ThyssenKrupp
Overview
 
ThyssenKrupp AG (icon) is a German multinational conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...

 corporation headquartered in Duisburg Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services.
Encyclopedia
ThyssenKrupp AG (icon) is a German multinational conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...

 corporation headquartered in Duisburg Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. As of a 2009 reorganization , it is structured into eight business areas that fall under two major divisions, Materials and Technologies. The Materials division concentrates on carbon steel, stainless steel,and material services while the Technology Division concentrates on elevator, plant and components technology, and marine systems. The company is the result of the 1999 merger of Thyssen AG
Thyssen AG
Thyssen was a major German steel producer founded by August Thyssen. After over 100 years of existence the company merged with Friedrich Krupp AG Hoesch-Krupp to form ThyssenKrupp in 1999.-History:...

 and Krupp
Krupp
The Krupp family , a prominent 400-year-old German dynasty from Essen, have become famous for their steel production and for their manufacture of ammunition and armaments. The family business, known as Friedrich Krupp AG Hoesch-Krupp, was the largest company in Europe at the beginning of the 20th...

, and is headquartered in the city of Essen
Essen
- Origin of the name :In German-speaking countries, the name of the city Essen often causes confusion as to its origins, because it is commonly known as the German infinitive of the verb for the act of eating, and/or the German noun for food. Although scholars still dispute the interpretation of...

. The largest shareholder is the Alfried Krupp von Bohlen und Halbach Foundation
Alfried Krupp von Bohlen und Halbach Foundation
The Alfried Krupp von Bohlen und Halbach Foundation is a major German philanthropic foundation, created by and named in honour of Alfried Krupp von Bohlen und Halbach, former owner and head of the Krupp company, once the largest company in Europe....

, a major German philanthropic foundation, created by and named in honour of Alfried Krupp von Bohlen und Halbach
Alfried Krupp von Bohlen und Halbach
Alfried Felix Alwyn Krupp von Bohlen und Halbach , often referred to as Alfried Krupp, was a convicted war criminal, an industrialist, a competitor in Olympic yacht races and a member of the Krupp family, which has been prominent in Germany since the early 19th century.The family company, known...

, former owner and head of the Krupp company, once the largest company in Europe..

Products and sales

ThyssenKrupp generates 33% of its consolidated sales on its home market. The rest of the EU (European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

) (28%) and the NAFTA region (21%) are the key foreign regions for its business outside Germany. ThyssenKrupp companies hold leading positions with their products in numerous international markets. ThyssenKrupp is the world's leading producer of tailored blank steel
Tailored blank steel
Tailored blank steel is a steel manufacturing technology.Tailored blanks welding steel materials of differencing thicknesses. This differential welding process improves the resultant steel's impact safety performance. The use of tailored blanks also reduce the weight of the steel by distributing...

. Tailored blanks weld steel materials of differing thicknesses.

History

ThyssenKrupp is the result of a merger of two German steel companies, Thyssen AG
Thyssen AG
Thyssen was a major German steel producer founded by August Thyssen. After over 100 years of existence the company merged with Friedrich Krupp AG Hoesch-Krupp to form ThyssenKrupp in 1999.-History:...

 founded in 1891 and Krupp
Krupp
The Krupp family , a prominent 400-year-old German dynasty from Essen, have become famous for their steel production and for their manufacture of ammunition and armaments. The family business, known as Friedrich Krupp AG Hoesch-Krupp, was the largest company in Europe at the beginning of the 20th...

 founded in 1811. As early as the 1980s, the companies began negotiations on a merger and began closely cooperating in some business areas. In 1997, the companies combined their flat steel activities, with a full merger completed in March 1999.

Mergers and acquisitions

In 1978, during a period of expansion, Thyssen AG
Thyssen AG
Thyssen was a major German steel producer founded by August Thyssen. After over 100 years of existence the company merged with Friedrich Krupp AG Hoesch-Krupp to form ThyssenKrupp in 1999.-History:...

 entered the North American automotive industry with the acquisition of Budd
Budd Company
The Budd Company is a metal fabricator and major supplier of body components to the automobile industry, and was formerly a manufacturer of stainless steel passenger rail cars during the 20th century....

