Thyssenkrupp Drops Jindal Sale Plan, Pins Hopes on Green Steel and a Shrinking Workforce

Thyssenkrupp has pulled the plug on months of negotiations to sell its steel division to Jindal Steel International, opting instead to restructure the business from within and prepare it for a future as a standalone entity. The abrupt about-face sent shares soaring — the stock has surged roughly 43 percent over the past 30 days to €11.12, with another 6 percent gain on the day of the announcement.

Management cited an improving European market backdrop and the progress of an internal turnaround program as reasons for the change of heart. A new collective wage agreement with IG Metall, running through autumn 2030, has cleared the path for deep cuts. The plan calls for slashing production capacity to around nine million tonnes, with approximately 11,000 jobs either eliminated or outsourced.

Critics argue the abandoned sale represents a missed opportunity to offload a highly cyclical business. Unions, meanwhile, are demanding a definitive end to the Jindal talks.

Duisburg’s Green Steel Bet Moves Ahead

Even as the corporate strategy shifts, work continues on the ground. Thyssenkrupp is building a direct-reduction plant in Duisburg that will produce 2.5 million tonnes of directly reduced iron annually using two novel melters. Commissioning is scheduled for 2027.

Should investors sell immediately? Or is it worth buying Thyssenkrupp?

The project is expected to cut greenhouse gas emissions by more than 3.5 million tonnes of CO? per year, with financial backing from the European Union. Management is leaning on this political tailwind to justify the solo restructuring path. Operationally, the division has also secured new orders: from 2026, Thyssenkrupp will supply steel for BMW’s new iX3 model.

The Cost of Transformation

The overhaul is expensive. In the first quarter alone, Thyssenkrupp posted a net loss of €334 million on revenue of €7.2 billion, with the steel division’s restructuring swallowing over €400 million. CEO Miguel Ángel López will present first-half results on May 12, offering investors a clearer picture of how restructuring costs are weighing on the operating business.

A Broader Industrial Landscape

Thyssenkrupp’s move comes amid a day of stark contrasts across European industrials. While the Essen-based group pivots away from a sale, others are riding tailwinds of their own. Hochtief hit a fresh all-time high of €545, up over 60 percent year-to-date, fueled by demand for data-center infrastructure. Lufthansa, despite facing €1.7 billion in additional kerosene costs, held its profit target and saw its shares jump 6 percent. Rolls-Royce confirmed its 2026 guidance, with defense deliveries up 20 percent and power systems orders rising 50 percent.

Thyssenkrupp at a turning point? This analysis reveals what investors need to know now.

For Thyssenkrupp, the next milestones are concrete: the Duisburg direct-reduction plant is advancing, and the sale of its HKM stake to Salzgitter is slated for June 1. The December 2025 restructuring wage deal provides the foundation. Deutsche Bank and Jefferies have maintained buy ratings with price targets of €14.50 and €13, respectively.

Whether the new strategy of independence over divestiture will pay off remains to be seen. The May 12 interim report will offer an early test of credibility.

Ad

Thyssenkrupp Stock: New Analysis - 7 May

Fresh Thyssenkrupp information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Thyssenkrupp analysis...

en | DE0007500001 | THYSSENKRUPP | boerse | 69286975 |