Compass for 2020

Every change program at Steel Europe has a different objective. But the common direction for the coming years has not been clearly formulated to date. The vision now aims to change this.

Duisburg, 2020: Very few coils now leave the plant, one blast furnace after another is extinguished. The roads on site are empty, the shops deserted. Only a few desks are still occupied in the offices, orders have almost run out. What sounds like a horror movie could become reality for ThyssenKrupp Steel Europe in the near future – if everything remains as it is now. The market environment for steel producers has deteriorated badly in recent years. Added to the normal market fluctuations in the steel sector are high raw material/energy costs and intense competition as a result of overcapacities. If everything continues in the same way, income will no longer be sufficient to cover costs.

Time to act

ThyssenKrupp Steel Europe needs to face up to the future now in 2014 and restructure. We must banish the thought that profits will automatically reappear with the next upturn. Anyone who wishes to remain successful in this changeable market environment must drive events proactively.

But how can this be done? Where does the Steel Europe business area want to be? What achievements will employees look back on with pride in the future? Answers to these questions are provided by the vision for the business area which will now serve as the compass for the necessary changes (see below). The vision is not a new program, but rather an objective developed by the Management Board, directors and managers of the subsidiaries. The vision summarizes what Steel Europe wants to be in the future and how it wishes to be seen in 2020. “What we describe as our objective in the vision cannot be achieved by the Management Board and executives alone. To turn it into reality, we need the help of each and every colleague,” says Management Board spokesman Andreas Goss.

What needs to be done now

So from now on, the following applies: Whether it’s strategic initiatives, operating measures or personal conduct – all decisions must be aligned to the vision for Steel Europe. In the coming weeks and months, company-wide management events will be held to explain the connections between the necessary changes and agree concrete steps to bring the vision a step closer to reality. The company is not starting from scratch as the mission statement and leadership principles continue to apply as a basis for the actions of managers and employees. The company is currently changing in many ways: For example, daproh Steel will improve processes and systems, which will save a significant amount of time and money in the future. synergize+ is another extremely important program in realizing the vision: It will create the basis for more cost-effective purchasing throughout the Group. This will also save a lot of money, which can then be better invested e.g. in plants and new products. BiC Reloaded, some phases of which have already been completed, will play the most important role. The program is aimed at reducing costs quickly, making us more efficient and above all strengthening our customer focus.

If these challenging programs in the business area are successful, we will be able to make a new start. The company will realize its vision and once again take a leading position in the sector as a successful company.