's automotive operations, which became the automotive division of Thyssen and operated in North America as Budd Thyssen, later ThyssenKrupp Budd Co. In October 2006, ThyssenKrupp sold ThyssenKrupp Budd's North American body and chassis operations to Martinrea International
Martinrea International
Martinrea International Inc. is a Canadian auto parts manufacturer based in Vaughan, Ontario.It manufactures metal parts, assemblies and modules, as well as fluid management systems, for the automotive industry and other industrial sectors, and has operations in Canada, the United States, Mexico...

 Inc.

In 1999, Thyssen (one of the companies of the merger to form ThyssenKrupp Elevator) acquired the American based Dover Elevator Company
Dover Corporation
Dover Corporation is a Fortune 500 and S&P 500 manufacturer of specialized industrial products and equipment within six segments. Dover Corporation is based in Downers Grove, Illinois, a western suburb of Chicago. The company relocated its headquarters from New York in mid-2010.-History: can trace...

. Four years later, ThyssenKrupp acquired the Korean based Dongyang Elevator.

In 2005, ThyssenKrupp acquired Howaldtswerke-Deutsche Werft (HDW) in Kiel
Kiel
Kiel is the capital and most populous city in the northern German state of Schleswig-Holstein, with a population of 238,049 .Kiel is approximately north of Hamburg. Due to its geographic location in the north of Germany, the southeast of the Jutland peninsula, and the southwestern shore of the...

 from One Equity Partners
One Equity Partners
One Equity Partners is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries....

. ThyssenKrupp Marine Systems
ThyssenKrupp Marine Systems
ThyssenKrupp Marine Systems of Germany is a group and holding company of providers of naval vessels, surface ships and submarines...

 (TKMS) is now the most important European group of shipbuilders. In addition to HDW, Blohm + Voss
Blohm + Voss
Blohm + Voss , is a German shipbuilding and engineering works. It is a subsidiary of ThyssenKrupp Marine Systems; there were plans to sell 80% of Blohm + Voss to Abu Dhabi Mar Group, but talks collapsed in July 2011.-History:It was founded on April 5, 1877, by Hermann Blohm and Ernst Voss as a...

 in Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...

 as well as Nordseewerke
Nordseewerke
Nordseewerke is a shipbuilding company located in Emden, Germany. The name Nordseewerke means "North Sea shipyard" in German. The shipyard employs some 1,400 people and is the second-largest plant in Emden, following Volkswagen...

 at Emden
Emden
Emden is a city and seaport in the northwest of Germany, on the river Ems. It is the main city of the region of East Frisia; in 2006, the city had a total population of 51,692.-History:...

 are also subsidiaries of TKMS. One Equity Partners
One Equity Partners
One Equity Partners is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries....

 holds 25% of the TKMS shares.

In December 2005, ThyssenKrupp acquired 60% of Atlas Elektronik
Atlas Elektronik
Atlas Elektronik GmbH is a naval/marine electronics and systems business based in Bremen, Germany. It is involved in the development of integrated sonar systems for submarines and heavyweight torpedoes....

 from BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...

, with EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...

 acquiring the remaining 40%.

In August 2007, ThyssenKrupp Materials North America acquired OnlineMetals.com, a small-quantity distributor of semi-finished metals and plastics based in Seattle, WA.

In early 2008, ThyssenKrupp Aerospace acquired Apollo Metals and Aviation Metals, both suppliers to aerospace and defence.

US subsidiaries

On 11 May 2007, ThyssenKrupp AG announced an investment of €3.1 billion (US$4.19 billion) for a project consisting of building new carbon steel and stainless steel processing facilities in southern Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

 that would employ 2,700 people when fully operational. The project, along with a multi-billion dollar greenfield steelmaking facility in Brazil, is a cornerstone of ThyssenKrupp's new global expansion strategy into the North American and NAFTA high-value carbon steel markets. The company announced that the investment was increased to $4.6 billion in 2010. As of the date of the announcement, the investment was the largest private economic development investment in Alabama's history and the largest by a German company in the U.S. The site selection announcement came after several months of competition involving several southeastern sites which was eventually narrowed between a site on the Mississippi River in Convent, Louisiana
Convent, Louisiana
Convent is an unincorporated community in and the parish seat of St. James Parish, Louisiana, United States.It has been the parish seat since 1869.The town took damage during Hurricane Katrina, disrupting parish government activities for several months....

