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Friday, May 13, 2011

ThyssenKrupp eyes stainless steel tie-ups in revamp, (TKAG)

ThyssenKrupp (TKAG.DE), Germany's biggest steelmaker, is exploring options including strategic tie-ups or a market listing for its stainless steel arm under a radical revamp that will reshape the conglomerate. ThyssenKrupp said last week it planned to hive off its stainless steel unit, Europe's largest producer, as part of a 10 billion euro ($14 billion) divestment plan that will also refocus its auto parts arm, under pressure from Asian rivals. Presenting details of the overhaul on Friday after forecast-beating results, the group said the stainless industry was suffering from overcapacity and was ripe for deals. "The stainless steel market faces a consolidation process for which our decision provides further options. With separation from ThyssenKrupp, Europe's market and quality leader in the stainless steel business will become independent," Chief Executive Heinrich Hiesinger told reporters.