europe has often been driven by the defence sector. „With TKMS, we are making our contribution – in non-nuclear submarines and frigates.“

López made a clear case for industrial consolidation, saying that „we need industrial champions in Europe.“ He described himself as „a big fan – if not to say a believer – in such major players.“ These large-scale entities, he argued, would allow Europe to regain the innovative strength it has lost over time. Competition authorities, in his view, have too often focused solely on „maximum competition for the benefit of the consumer.“

López’s remarks echo those of other industry leaders currently forming cross-border alliances. Recently, the European satellite alliance between Airbus, Thales, and Italy's Leonardo, was finalised - as first reported by Börsen-Zeitung. Last year, Leonardo and Rheinmetall established a joint venture to develop a new battle tank. However the trilateral combat aircraft project FCAS involving France, Spain, and Germany appears to be faltering.

Among Thyssenkrupp’s next spin-off candidates, López mentioned Materials Services as well as the automotive supply division. Despite pushing ahead with the restructuring, he stressed that these activities are at „different stages of maturity.“

He also sees a clear need for political action. Europe must not only protect its markets from the growing pressure of „imported cheap steel“ and related products but also provide the automotive industry with clarity on electromobility. At present, production in Europe is declining because consumers lack a solid basis for deciding between electric vehicles and combustion engines. This uncertainty, López noted, is weighing on Thyssenkrupp’s auto supply business.

Ultimately, López envisions a very lean financial holding entity that oversees its subsidiaries via their supervisory boards, and positions itself on the stock market as an attractive „dividend stock.“ „That naturally means the operating subsidiaries must generate corresponding dividends,“ he said. The spin-off of TKMS, López added, serves as a „blueprint“ for future divestments. TKMS remains majority-owned by Thyssenkrupp, with only 49% of the shares currently tradeable – in practice 39%, as 10% are held by the Krupp Foundation.

López expressed optimism that, after several failed separation attempts, Thyssenkrupp will now be able to secure a sustainable future for its struggling steel division through a new partnership. Talks with India’s Jindal Steel are being „very positively received by both policymakers and labour unions,“ he said. López is convinced that Jindal represents „a very good fit“ for Thyssenkrupp Steel. The Indian group owns its own mining operations and already runs a plant in Oman capable of contributing to green steel production.

The Thyssenkrupp CEO also sees an urgent need for action in Europe regarding energy costs, which he considers „far too high“ in Central Europe. While carbon reduction targets serve climate protection, they have also led to energy prices that „are not competitive.“ This, he stressed, is „a major resilience issue,“ since energy prices are „decisive for the outcome“ of steel production. Thyssenkrupp has therefore initiated a new alliance in Brussels for the production of green hydrogen.

Looking at the challenges in the company’s traditional core business, López emphasised that Germany and Europe must face up to „an entirely new level of productivity demands.“ While „Made in Germany“ remains a valued seal of quality, he said, the progress China has made in manufacturing, automation, and digitalisation in Thyssenkrupp’s own plants is remarkable. „The factories there are more modern and productive than ours here in Germany.“ It is therefore time, he said, „to roll up our sleeves.“ In areas such as „energy, labour costs, and bureaucracy,“ China solves problems „in half the time.“