thyssenkrupp welcomes approval of collective agreement for planned steel joint venture

thyssenkrupp welcomes the clear approval given by IG Metall members for the collective agreement on the joint venture in which thyssenkrupp and Tata Steel plan to combine their European steel operations. IG Metall announced the results of the poll today. On December 21, 2017 thyssenkrupp and its employee representatives had agreed to enter into a collective agreement which among other things safeguards jobs until September 2026. After IG Metall’s collective bargaining committee recommended accepting the agreement, members were invited to vote by February 2, 2018.

Oliver Burkhard, CHRO of thyssenkrupp AG: “The members of IG Metall at the steel sites have decided by a clear majority in favor of the collective agreement and this will give the planned joint venture a strong future. This joint result does justice to the interests of the company and gives our employees security. That is in line with our corporate culture.”

Our intended joint venture partner Tata Steel is also currently in the process of dialogue with its employee representatives. In parallel with this due diligence is under way. In addition independent expert opinions have been commissioned by thyssenkrupp on the economic viability of the joint venture and the UK pension liabilities of Tata Steel Europe. The signing of the joint venture agreement is targeted for early 2018. Once regulatory approval has been received, the closing could take place at the end of 2018.

thyssenkrupp had announced the formation of a joint venture of its European steel activities with Tata Steel Europe in September. The aim of the joint venture is to create a leading European flat steel provider and position it as a quality and technology leader. The new company would have pro forma sales of roughly €15 billion and employ around 48,000 people.