EP Corporate Group to invest in thyssenkrupp Steel, aiming for joint venture
EP Corporate Group a.s. (EPCG) has agreed to acquire a 20% stake in the steel business of thyssenkrupp AG, marking a pivotal move in the steel industry. The transaction, which is set to close within the current fiscal year of thyssenkrupp AG, is subject to approval from relevant authorities and the Supervisory Board of thyssenkrupp AG. This initial investment may pave the way for EPCG to acquire an additional 30%, aiming to establish a 50/50 joint venture.
Enhancing Capabilities and Aiming for Decarbonization
This strategic partnership is seen as a significant step toward creating a resilient, cost-efficient, and climate-friendly steel production at thyssenkrupp Steel. It aligns with both companies’ commitment to sustainability and the broader goal of decarbonizing the steel industry. Miguel López, Chairman of the Executive Board of thyssenkrupp AG, expressed confidence in the joint venture, highlighting its potential to lead thyssenkrupp Steel towards economic independence and success while contributing to climate protection.
The Role of EP Corporate Group in the Partnership
EPCG brings substantial energy expertise to the table, which is crucial for the future operations of thyssenkrupp Steel. Daniel Křetínský, CEO and majority owner of EPCG, stated that this partnership aims to reshape thyssenkrupp Steel, turning it into a high-performance, profitable, and future-oriented company. EPCG’s involvement is expected to lower the costs of decarbonization and accelerate the green transformation of the steel industry towards CO2 neutrality.
Investment in Green Technologies
Thyssenkrupp has already initiated steps towards greener production methodologies with the construction of the first hydrogen-capable direct reduction plant at Duisburg, which is supported by significant federal and state investments. This project is considered a blueprint for the industry’s future, requiring extensive green electricity for hydrogen-based steel production processes.
Future Plans and Economic Impact
The partnership foresees enhancing the Duisburg site’s energy supply, potentially including additional green electricity, hydrogen, and natural gas to support the steel production process. EPCG also has plans to significantly expand its renewable energy capacity in Germany, with a focus on wind, solar, and biomass.
This strategic acquisition not only aims to transform thyssenkrupp Steel Europe but also positions the company for a future of sustainable and competitive steel production. The collaboration between thyssenkrupp’s material know-how and EPCG’s energy expertise could set a new standard in the industry for environmental sustainability and economic performance.