, and a site on the Tombigbee River
Tombigbee River
The Tombigbee River is a tributary of the Mobile River, approximately 200 mi long, in the U.S. states of Mississippi and Alabama. It is one of two major rivers, along with the Alabama River, that unite to form the short Mobile River before it empties into Mobile Bay on the Gulf of Mexico...

, in Calvert, Alabama
Calvert, Alabama
Calvert is an unincorporated community and census-designated place in Mobile County, Alabama, United States. As of the 2010 census, its population was 277. It is located in the extreme northeastern corner of the county near the Tombigbee River, along U.S. Route 43...

 in north Mobile County, about 40 miles north of Mobile
Mobile, Alabama
Mobile is the third most populous city in the Southern US state of Alabama and is the county seat of Mobile County. It is located on the Mobile River and the central Gulf Coast of the United States. The population within the city limits was 195,111 during the 2010 census. It is the largest...

. The site in Alabama was eventually chosen. Groundbreaking on the Calvert facilities was held in November 2007. The carbon steel and stainless steel companies are independent and operate under different management teams. Co-locating both facilities on the same site enabled the company to optimize the investment in infrastructure and in some shared processing.

The carbon steel company,ThyssenKrupp Steel USA, which represented seventy percent of the overall project investment and hiring, consists of a state-of-the-art hot strip mill, cold rolling mill, and four hot dip galvanizing lines. The hot strip mill began operations in July 2010, the cold roll mill in September 2010, and the first of the hot dip galvanizing lines in March 2011. The company projects to be fully operational in late 2011 and employ approximately 1,800 people at that time. ThyssenKrupp Stainless USA projects to employ approximately 900 people when fully operational in late 2012. At full production, ThyssenKrupp Steel USA will have the capacity to produce 4 million metric tons of carbon steel for NAFTA customers in the automotive, construction, appliance, pipe and tube, and service center industries. In July 2011, the carbon steel project was awarded "Best Greenfield Technology" by American Metal Market
American Metal Market
American Metal Market is an online provider of industry news and metal pricing information for the U.S. steel, nonferrous and scrap markets. Products include a daily publication available in an electronic pdf, live news on the publication's , a hard-copy magazine and a series of weekly newsletters...

, considered to be the longest continuously published newspaper in the metals industry .

ThyssenKrupp Stainless USA has built a cold roll mill and is in the process of building a meltshop. The company projects it will employ approximately 900 people when fully operational in late 2012. In January 2009, ThyssenKrupp announced that in response to the weakened North American stainless steel market and the detoriating global economy, the production startup date for the cold rolling line for ThyssenKrupp Stainless USA would be delayed at least one year while its meltshop would be further delayed until the last quarter of 2011. On December 10, 2010 ThyssenKrupp announced approval for start of construction for the meltshop with an expected completion date of December 2012.

Additionally, the Alabama State Port Authority invested over $100 million to build a state-of-the-art transloading slab terminal on the southern tip of Pinto Island in Mobile Bay
Mobile Bay
Mobile Bay is an inlet of the Gulf of Mexico, lying within the state of Alabama in the United States. Its mouth is formed by the Fort Morgan Peninsula on the eastern side and Dauphin Island, a barrier island on the western side. The Mobile River and Tensaw River empty into the northern end of the...

 to service the inbound raw material slabs for the upriver carbon steel facility. Raw material slabs shipped to the Alabama facility from ThyssenKrupp CSA are transloaded from panamax ships at the terminal onto shallow draft barges for transport upriver to the facility. The terminal is equipped with three wide-span gantry cranes with state-of-the-art magnetic lifting gear designed by ThyssenKrupp and utilizes RFID technology to read indentifiers on each slab and provide up-to-date inventory records that provide each slab's location and weight. The same magnetic techology is also used at ThyssenKrupp's Calvert facility. The terminal was necessary to Alabama's award of the project since the Tombigbee River depth and lack of turning basins prohibit deep draft ship navigation to the site in Calvert.

Price fixing

In November 2006, five elevator
Elevator
An elevator is a type of vertical transport equipment that efficiently moves people or goods between floors of a building, vessel or other structures...

 manufacturers, including ThyssenKrupp, were found guilty of price fixing by the EU
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

, over 9 years,
along with Otis Elevator Co., Schindler Group
Schindler Group
thumb|200px|Schindler Test Tower in Ebikon, Lucerne, SwitzerlandSchindler was founded in Switzerland in 1874 and is the largest manufacturer of escalators and the second largest manufacturer of elevators world wide. Schindler produces, installs, maintains and modernizes elevators and escalators in...

