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Frankfurt . The German Thyssenkrupp and the Indian Tata Steel have signed Saturday an expected and definitive agreement for the creation of a joint steel company that will mark one of the most radical changes in the world. European steel industry in more than a decade.
The final agreement is produced after months of negotiations since the beginning of an agreement was announced in September. The two steel giants hope this will help them cope with the challenges of the volatile steel industry, including excess capacity.
With the agreement of major importance in the European steel sector since the acquisition of Arcelor by Mittal in 2006, Thyssenkrupp Tata Steel, a 50% joint venture, will have approximately 48,000 workers and a turnover of about 17,000 million euros (19,900 million dollars).
Based in the Netherlands, it will become the second largest steel manufacturer in the Old Continent after ArcelorMittal. The operation is at the heart of Thyssenkrupp's CEO Heinrich Hiesinger's plans to convert the German industrial conglomerate, which manufactures submarine steel into a technology company.
Natarajan Chandrasekaran, President of Tata Steel He stated that the operation would create "a strong pan-European steel company with a strong and competitive structure".
"The joint venture is not just meeting the challenges of the European steel industry," said Hiesinger. "This is the only solution to create significant additional value of about 5,000 million euros ($ 5,823 million) for Thyssenkrupp and Tata Steel because of the joint synergies that can not be achieved in a single company. independent scenario. "
President Natarajan Chandrasekaran said in a separate statement that the operation would create "a strong pan-European steel company with a strong and competitive structure".
The agreement comes when European steelmakers face tariffs of 25% on their exports to the United States, its largest market. This could cause the local market to absorb more steel from countries that redirect exports to Europe.
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