Losing its steel grip

Germany’s largest steel producer ThyssenKrupp AG is all set for a paradigm shift in business, with plans to abandon its two-century-old steelmaking unit. An effort to reshape strategy following the global economic slump that resulted in three consecutive annual losses, ThyssenKrupp is looking to rebuild itself as a ‘diversified industrial group’. Another reason could be that it’s elevators and car components businesses fetch it higher revenue as compared with steel, which fetches only 28%. After the sale of its US plant last year, it may sell its VDM and AST stainless steel businesses as well; job cuts have already begun at AST. With heavy debt on its head, looks like letting go of the metal is ThyssenKrupp’s only chance to get back on track.