BERLIN, July 17 (Xinhua) -- The escalation of a leadership crisis at Thyssenkrupp has raised fears in Germany of a looming corporate break-up of the industrial steel giant.
Following the abrupt resignation of chairman Ulrich Lehner on Monday night local time, the second departure of a leading figure at Thyssenkrupp within less than two weeks, workers' council president Wilhelm Segerath warned on Tuesday that the wider structural integrity of the Essen-based company and many of its jobs were now at stake.
"We want to work together with the Krupp Foundation (the largest shareholder, note) and all other shareholders to try to preserve the corporation," Segerath told press. He hereby referred to controversial plans, championed by the financial investors Cevian and Elliot to sell off individual Thyssenkrupp business units to improve profitability at the sprawling industrial conglomerate.
"We protect financial markets, but we don't protect industry and the real economy enough," Segerath complained. The announcement of Lehner's resignation was made only shortly after the chairman emphasized the need for "stability and continuity" at Thyssenkrupp in reaction to the surprising departure of chief executive officer (CEO) Heinrich Hiesinger.
During his seven-year tenure, Hiesinger repeatedly clashed with Thyssenkrupp's second largest shareholder Cevian. The Swedish investment fund accused the CEO of poor financial performance and mismanagement, calling for radical break-up of the company.
In response to such criticism, Hiesinger highlighted what he saw as the advantages of an integrated corporation whilst describing the recent Thyssenkrupp-Tata fusion as the starting point for more far-reaching reforms at the industrial behemoth. "We are leading Thyssenkrupp as an integrated company because this results in measurable advantages," he told investors at the company's most recent annual general meeting (AGM).
According to German media reports, however, Hiesinger increasingly felt inadequate support in his strategic vision for the conglomerate by the Krupp foundation. The foundation subsequently stressed that it remained committed to the will of Alfried Krupp to preserve the unity of the company he founded as well as possible.
In the wake of Hiesinger's exit and replacement with Guido Kerkhoff as interim CEO, chairman Lehner lashed out against investors whom he accused of trying to destabilize the company. After his own resignation on Monday night, Lehner cited insurmountable differences in opinion between himself and major shareholders over the future trajectory of the company as having led to the decision.
Lehner expressed hope that his departure would create awareness among stakeholders that a break-up of the company, and the resulting loss of many jobs, was "not a viable option". He argued that such an outcome would neither be in the interest of Thyssenkrupp's founders, nor of the country as a whole.
