Thyssenkrupp Steel executives resigned amid tension over Křetínský’s approach

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The head of Thyssenkrupp’s steel division announced his departure as internal tensions over the future of Germany’s biggest metal producer erupted in public amid a takeover bid by Czech billionaire Daniel Křetínský.

Bernhard Osburg, chief executive of Thyssenkrupp Steel, will leave the subsidiary together with Sigmar Gabriel, chairman of its supervisory board, as well as five other directors.

Gabriel accused Thyssenkrupp CEO Miguel Lopez of an “unprecedented (public) campaign” against executives at the company’s steel division, which he called “a serious breach of trust” in a statement on Thursday evening.

Former Siemens executive Lopez, who took over the struggling German industrial conglomerate in 2023, announced earlier this year that Křetínský’s EP group had bought 20% of the steel unit, with talks taking it to a total of 50%.

The accompanying restructuring talks, involving layoffs, production cuts and overhaul costs, have caused deep clashes between Lopez and the steel plant’s management, as well as with workers’ representatives.

The division has 27,000 employees and the number of job cuts is currently being negotiated.

In his highly unusual public letter, Gabriel said he could no longer act “responsibly” in his position as chairman of the supervisory board because of a lack of “standards of professionalism” and “open discussion.” Two other directors of the steel unit and three members of the supervisory board are also leaving.

Gabriel noted, “I . . . appeals to all involved to be aware of their responsibility to 27,000 employees and to seek ways to de-escalate the conflict.”

In Germany, supervisory boards supervise the work of the executive board and appoint its members.

Knut Giesler, the regional leader of the IG Metall union, accused Thyssenkrupp’s management on Thursday evening of “driving this company into unprecedented chaos”.

Thyssenkrupp, once a symbol of German industrial might, has struggled for years as its steel business has continued to struggle with lower demand from European automakers and higher energy costs.

Thyssenkrupp’s former chief executive Martina Merz resigned unexpectedly last year after criticism over long-promised delays in restructuring and selling the group’s steel unit.

Thyssenkrupp and EP Group declined to comment. Lopez did not immediately respond to a request for comment.