teknolojiarsivi.com
teknolojiarsivi.com December 18, 2017


Thyssenkrupp, Tata Steel Merger Should Not Happen At Any Price: German Minister

21 September 2017, 12:42 | Vickie Mathis

Thyssenkrupp AG's new company logo adorns it's headquarters in Essen Germany in this

Thyssenkrupp AG's new company logo adorns it's headquarters in Essen Germany in this

Thyssenkrupp and Tata Steel struck a preliminary deal on Wednesday to merge their European steel operations in a 50-50 joint venture to create the continent's No.2 steelmaker after ArcelorMittal.

With this agreement, Tata's plants in the Netherlands and United Kingdom will be combined with Thyssenkrupp's German assets and would be managed through the entity's headquarters in Amsterdam.

"The two joint venture partners expect that leveraging the cost synergies across the entire entity will require a reduction in workforce over the years ahead by up to 2,000 jobs in administration and potentially up to 2,000 jobs in production".

The two companies said they intent to remain as long-term partners and continue the present network configuration of all the upstream hubs in the proposed joint venture.

Commenting on the MoU, Tata Steel Chairman N. Chandrasekaran said: "The Tata Group and thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values".

Earlier, labor representatives, who have half of the seats on Thyssenkrupp's supervisory board, had also expressed concern over job losses.

Koushik Chatterjee, group executive director, Tata Steel, said the deal was an "important milestone" for Tata Steel Group in terms of its wider European portfolio strategy.


Tata Steel on Wednesday said it has signed an agreement with German steel giant Thyssenkrup to merge their steel operations in Europe in a 50:50 joint venture company. He argued that cost synergies in the range of EUR400 to EUR600 million per annum may be realised through the integration of commercial functions, R&D and other supporting activities.

Mr Hiesinger said that by combining their operations, the two companies are "tackling the structural challenges of the European steel industry".

There is undoubtedly an industrial logic behind a partnership which would create the second biggest steel business in Europe with all the benefits that could bring for the UK. "As a priority, we will be pressing Tata to demonstrate their long-term commitment to steel-making in the United Kingdom by confirming they will invest in the reline of Port Talbot's Blast Furnace No 5".

The European steel industry has been battling to cope with lower prices as a result of a flood of cheap imported steel, mainly from China, and the...

The deal could have sweeping implications for the industry and for 8,000 workers employed in the United Kingdom in particular.

London hopes the deal will secure the future of Tata's 4,000-strong site at Port Talbot in Wales, which sits at the heart of the local economy.



Other News

Trending Now

Theresa May Chides Trump For Hasty Response To London Tube Attack
And a police spokesperson told CNN that Trump's comment is "pure speculation given we don't know who involved". However, the high court justice permits the ban to go into effect last month, but still, the case is pending.

FSU falls again in the AP Poll despite not playing
Clemson piled up 578 yards of total offense, including 297 on the ground, in a 47-21 victory at Louisville on Saturday night. Ohio State ran all over the Sooners with 291 rushing yards in a 45-24 win in Norman, Oklahoma, last season.

Trump Wants Massive Military Parade in DC on July 4
One thing Trump may want to consider: the damage a tank could do to the asphalt as it rolls down Pennsylvania Avenue. It is unclear whether or not Trump's July 4 military parade would be an annual event.

Democratic Senate leader calls Trump's 'Rocket Man' remark at United Nations 'risky'
He is scheduled to address the world body, which he has criticized as weak and incompetent, on Tuesday. McMaster also said the reports are false. "Too bad!" Trump said in a Twitter post on Sunday morning.

Hurricane Irma's Caribbean destruction seen from space
Irma was downgraded to a tropical storm on Monday, after it had wreaked havoc along Florida's west coast. Water levels are expected to rise between 10-15ft in the areas at risk.

CAR Says Ryanair Passengers Entitled To Refund
If you are affected you should have received an email, otherwise your flight should remain unchanged. The airline has announced cancellations of between 1,500 to 2,000 flights over the next six weeks.

J&K: 3 civilians injured in ceasefire violation by Pakistani forces
BSF jawan, Brijendra Bahadur Singh, was hit by a bullet at his abdomen, who later succumbed during evacuation process. By midnight, the entire border in Arnia sector had become alive with BSF retaliating at all places.

WWE Posts Storyline Update on Vince McMahon
Last summer he appeared on Eric Bishoff's podcast, Bischoff on Wrestling , and explained why Owens is such a special talent. During a segment with Kevin Owens , The Chairman Of The Board got demolished.

Ryan says Trump made right call on immigrants
Ryan said only that, "What I'm not going to do is get ahead of the people who will be negotiating this bill in our conference". On lowering the top corporate rate, Trump has called for decreasing it to 15 percent, down from the current 35 percent rate.

Secretary Kobach To Helm Second Meeting Of Election Panel
At the Old Town rally, people stepped up to speak against Kobach's way of handing the state's voting process. DUNLAP: It oversimplifies the model to say that there's a direct path to fraud through the driver's license.