Thyssenkrupp's Balancing Act: Portfolio Moves Amid a Production Halt

Thyssenkrupp shares closed at EUR 8.54 on Friday, capping a weekly gain of over nine percent. This recent strength, however, masks a stark operational crisis unfolding within its core steel business. The company is being forced to implement drastic measures, including a complete production shutdown at its Isbergues site in France from June to September, due to a wave of low-priced imports squeezing margins.

This industrial reality forms a sharp contrast with the group's strategic advancements. Since the start of April, Thyssenkrupp has completed the sale of its Automation Engineering unit to Agile Robots, now rebranded as Krause Automation. This move streamlines the automotive segment, allowing a sharper focus on more profitable core operations like forging.

Simultaneously, the company is showcasing its technological ambitions. Beginning April 13th at the Tube 2026 trade fair in Düsseldorf, its steel division will present hydrogen-optimized steels designed for transport infrastructure. The green transition is also progressing on the ground, with a new direct reduction plant under construction in Duisburg slated to cut up to 3.5 million tonnes of CO? annually from 2030.

Should investors sell immediately? Or is it worth buying Thyssenkrupp?

Financing this expensive transformation remains a critical challenge. Market observers point to three key events in 2026 that could provide crucial financial breathing room. The publication of the half-year report on May 12th will be scrutinized for confirmation of the annual outlook. Between May and June, potential new EU steel tariffs, which could cut import quotas by 47 percent, may come into force. Most significantly, a planned IPO or sale of Thyssenkrupp's remaining 16.2 percent stake in TK Elevator is slated for the second half of the year, with the entire elevator business valued at up to EUR 25 billion.

Operational wins are providing some support. The plant engineering unit Uhde recently secured a contract from POSCO E&C in South Korea to build a low-emission coke oven battery. Furthermore, the steel division is supplying approximately 1,000 tonnes of CO?-reduced steel for a drinking water project in Luanda, Angola.

Despite these strategic moves, immediate pressures persist. The production halt in France endangers around 1,200 jobs across the region. Stalled restructuring talks with Jindal Steel add another layer of complexity. With the stock still trading well below its 200-day line at EUR 9.94, the overarching downtrend remains intact. Investors face continued volatility until the half-year report in May, as cheap Asian imports continue to pressure traditional steel margins in the near term.

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