Thyssenkrupp Steel unit to terminate supply contract with HKM - union
The IG Metall union, which represents the largest German steelmaker T hyssenkrupp Steel Europe, announced on Thursday that it intends to end a contract of supply with HKM. This has fueled uncertainty about the future of this joint venture.
HKM, a joint venture of TKSE, Salzgitter, and Vallourec that is a 50-30-20, faces closure following a recent failure to find a buyer. This would be a huge blow for the approximately 3,000 employees.
The union stated in a document seen by that TKSE supervisory board would meet on Friday. HKM workers will also protest at TKSE headquarters the same day.
TKSE confirmed that its supervisory board will meet on Friday but declined to elaborate.
Salzgitter & Vallourec declined comment.
Thyssenkrupp wants to sell another 30% of TKSE shares to Czech billionaire Daniel Kretinsky. Last year, Kretinsky bought a 20% stake.
The German group said that it would have to cut or outsource 11,000 of TKSE’s 27,000 employees in order to regain its competitiveness, as the sector is structurally challenged due to high energy prices and fierce competition from Asia.
Karsten Kaus, IG Metall's representative, said that although TKSE can cancel the contract with HKM at the end of 2025 but purchase agreements will remain in place for seven more years. (Reporting done by Tom Kaeckenhoff, Christoph Steitz. Thomas Seythal, Mark Potter and Thomas Seythal edited the report.
(source: Reuters)
