ThyssenKrupp, the German steel and industrial group, is seeking a buyer for part of its ThyssenKrupp Components Technology unit, a contract assembly business that produces axle systems under contract for automakers. The prospective move has not been made official by ThyssenKrupp, but it would become the latest effort to restore profitability and downsize the organization.
While the conglomerate once included numerous lines of business supplying automakers and their tier manufacturing companies, most of these have been sold or spun off in the past five years. The effort now is to focus on ThyssenKrupp’s core business, steelmaking, and high-tech industrial goods.
According to one report, ThyssenKrupp has enlisted an investment bank to locate a buyer for the Components Technology subdivision.
Potential buyers would include other companies in the same line of business, automotive and commercial vehicle axle manufacturing. Among these would be American Axle & Manufacturing, Benteler International, Dana Holding Corp., and ZF Friedrichshafen AG. Private equity groups, which have been particularly active in the automotive supply chain, also are considered potential buyers.