A bitter restructuring row has left the firm’s steel division waving goodbye to its CEO, chair and five directors.
ADVERTISEMENTBernhard Osburg, the CEO of Thyssenkrupp’s steel unit, has announced his decision to leave the company - along with Sigmar Gabriel, head of the supervisory board.
Also departing are two other executives at the steel unit and three individuals on the supervisory board.
The resignations were sparked by an ongoing takeover battle at Thyssenkrupp, following the partial sale of the steel division to Czech billionaire Daniel Křetínský.
In April this year, it was announced that Křetínský would buy a 20% stake in the steel business, and he could acquire a further 30%.
As the steel unit is earmarked to become independent, disagreements have arisen over how much money the parent company should give to its offshoot.
"The fear is that we will be given as little dowry as possible, so that at the end of the day the insolvency administrator will be at our door," said Ali Güzel, chairman of the Works Council at the ThyssenKrupp Duisburg/Beeckerwerth site earlier this month.
"The risk of insolvency is very high," he continued, quoted by German outlet Welt.
According union leaders, steelworks represent the heart and the history of Thyssenkrupp.
Competition from cheaper Asian manufacturers
However, the CEO of the parent company, Miguel Ángel López Borrego, appears reluctant to pour high sums into the division.
The unit is struggling in the face of competition from cheaper Asian manufacturers, a situation aggravated by Europe's energy price spike.
Lower demand from European carmakers has also dented sales, while climate requirements require high investments.
Although restructuring plans are still being negotiated, job cuts are expected - a source of anxiety for the division's 27,000 workers.
Knut Giesler, the regional leader of IG Metall union, said on Thursday that Thyssenkrupp’s management had provoked "unprecedented chaos".
In a public letter, departing chair Sigmar Gabriel noted that the parent company had undermined Osburg in a "serious breach of trust."
Dennis Grimm, the steel unit's chief technology officer, will take over from Osburg as interim CEO.
