Thyssenkrupp's Strategic Gambits: From Canadian Subs to Korean Steel

Thyssenkrupp's tech divisions secure major contracts in defense and industrial tech while advancing green steel solutions, despite steel sector challenges and a lagging share price.

While its core steel operations face persistent challenges, Thyssenkrupp's diverse technology divisions are actively reshaping the conglomerate's future. Recent strategic moves across its portfolio, from securing a pivotal raw material partnership to landing a major Asian industrial contract, signal a concerted push beyond its traditional industrial base.

A landmark opportunity is materializing in Canada, where Thyssenkrupp Marine Systems (TKMS) is a finalist for a historic submarine contract worth up to €37 billion. To strengthen its position against South Korean rival Hanwha Ocean ahead of the government's final decision between May and June 2026, TKMS has forged a partnership with Canadian resource firm E3 Lithium. This deal aims to integrate locally sourced, battery-grade lithium into the supply chain for its 212CD-class submarines, boosting local value creation—a key consideration for Ottawa.

The defense subsidiary is already demonstrating operational strength, with its order backlog swelling to over €20 billion. Its gross margin recently improved significantly to 17 percent, prompting management to raise the full-year sales forecast to growth of 2 to 5 percent.

Simultaneously, another Thyssenkrupp unit has secured a significant international order. Thyssenkrupp Uhde has been commissioned by POSCO E&C to plan and supply a new coke oven battery for a POSCO steelworks in Pohang, South Korea. The facility will replace aging infrastructure from the 1980s and incorporate Uhde's proprietary EnviBAT® technology, a system designed to lower emissions and optimize raw material use in the coking process. This technology is already deployed in more than 30 batteries and over 2,100 ovens worldwide.

On the corporate front, Thyssenkrupp continues to streamline its portfolio. The sale of the Automation Engineering unit to Agile Robots SE was finalized in early April, with approximately 650 employees and ten sites across Europe and North America transferring to the new owner, now operating as "Krause Automation." This move sharpens the focus of Thyssenkrupp Automotive Technology on four core areas: chassis systems, components, aftermarket, and forging.

The company is also showcasing its green industrial capabilities, presenting specialized steel products for the energy transition at the Tube trade fair in Düsseldorf from April 13 to 17. The spotlight is on H?-optimized steels engineered for resistance to hydrogen embrittlement, intended for safe hydrogen pipeline operation, alongside its CO?-reduced bluemint® Steel range. In the background, construction of the first direct reduction plant in Duisburg continues, a project launched in February 2026 with a planned annual capacity of 2.5 million tons of directly reduced iron and potential CO? savings of up to 3.5 million tons.

Despite these strategic advances, the group's share price has yet to reflect the subsidiary-level momentum. Thyssenkrupp stock trades at €8.31, marking a 14.04 percent decline since the start of the year and sitting more than 16 percent below its 200-day moving average. A recent weekly gain of 6.59 percent offers a tentative technical signal of potential stabilization.

Several near-term catalysts could drive a revaluation. The publication of the half-year report on May 12, 2026, and an anticipated EU decision on potential steel tariffs in May or June are key dates. The most substantial fundamental levers, however, remain the Canadian submarine award decision and the potential initial public offering of former elevator division TK Elevator. That IPO, slated for the second half of 2026, could carry a valuation of up to €25 billion. Thyssenkrupp's remaining 16.2 percent stake could generate significant capital inflow from a transaction, funds earmarked for green steel production and debt reduction.