DUESSELDORF, Germany (Reuters) – An expert opinion on the financial needs of crisis-hit steelmaker Thyssenkrupp (ETR:) gave a positive outlook on its ability to continue as a going concern, the parent company said on Sunday. Thyssenkrupp said in a written response to a Reuters question that as a result of the report, the parent company has made a financial commitment to ensure that the steel business is there for the next two years. “This means that it is now clear about the financial situation of the steel division,” the company said in its written response, confirming a report by Der Spiegel weekly.
Thyssenkrupp commissioned two external reports to take a closer look at the health and financial needs of the steel business in the short and long term. The first review will go into the second report, which will be used for future decisions about the classification of the metal and is expected next year. Earlier this month, Thyssenkrupp said it had written down the value of its steel division by another 1 billion euros ($1.04 billion), blaming the sector’s worsening situation mainly on weak demand and competition from Asia. Thyssenkrupp is pursuing a 50:50 steel joint venture with Czech billionaire Daniel Kretinsky but is seeking talks with other steelmakers in case it falls through after previous attempts to sell the unit failed in recent years.
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