Salzgitter CEO Rejects Idea of Steel Alliance With Thyssenkrupp

HAMBURG — Germany’s second-largest steelmaker Salzgitter is not interested in an alliance with rival Thyssenkrupp, Chief Executive Heinz Joerg Fuhrmann told Reuters.

“We currently do not see any scenario that would improve our situation compared with independence,” Fuhrmann said in an interview on Monday.

“We would first have to dismantle ourselves, or allow ourselves to be dismantled. No sensible person in the company would go along with that here.”

Thyssenkrupp said last month its steel unit faced operating losses of 1 billion euros (910.63 million pounds) this year, raising pressure on it to fix or sell the division, with Salzgitter seen as one of several potential future partners.

The expected loss at Thyssenkrupp Steel Europe, the continent’s No.2 player after ArcelorMittal, comes as the sector suffers from cheap Chinese imports, high raw material prices and weak automotive demand.

Fuhrmann said those who supported the idea of the creation of a

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