Yesterday, the entire advisory board of Germany’s ThyssenKrupp Steel Europe, led by former German Economy Minister Sigmar Gabriel, resigned in protest over the actions of Miguel Lopez, the CEO of the whole ThyssenKrupp company.
The profound crisis in Germany’s construction sector and in the automotive sector are two main reasons for the crisis of the steel sector, which in spite of its undeniable problems is also being forced by ideologues to do the transformation to “green steel.” For that, the German Minister of Economy Robert Habeck (Greens) earmarked €2 billion in government support for ThyssenKrupp Steel Europe, however investments in the range of €10-15 billion over the coming 10 years are required. The representatives of the 27,000 steel workers support this idiotic plan, as does Lopez. However, he also wants to cut production and employment at the steel branch substantially to make it attractive for further takeover. (So far, 20% of the company has already been sold to the Czech tycoon Daniel Kretinsky.) The three CEOs of the steel branch rejected Lopez’s streamlining plan and Lopez fired them. Yesterday’s resignations by the four advisory board members were in response to Lopez’s action.