Frankfurt: Thyssenkrupp AG is to set up a joint working group of board members and labour representatives to help implement the plan to merge with Tata Steel, it said in a statement, issued after a supervisory board meeting.
The meeting was held after Thyssenkrupp top management’s move this week to sign a memorandum of understanding with Tata Steel for a 50-50 joint venture.
If approved, it would create Europe’s second-biggest steelmaker after ArcelorMittal, with combined sales of about €15bn.
The working group will consist of members of the executive boards of Thyssenkrupp AG, Thyssenkrupp Steel Europe, which is the unit for the steel activities within the wider group, representatives of Thyssenkrupp’s works councils and the works councils of the steel sites.
The working group will be headed by Markus Grolms, deputy chairman of the supervisory board of Thyssenkrupp AG and Oliver Burkhard, member of the executive board of Thyssenkrupp AG, where he is chief human resources officer, it said.
Thyssenkrupp AG Chief Executive Heinrich Hiesinger depends on the support of labour representatives, who hold half of the 20 seats on the group’s supervisory board and have fiercely opposed the deal with Tata Steel.
On Friday, several thousand steel workers took to the streets of Bochum in Germany to protest against the deal, which would include up to 4,000 job cuts, about 8 percent of the combined workforce.
