German steelmaker Thyssenkrupp has started evaluating options for divesting from its logistics and processing services provider Materials Services unit, as it is trying to streamline its steel business under pressure from high energy costs and competition from Asia, according to sources talking to Bloomberg.
Sources have reported that the company could spin the Materials Services unit off or outright sell it as it has received buying interest. The unit could be valued at as much as €2 billion in a possible sale.
Serving a wide range of industries such as automotive, construction and mechanical engineering, ThyssenKrupp Materials Services is one of the world’s biggest plastics and steel materials distribution and service providers. The unit’s annual revenue was about €12 billion, accounting for roughly a third of Thyssenkrupp’s total revenue in the most recent financial year.