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ThyssenKrupp to axe railway equipment business

ThyssenKrupp will close its railway equipment business after deciding a sale of the business would not meet financial expectations.
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The group’s Materials Services division halted the disposal process for its Railway/Construction operating unit after “an intensive exploratory phase” initiated May 2013.

The firm said that a review of bids for the unit – comprising the companies ThyssenKrupp GfT Gleistechnik (railway equipment) and ThyssenKrupp Bautechnik (construction equipment) – fell short of ThyssenKrupp’s financial expectations.

“Against this background the business area management board has decided to discontinue the railway equipment activities,” the group said in a statement. “This will result in part sales and closures of sites. The associated job cuts will affect altogether up to 260 employees.

“Negatively impacted by the rail cartel and unprofitable, the railway equipment business has no growth prospects on the German market and is under extreme cost pressure.”

Dr Klaus Keysberg, member of the Materials Services management board added: “Unfortunately we see no realistic chance of the railway equipment business making a value-adding contribution to the Group's earnings in the long term.”

Employees and codetermination bodies have been informed of the decision. The group said its aim was to implement the personnel measures in a “socially responsible way” by the end of the 2014/2015 fiscal year and talks on this are now underway.

The profitable construction equipment operations will be continued within the Materials Services business area and repositioned following a business model analysis.

The decision remains subject to the approval of the supervisory board of ThyssenKrupp Materials International GmbH.


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