Czech billionaire Daniel Kretinsky’s investment entity, EP Corporate Group (EPCG), expressed its enthusiasm on Friday about the ongoing discussions with Thyssenkrupp regarding a potential 50-50 joint venture. The talks, which revolve around Thyssenkrupp’s steel division, are being viewed as a promising strategic match by EPCG.
In a statement sent via email, a representative from EPCG highlighted the challenges associated with decarbonizing steel production. The spokesperson pointed out the escalating costs linked to energy resources such as electricity, hydrogen, natural gas, and emission allowances. EPCG emphasized that their energy division, EPH, possesses extensive expertise in dealing with these challenges. They noted that the steel industry’s struggle to decarbonize mirrors the challenges the power sector has faced for several decades.
EPCG firmly asserted that their group is well-equipped to address these challenges, making them a suitable contender for entering Thyssenkrupp Steel Europe. They believe that their experience and knowledge could significantly contribute to Thyssenkrupp’s efforts in the steel sector.
Earlier this week, the chairman of Thyssenkrupp’s steel unit acknowledged the challenging conditions prevailing in the steel market. Despite the market difficulties, he confirmed that the ongoing discussions with Kretinsky’s team remained unaffected at this point.
In summary, EPCG’s expertise in handling the complexities of decarbonizing energy-intensive industries positions them as a strong candidate for collaboration with Thyssenkrupp. Their proposal aims to address the rising costs associated with transitioning to sustainable steel production, making their joint venture discussions with Thyssenkrupp a potentially fruitful partnership.