, Kone
KONE
Kone Oyj , founded in 1910 and headquartered in Espoo, Finland, is an international engineering and service company employing some 32,500 personnel worldwide. The firm is the fourth largest manufacturer of elevators worldwide, a leading manufacturer of escalators, and also provides maintenance...

 and Mitsubishi Elevator Europe
Mitsubishi Electric
is a multinational electronics and information technology company headquartered in Tokyo, Japan. It is one of the core companies of the Mitsubishi Group....

. A few months later on 21 February 2007, ThyssenKrupp was fined US$629 million (€479 million) by the EU (Otis was fined $295 million). The EU Competition Commission reported that the companies had worked to rig bids for procurement contracts, share markets, and fix prices between at least 1995 and 2004. The Commission reported that the companies "did not contest the facts" found by EU regulators, noting none of the accused requested a hearing to answer the allegations.The fines totaled US$1.3 billion.

Turin Plant Fire and Trial

On 6 December 2007, an accident inside a plant in Turin
Turin
Turin is a city and major business and cultural centre in northern Italy, capital of the Piedmont region, located mainly on the left bank of the Po River and surrounded by the Alpine arch. The population of the city proper is 909,193 while the population of the urban area is estimated by Eurostat...

, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 caused the death of seven steelworkers. It appears that a damaged manifold
Manifold (general engineering)
A manifold, in systems for moving fluids or gases is a junction of pipes or channels, typically bringing one into many or many into one.-Applications:*Heated-manifold direct-injection die casting for zinc die casting....

 burst and showered the workers with flaming coolant oil; they attempted to extinguish the flames with water but instead caused a flash fire.

The plant was scheduled to be closed in February and was understaffed, but due to a delay in the other plant in Terni
Terni
Terni is a city in southern Umbria, central Italy, capital of the province of Terni, located in the plain of the Nera river. It is 104 km N of Rome, 36 km NW of Rieti, and 29 km S of Spoleto.-History:...

, Turin's workers were often forced to perform overtime
Overtime
Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:*by custom ,*by practices of a given trade or profession,*by legislation,...

 in the last months. Four days before the accident, another fire took place, without any casualties. The accident happened around 1:30 am, after four hours of overtime. When the workers tried to use nearby extinguishers, they found three out of five depleted. A technician admitted to being instructed by a manager of the company to fill every extinguisher in the factory the day after the accident, in order to mislead investigators.
The Italian magistrates are still examining the causes of the fire, with workers describing lax safety measures to investigators. During the investigations, a document was seized from Harald Espenhahn (CEO of the Italian division of Thyssenkrupp). The document states that the only survivor should be taken to court, because he is accusing Thyssenkrupp in the media. The document also states that the fire was due to the fact that the workers were "distracted".

CEO Espenhahn has been charged by the State prosecutor of Turin with "voluntary multiple murder with eventual malice" ("omicidio volontario multiplo con dolo eventuale"), while five other managers and executives have been charged with "culpable murder with conscious guilt". All have been also charged with "malicious omission of safety measures".. On Friday 15 April 2011, Espenhanh and all the other indictees have been sentenced guilty of all charges; Espenhahn has been sentenced to sixteen and a half years in jail and to a life-long ban from holding public offices.

See also

  • List of conglomerates
  • Transrapid
    Transrapid
    Transrapid is a German high-speed monorail train using magnetic levitation. Based on a patent from 1934, planning of the Transrapid system started in 1969. The test facility for the system in Emsland, Germany was completed in 1987...

  • Shanghai Maglev Train
    Shanghai Maglev Train
    The Shanghai Maglev Train or Shanghai Transrapid is a magnetic levitation train, or maglev line that operates in Shanghai, China. It is the first commercially operated high-speed magnetic levitation line in the world...

  • South African Arms Deal
    South African Arms Deal
    The South African Arms Deal was a US$4.8 billion purchase of weaponry by the South African Government finalised in 1999 which has been subject to allegations of corruption....


External links

    • History of the company logo
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