ThyssenKrupp

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ThyssenKrupp AG
Type Public
(ISIN: DE0007500001, FWB: TKA, LSE: THK)
Founded 1860
Headquarters Flag of Germany Essen, Germany & Duisburg, Germany
Key people Dr. Ekkehard D. Schulz, Chairman of the Executive Board
Dr. Gerhard Cromme, Chairman of the Supervisory Board
Industry Steel
Capital Goods
Engineering
Products Steel, stainless products (Nirosta), automotive technologies, elevator systems, marine systems, ship-building, services
Revenue ▲€47 billion in 2006
Net income ▲$1.227 billion USD (2005)
Employees 188,000 (est.) (2006)
Website www.thyssenkrupp.com

ThyssenKrupp AG (ISIN: DE0007500001) is a large German industrial conglomerate, with about 192,000 employees. The corporation consists of 670 single companies worldwide. ThyssenKrupp is one of the world's largest steel producers. It operates worldwide in three business areas: steel, capital goods, and services. The steel unit concentrates on carbon steel and stainless steel, while the capital goods unit consists of three segments: elevators, automotive (parts, sub-assemblies, and modules), and technologies (machine tools, large-diameter bearings, and industrial doors). The services sector provides tailor-made materials, environmental services, mechanical engineering, and scaffolding services. The company is the result of the 1999 merger of Thyssen and Krupp. It is registered in Essen and Duisburg (both Germany). As of 2005 23.58% of the company shares are held by the Alfried Krupp von Bohlen und Halbach Foundation.

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[edit] Products and sales

ThyssenKrupp Building in Downtown Dusseldorf
ThyssenKrupp Building in Downtown Dusseldorf

ThyssenKrupp generates 33% of its consolidated sales on its home market. The rest of the EU (European Union) (28%) and the NAFTA region (21%) are the key foreign regions for its business outside Germany. ThyssenKrupp companies hold leading positions with their products in numerous international markets.

[edit] Mergers and acquisitions

ThyssenKrupp itself is the result of the 1999 merger of Thyssen and Krupp. In 2005, ThyssenKrupp acquired Howaldtswerke-Deutsche Werft (HDW) in Kiel from One Equity Partners. ThyssenKrupp Marine Systems (TKMS) is now the most important European group of shipbuilders. In addition to HDW, Blohm + Voss in Hamburg as well as Nordseewerke at Emden are also subsidiaries of TKMS. One Equity Partners holds 25% of the TKMS shares.

In December 2005, ThyssenKrupp acquired 60% of Atlas Elektronik from BAE Systems, with EADS acquiring the remaining 40%.

[edit] New Plant

On May 11, 2007, ThyssenKrupp announced an investment of 3.1 billion euros (US$4.19 billion) for a new steel processing facility in southern Alabama.[1] The announcement came after several months of competition between a site on the Mississippi River in Convent, Louisiana, and a site on the Tombigbee River, near Mount Vernon, Alabama, in Mobile County, about 30 miles north of Mobile. The hot strip mill will process steel slabs manufactured at ThyssenKrupp's steel mill in Brazil. The mill, which will be operational in 2010, is expected to employ 29,000 people during construction, and 2,700 people once operational.

[edit] Controversies

[edit] Price Fixing

In November 2006, five lift manufacturers, including ThyssenKrupp, were found guilty of price fixing by the EU, over 9 years,[2] along with Otis Elevator Co., Schindler Group, Kone Oyj and Mitsubishi Elevator Europe. A few months later on February 21, 2007, ThyssenKrupp was fined US$629 million (479 million euros) by the EU (Otis was fined $295 million).[2] The EU Competition Commission reported that the companies had worked to rig bids for procurement contracts, share markets, and fix prices between at least 1995 and 2004.[2] The Commission reported that the companies "did not contest the facts" found by EU regulators, noting none of the accused requested a hearing to answer the allegations; the total fines of US$1.3 billion were viewed as an effort by EU Competition Commissioner Neelie Kroes to wipe out cartels.[2]

[edit] Deaths

On December 6, 2007, a fatal fire accident inside a plant in Turin, Italy caused the death of seven steelworkers. It seems that a damaged manifold bursted and showered the workers with flaming coolant oil; they tried to extinguish the flames with water, creating a flash fire.[3] The Italian magistrates are still examining the causes of the fire, with workers describing slack safety measures to investigators. During the investigations, a document was seized from Harald Espenhahn (CEO of the Italian division of Thyssenkrupp). The document states that the only survivor should be taken to court, because he is accusing Thyssenkrupp in television. The document also states that the fire was due to the fact that the workers were distracted.[4] The accident happened after four hour of overtime and when the workers have tried to use some extinguishers around, they found those depleted. The day after a technician filled every extinguisher in the factory, as he told to judges[5]

[edit] See also

[edit] Notes

  1. ^ ThyssenKrupp Supervisory Board gives green light to steel mill in the USA
  2. ^ a b c d "Elevator makers fined $1.3B for price-fixing" (news), Purchasing.com - Reed Business Information, Feb. 2007, webpage: Purchcom-8053.
  3. ^ [1] (Italian)
  4. ^ La Thyssen contro il sopravvissuto "Lo denunceremo" (Italian)
  5. ^ [2] (Italian)

[edit] External links

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