Thyssenkrupp board accepts CEO’s exit, backs Tata Steel JV
LONDON: The supervisory board of German steel major Thyssenkrupp on Friday accepted the resignation of its CEO Heinrich Hiesinger in “mutual agreement” and reiterated its backing for a merger with Tata Steel.
Hiesinger announced his exit as chief executive officer of the company late on Thursday. It came just days after he joined Tata Steel chairman N Chandrasekaran at a joint press conference in Brussels to welcome a “new steel champion in Europe” following an agreement on a joint venture with the Indian steel major.
In a statement after a board meeting, chairman of the supervisory board of Thyssenkrupp Ulrich Lehner said the company remained committed to the Indian joint venture, which is set to create Europe’s second-largest steel-maker after Lakshmi N Mittal’s Arcelor Mittal.
“In this tough situation for the company it is now initially about staying on course... this includes the realisation of the steel joint venture. For this we reached an important milestone with the signing,” said Lehner, in reference to the definitive agreement signed with Tata last week.
He also praised Hiesinger’s leadership of the German steel giant over the last seven years.
“He kept the company from its demise and changed it sustainably. During his time, he created the basis for Thyssenkrupp to exist as a strong industrial company in accordance with the principles of the foundation,” Lehner said, adding that his decision to step down at this point “deserves our highest esteem and respect”.
The company’s supervisory board has asked the Board — comprising Guido Kerkhoff, Oliver Burkhard and Donatus Kaufmann — to lead without a chief executive officer for the time being as the successor for Hiesinger will be appointed following a “structured process”.
Hiesinger is seen as instrumental in achieving the 50-50 JV agreement with Tata Steel.