Thyssenkrupp Witnesses Drive for Steel from Transfer to Electric Cars

European steel business of Thyssenkrupp, which is anticipated to be amalgamated shortly with its equivalent at Tata Steel, will receive a fueling from the shift of auto industry towards electric cars. This data was given by a senior manager at the group to the media in an interview.

Analysts and investors are strongly watching any signs from Thyssenkrupp regarding the reformation of its steel business in Europe, with many hoping an amalgamation might symbolize the initial step for a complete depart of the business. On the other hand, Head of Automotive Sales at Thyssenkrupp Steel Europe, Bernhard Osburg, pointed out the possible value of the steel commerce in future since chief car industry users move towards battery technologies away from combustion engines.

Thyssenkrupp Witnesses Drive for Steel from Transfer to Electric Cars

“With no steel there will be no electric mobility,” he claimed to the media at the headquarters Thyssenkrupp this week. “We anticipate e-mobility to be an optimistic commerce case for us,” he further added, hounding high-strength steel and electrical steel strip as 2 items that will witness higher need since more electric cars are produced. Thyssenkrupp has been in discussion with Tata Steel for over 1 Year regarding an amalgamation of steel operations at Europe of both firms, disagreeing that it was the best approach to get rid of congestion in the volatile segment.

Thyssenkrupp Steel Europe caters to almost 6 Million Tons of steel to the vehicle market and its supply chain annually, contributing for almost 50% of its total yearly production. The automotive market is the single largest user group of Thyssenkrupp, contributing for 9.8 Billion Euros (almost $11.7 Billion) of group sales. Thyssenkrupp claims that its elements are utilized in 9 out of 10 premium vehicles, comprising all variants of Tesla, the well-known electric car maker.

Osburg claimed that electrical steel strip was active in assisting to extend ranges for electric vehicles, a main source of worry amid potential buyers, including the fact that developing requirement to defend batteries within cars also needing stronger steel. “Here you require highest strength levels in a restricted area,” he further added to his statement while talking to the journalists at the headquarters.

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