Thyssenkrupp is accelerating a carefully orchestrated retreat from capital‑heavy steel manufacturing in Europe while doubling down on defence and automotive technology – a strategy that is taking physical shape on both sides of the Atlantic. The Essen‑based conglomerate’s auto‑parts subsidiary Bilstein is adding 100 jobs at its Hamilton, Ohio headquarters, bringing the local workforce to 700, as it absorbs the steering‑systems division and rides a strong North American sales cycle. The US expansion comes as the group closes its Terre Haute plant by March 2027 and funnels all production to Ohio, making Hamilton the central hub for its chassis‑technology business. The North American segment generated roughly €2.1 billion in revenue in the 2024/25 financial year.
Meanwhile, the marine‑defence unit TKMS, already named preferred bidder for a 12‑boat 212CD submarine programme for the Canadian navy, has started locking in local partners to meet the 70% domestic‑content requirement. Gastops of Gloucester is building a support centre for the submarines’ automation systems and will develop a digital twin of the entire fleet, while Kongsberg Geospatial of Kanata takes on the combat‑management system support. The construction contract alone is valued at around €20 billion, and with life‑cycle maintenance the total could swell to as much as €62 billion. TKMS expects the deal to be signed by the end of 2027, with the first delivery scheduled for 2034 – making it a long‑term growth driver rather than a near‑term revenue boost.
On the steel side, Thyssenkrupp is pressing ahead with portfolio cleansing. Salzgitter AG is taking full ownership of Hüttenwerke Krupp Mannesmann, acquiring the stakes held by Thyssenkrupp Steel Europe and Vallourec. Salzgitter plans to integrate the mill by the end of 2028 and convert it to climate‑friendly electric‑arc furnaces. For Thyssenkrupp, the exit frees up capital for higher‑margin industrial technology and defence businesses – a shift that has already boosted the share price.
Should investors sell immediately? Or is it worth buying Thyssenkrupp?
The stock closed Monday at €11.53, reflecting a weekly decline of 3.84% but a year‑to‑date gain of 19.21%. The market capitalisation stands at €7.18 billion. The share trades 15.85% above its 200‑day moving average of €9.95, underscoring a solid uptrend since spring. The relative strength index of 55.1 signals neutral territory, while a 12.95% gap remains to the 52‑week high of €13.24. The 30‑day volatility of 51.81% points to continued nervousness around the stock.
Investor attention this week is fixed on the European Commission’s planned proposals for a reform of the Emissions Trading System (ETS), due on 17 July 2026. The aim is to cut greenhouse‑gas emissions by 90% from 1990 levels by 2040. German steelmakers are split: electric‑arc furnace operators such as Georgsmarienhütte want a freeze on carbon prices, while Salzgitter – which is betting heavily on hydrogen‑based production – warns against diluting the cap‑and‑trade system. Thyssenkrupp itself is already trialling hydrogen for heat generation in Duisburg, and a Max Planck Institute study suggests a new nickel‑oxide catalyst process could halve conversion time and lower temperature requirements in stainless‑steel production. Any decision that strengthens carbon‑leakage protection would relieve pressure on Thyssenkrupp’s steel unit, but the submarine contract remains a wholly independent value driver that will unfold over the next decade.
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