ThyssenKrupp AG has identified a series of steps to restructure its organization and increase its focus on the automotive market by strengthening its engineering business, expanding in emerging markets, and continuing to reduce debt. Among the divisions listed for sale is ThyssenKrupp Waupaca Inc., its U.S.-based ferrous foundry group.
Dusseldorf-based ThyssenKrupp is a steel and industrial conglomerate with a range of business units worldwide. In its announcement the company said its executive board made the decision to restructure at an extraordinary meeting, and intends “to focus the portfolio and discard business activities for which alternative strategic options are more suitable in order to strengthen the financial base of the group and to provide additional flexibility for the expansion into strategically promising business activities.”
The company is already offering for sale ThyssenKrupp Metal Forming and ThyssenKrupp Xervon, and establishing a joint venture with Abu Dhabi Mar to own ThyssenKrupp Marine Systems. Now marked for sell-off are ThyssenKrupp Waupaca and ThyssenKrupp Tailored Blanks. It plans to combine the chassis businesses of the Bilstein Group and Presta Steering, together with its springs and stabilizers businesses and the Brazilian Automotive Systems business.
ThyssenKrupp is still determining the future of its global stainless steel business.
There is no deal in place to sell ThyssenKrupp Waupaca; the parent company said would seek a buyer based on “the best owner” process. ThyssenKrupp Waupaca produces gray and ductile iron and CGI castings at six foundries —in Waupaca (3) and Marinette, WI; Tell City, IN; and Etowah, TN— for automakers and manufacturers of off-highway equipment, commercial vehicle, material handling equipment, and general industrial products.
The Indiana foundry is the object of a $36.5-million expansion to complete a cupola dehumidification project, improve plant automation, expand a landfill, and replace an existing molding line. The project were revealed last October and will be carried out over the next four years,” according to a company source.
ThyssenKrupp stated the foundry business posted 2010 sales of almost €900 million ($1.3 billion) and has about 3,000 employees.