Management in place, thyssenkrupp Tata Steel BV now needs to engage with unions

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26 Aug, 2025 12:21

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With the top management of the proposed joint venture between thyssenkrupp and the European unit of Tata Steel in place, the 'trouble' that trade unions in Germany were warning about may have been quelled for now.

But the new management announcement sets the stage for several rounds of negotiations between trade union leaders and senior executives of the JV.

"The talks will be contentious, and will bring out several issues," said a senior executive from the industry.

The talks will be crucial for the JV, which is already under a probe by the European Commission, to start operations and avoid further delay.

The two sides had signed definitive agreements on of the deal in June and expected to complete the process by December. The two companies had first signed a MoU to form the JV in September 2017.

Union talk

In early December,  a union leader had warned in an interview to Reuters that if the new management is not announced soon, "..we will make trouble."

"There is a lot to talk about, but we don't have anyone to talk to, "Tekin  Nasikkol, head of works council of thyssenkrupp steel unit, told Reuters. 

Sources told Moneycontrol the talks will centre around wage hikes and assurances against job cuts. "The German unit is also wary about subsidies to the UK units of the proposed JV," said an executive.

The UK units are currently under Tata Steel Europe, which has underperformed its German partner. Any concession to the UK units could bear on its German half.

Named thyssenkrupp Tata Steel BV, the JV will employ 48,000 across 34 sites and will produce 21 million tons of steel a year. Its revenue will be about 17 billion Euros.

EU probe

The proposed venture is currently under a probe by the EU, which is studying if the JV will limit customers choices in the local steel industry.

The probe is specifically looking into three segments - speciality flat carbon steel and electrical steel products, automotive steel and steel used by the packaging industry.

The JV has also been delayed due to a leadership crisis at thyssenkrupp, which saw its Chairman and CEO exiting in quick succession, in June. The seats were filled only by September.

The JV will be led by Andreas Goss, who is currently CEO of the latter's steel division. Hans Fischer, the current CEO of Tata Steel Europe, will be the Deputy CEO & Chief Technology Officer of the new company. Sandip Biswas, who is currently the Group Executive Vice President, Finance, Tata Steel Limited, is the designated Chief Financial Officer.