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ThyssenKrupp, Tata to combine steel activities

Staff Writer | September 20, 2017
ThyssenKrupp and Tata Steel signed a memorandum of understanding to combine their European steel activities in a 50/50 joint venture.
Industry   A 50/50 joint venture
Their aim is to create a leading European flat steel player to be positioned as quality and technology leader.

The new entity is set to have pro-forma sales of about €15 billion and a workforce of about 48,000, currently at 34 locations. Shipments are envisioned to be about 21 million tons a year.

To be named thyssenkrupp Tata Steel, the planned joint venture will be managed through a lean holding company based in the Netherlands.

It is to have a two-tier management structure comprising a management board and a supervisory board. Both boards are to have equal representation from thyssenkrupp and Tata.

The codetermination structures in Germany, the Netherlands and Great Britain will be retained.

ThyssenKrupp intends to contribute its Steel Europe business to the planned joint venture.

There are also plans for the joint venture to include thyssenkrupp MillServices & Systems GmbH, a steel mill services provider that is part of the Materials Services business.

Tata would add all of their flat steel activities in Europe.