The German industrial conglomerate Thyssenkrupp is currently grappling with simultaneous challenges across several key business units. A perfect storm of import pressure, unexpected subsidiary losses, and protracted regulatory processes is testing the company’s resilience.
Import Surge Threatens European Steel Production
A primary concern is the severe pressure on Thyssenkrupp’s specialty steel division, which produces grain-oriented electrical steel. This material is a critical component for transformers and is therefore essential for the expansion of European power grids. However, this strategic segment is now under siege. Since 2022, imports—primarily from Asia—have tripled, with prices often undercutting European production costs. Asian suppliers now command over half of the European market volume, a situation exacerbated because they currently fall outside existing EU trade protection measures.
The response from Brussels, while initiated, may be too slow to prevent immediate damage. On April 3, division head Marie Jaroni appealed directly to the European Commission for effective trade safeguards to protect the domestic industry from structural harm. The EU has launched a safeguard investigation, which Jaroni called an “urgently necessary first step,” while simultaneously urging faster action.
The timeline presents a major problem: new rules could not take effect before July 1, 2026. This will be too late to avert a planned four-month complete production halt at the French site in Isbergues, scheduled to begin in June. Approximately 1,200 jobs in Germany and France are at risk. Thyssenkrupp Steel Europe and Poland’s Stalprodukt SA remain the last European producers of this specialized material.
Hydrogen Venture Nucera Delivers Major Setback
Compounding the steel division’s troubles are significant difficulties at the hydrogen subsidiary, Thyssenkrupp Nucera. Unplanned retrofit costs for already-delivered modules and a dissolved pilot contract in the United States have created substantial financial holes. For the current fiscal year, Nucera now anticipates an operating loss between €30 million and €80 million.
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The company has consequently downgraded its group sales forecast to a range of €450 million to €550 million, down from an original target of €500 million to €600 million. The most drastic decline is within the core hydrogen segment itself, where expectations have plummeted from €459 million the previous year to just €120 million–€170 million.
Portfolio Restructuring Provides a Silver Lining
Amid the turmoil, Thyssenkrupp’s portfolio transformation continues to advance. In a positive development, the assets of Thyssenkrupp Automation Engineering—comprising around 650 employees and ten sites across Europe and North America—are being transferred to Agile Robots. The Munich-based firm specializes in AI-driven robotics solutions. The unit will subsequently operate as Krause Automation within the Agile Robots Group.
All eyes are now on two near-term developments. Nucera is set to release its next interim report on May 12. Furthermore, the market is watching to see whether months-long negotiations with Indian steel giant Jindal Steel will conclude successfully or fail, as recent insider suggestions have hinted.
The long-term outlook for grain-oriented electrical steel demand remains strong, with studies projecting global need to triple by 2050. However, Thyssenkrupp’s ability to capitalize on this growth potential from a weakened European production base will be determined in the coming months.
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