Thyssenkrupp’s June Collision: Union Pressure, a Canadian Prize, and the Next Spin-Off Move

IG Metall deputy chief seeks direct negotiations with CEO López as Thyssenkrupp navigates steel division separation, record Marine Systems orders, and a potential Materials Services carve-out.

Jürgen Kerner, the deputy supervisory board chairman at Thyssenkrupp and second-in-command at IG Metall, has thrown down a marker. He wants direct talks with chief executive Miguel López on carving out the steel division under its own steam. The union’s move lands at an awkward moment — only weeks after the group paused negotiations with prospective partner Jindal Steel International. With no external investor in sight, the workforce is demanding that management accelerate the restructuring from within.

The stock has already priced in a recovery story. At around €11.77, shares have climbed 19.69% over the past 30 days and sit 22.67% above their 50-day moving average. Year-to-date the gain stands at 21.69%. That rally, however, masks a thicket of unresolved decisions that will define whether the equity can hold its ground.

On June 1, Thyssenkrupp Steel Europe officially handed its 50% stake in the Hüttenwerke Krupp Mannesmann (HKM) joint venture to Salzgitter. The Duisburg-based plant will continue to supply slabs under long-term agreements through 2028, so production flows uninterrupted. Meanwhile, construction of the direct-reduction plant in Duisburg moves ahead, underscoring that the steel division is not standing still even as its ownership structure shifts.

The IG Metall’s intervention is politically significant. By signalling that labour will not block an independent Steel Europe, Kerner opens the door to a full separation — but only if the workforce has a seat at the table in shaping it. That puts pressure on López and steel chief Marie Jaroni to deliver concrete proposals. They have argued that a consistent reform path can make the division more attractive to investors, yet no buyer has emerged since the Jindal talks stalled in early May.

Steel’s drag is offset by the powerful performance of Marine Systems. Order intake in the second quarter (January to March) surged to €10.6 billion, a 32% jump year-on-year, driven by two additional 212CD submarines for Norway and new contracts in naval electronics. The order backlog at Thyssenkrupp Marine Systems (TKMS) hit a record €20.6 billion as of March 31. Now comes the next big prize: Canada is expected to decide by the end of June on a contract for up to a dozen Arctic-capable submarines. TKMS is pitching the ice-adapted 212CD class against South Korea’s Hanwha Ocean, with the German government firmly backing the domestic bid. TKMS boss Oliver Burkhard anticipates a verdict within the first half of the year.

Beyond the submarine race, the board is weighing what could become the largest carve-out in Thyssenkrupp’s history. Materials Services, which generated €11.4 billion in revenue last fiscal year and employs more than 15,000 people, faces a decision on its future in June. Reuters has reported that the group is considering an extraordinary general meeting in late July or early August to approve a spin-off, using the TKMS model as a blueprint — that division was separated in October 2025 with Thyssenkrupp retaining a 51% stake.

The financial backdrop supports the restructuring narrative. Second-quarter adjusted EBIT improved to €198 million from a meagre €19 million a year earlier. Revenue edged down to €8.4 billion, squeezed by pricing and demand effects, but the group confirmed its full-year guidance. Negative free cash flow before M&A is expected to stay below €600 million, while the net financial surplus stood at €2.8 billion and available liquidity at €4.6 billion at the end of March.

López’s ultimate objective is to transform Thyssenkrupp into a financial holding that manages stakes rather than operates heavy industry. That vision now depends on three variables: how fast Steel Europe can be separated without a buyer, what role labour will carve out for itself in the process, and whether Canada comes through for TKMS. Until those answers crystallise, the stock remains a bet on a restructuring that is accelerating — but is far from settled.