“Jewel Under Value”
Thyssenkrupp Marine Systems boss pushes for spin-off
04/09/2023, 2:50 p.m
Thyssenkrupp is apparently planning to let its armaments division off the leash. Division boss Burkhard currently considers the time ideal for this. The order books are full. And with the upgrade of the Bundeswehr there is additional potential.
According to Oliver Burkhard, head of Thyssenkrupp’s armaments division, the momentum for Marine Systems to become independent has seldom been as good as it is now. “Marine Systems is a jewel – but at Thyssenkrupp it has so far been undervalued,” said Burkhard of the “Frankfurter Allgemeine Sunday newspaper” (FAS). Order books and production halls are well filled.
According to him, different scenarios are conceivable when Marine Systems aims to become independent. Burkhard cited a spin-off as an example. In that case, Thyssenkrupp shareholders would get shares in a new, valuable company. The green transformation of the steel division requires immense resources, Burkhard explained. At the same time, Marine Systems needs growth investments. Everything at the same time is not possible.
“We are most likely to get investments when we can act independently,” says Burkhard. “I am convinced that if you let our marine business go free, it will have real added value.”
To do this, take a very close look at all the options. “We need a valuable solution for Germany, for the workforce, for customers and also for Thyssenkrupp shareholders,” Burkhard explained in an interview with FAS. “When the radar technology manufacturer Hensoldt split off from Airbus, the federal government even got involved. I don’t think that’s necessary for us. And even when an American financial investor was allowed to join Hensoldt, there were no concerns about this. Such concerns I don’t see it with us either.”
Hope for Bundeswehr special fund
Reuters reported earlier this week, citing insiders, that the industrial group Thyssenkrupp was pushing ahead with its plans to spin off the marine subsidiary. Burkhard has had a number of talks with potential buyers over the past few weeks. After the most recent meeting of the supervisory board, the employee representatives had backed the plans for the marine subsidiary with around 6,500 employees to become independent.
Thyssenkrupp Marine Systems has locations in Kiel, Hamburg, Bremen and Emden. Last year, the company also took over the Wismar site. However, there are still no orders for production there, which is why Thyssenkrupp is still reluctant to invest, Burkhard told FAS. With corresponding orders, up to 1000 more employees could work at the location in Mecklenburg-Western Pomerania. According to Burkhard, Thyssenkrupp has “justified hope” that “part of the special assets” for the Bundeswehr totaling 100 billion euros “will eventually reach us.”
In the past, Thyssenkrupp Marine Systems had held talks with both the Lürssen shipyard in Bremen and the Italian group Fincantieri. Lürssen separated its naval business from the yacht business in October 2021 and spun it off into the company Naval Vessels Lürssen (NVL). The shipyard subsidiary’s competitors include the French shipbuilding group Naval Group, Saab from Sweden and the British company BAE Systems.