In November 2024, Thyssenkrupp announced a further €1 billion writedown of its steel division, Thyssenkrupp Steel Europe. The unit, once valued at more than twice its new book value, had been hit by structurally lower demand from European industry and the rising cost of decarbonisation.
The impairment was the second in two years and pushed the group to an annual net loss of about €1.5 billion. It came as the company sought a partner or buyer for the steel business, with Czech investor Daniel Křetínský already holding a 20% stake and considering more.
The writedown was an admission that the German steel business, built for a high-demand industrial economy, was no longer worth what the books said. It became a symbol of how legacy European heavy industry has struggled to align capacity with a shrinking market and green transition costs.
Wrote down the steel division by €1 billion, admitting its value had halved, as demand fell and decarbonisation costs rose, pushing the group to a €1.5 billion net loss.
Thyssenkrupp maintained steel capacity sized for a European industrial boom that did not return after energy prices rose.
The company delayed restructuring the division while hoping market conditions and government support would improve.
Decarbonisation investments raised costs without a matching increase in steel prices or demand.
The pursuit of a partial sale allowed value to erode rather than confronting the division's future directly.
Keeping legacy assets on the books at old valuations is not patience — it is a bet that the market will recover, and each year it does not, the writedown gets bigger.
Thyssenkrupp continued talks to sell or partner the steel unit. The case is widely cited in discussions of German industrial restructuring and the cost of the green transition.
FOLLOW THE EVIDENCE