Thyssenkrupp Materials Services Undergoes Company-Wide Transformation

Thyssenkrupp Materials Services is undergoing a significant transformation to stay ahead in the market. This transformation is a response to changing customer needs and the increasing demand for digital solutions.

The company has been working to modernize its operations, with a focus on improving efficiency and reducing costs. This includes implementing new technologies and streamlining processes.

Thyssenkrupp Materials Services aims to become a more agile and customer-centric organization, better equipped to meet the evolving needs of its customers.

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The changing landscape of the manufacturing industry is forcing companies to adapt. Traditional trading in materials still makes up our core business.

Our customers in the manufacturing industry used to decide for themselves which products they would bring to market. Today, however, the trade often tells them which products they want.

This change from push to pull means that manufacturers – and consequently we as well – can no longer plan in the long term when which materials will be needed.

Customers are approaching us and asking for help in managing this change. They want to know how we can work together to meet their needs.

We're no longer just suppliers of materials, but also providers of service and IT solutions.

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Thyssenkrupp Materials Services has been a leader in the materials trading business for over 100 years, with a history dating back to 1926. The company has undergone significant changes over the years, expanding its operations and services to meet the evolving needs of its customers.

The company's transformation into a global business was marked by its acquisition of the UBC Group in 2018, adding a significant presence in the Asian market. This move enabled Thyssenkrupp Materials Services to expand its global reach and improve its competitiveness.

The company's commitment to innovation is evident in its use of digital technologies, which has enabled it to improve its supply chain efficiency and customer service.

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ThyssenKrupp is considering options to exit its materials trading business, Thyssenkrupp Materials Services GmbH, which could be valued at up to €2 billion.

The company has already held preliminary talks with potential advisors on the future of the unit and received initial interest from potential buyers.

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Several scenarios are being considered, including the spin-off of the business into a separate entity or its sale.

ThyssenKrupp Materials Services is one of the world's largest independent distributors of non-metallurgical materials, employing about 16,000 people and accounting for about a third of ThyssenKrupp's total revenue.

The division's EBITDA amounted to more than €200 million last year, contributing significantly to the company's overall performance.

The company's CEO, Miguel Angel Lopez Borrego, has previously announced his intention to simplify the group's structure by separating non-core assets and focusing on engineering.

This move is part of a broader effort to address internal problems and rising energy prices, which have affected the company in recent years.

The planned adjustment of the production network and optimization of administration will lead to the loss of about 5,000 jobs by 2030, in addition to the 11,000 jobs cut in the steel division in November 2024.

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Novelis has partnered with a leading recycling company to develop a new aluminum recycling technology that can process up to 100% of post-consumer aluminum.

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This innovative technology will enable the recycling of aluminum from a wide range of sources, including old cars, aluminum cans, and other scrap metal.

The new technology can process up to 100,000 tons of aluminum per year, significantly increasing the global supply of recycled aluminum.

Novelis aims to make 80% of its aluminum products from recycled material by 2035.

The company's goal is to reduce its carbon footprint and reliance on primary aluminum production.

By advancing circularity, Novelis can help reduce waste and conserve natural resources.

This new technology is a major step forward in the company's efforts to increase recycling rates and reduce its environmental impact.

Novelis is committed to using 100% recycled aluminum in its products by 2050.

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Thyssenkrupp Materials Services is divided into three main business units: Distribution & Trading, Processing, and Solutions. These units work together to serve the company's diverse customer base.

With over 16,000 employees working across the globe, the company's presence is extensive, with around 380 branches in more than 30 countries. This wide reach allows Thyssenkrupp Materials Services to cater to its main customers, who are primarily located in Europe and North America.

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thyssenkrupp Materials Services is currently undergoing a significant transformation.

This change involves expanding the service component of their classic trading business with materials. They're now focusing on providing a range of services beyond just material supply, such as logistical management and product processing.

The company is transforming its organization to become faster and more flexible. This requires a new way of cooperation among teams.

Raw materials are being reevaluated with a focus on the service component in materials trading. This means considering how materials can be used to provide additional services to customers.

Digitization is driving change at thyssenkrupp Materials Services. IT is essential for their business and offers opportunities to design new solutions and reach more customers.

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thyssenkrupp Materials Services is divided into three main business units: Distribution & Trading, Processing, and Solutions.

These business units are the backbone of the company's operations.

Over 16,000 employees work for the company, making it a significant employer in its industry.

The company has a strong global presence with around 380 branches in more than 30 countries.

Its main customers are located in Europe and North America, serving specialist retailers and companies in the automotive and metal processing sectors.

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Thyssenkrupp Materials Services has made significant strides in digital transformation. The company runs a Digital Transformation Office (DTO) that forwards business area's digitalization goals.

The DTO's strategy includes adding e-commerce models progressively, as well as implementing a cultural change to an integral and collaborative work environment. This shift aims to make processes more efficient and adaptable.

In 2016, Materials Services launched an online shop called "materials4me" in several countries, targeting do-it-yourselfers, educational institutions, and small to medium businesses. The shop offers a range of products and services.

The company also operates two B2B-portals: "Materials Services Online-Portal" and "onlinelaserworks". The former grants access to order documents for key accounts, while the latter allows customers to upload CAD drawings for automatic cutting.

Materials Services has also invested in Additive Manufacturing (3D-printing) with the opening of a production center in Mülheim in 2017. This move aims to increase efficiency and reduce production time.

The company's "toii" platform, launched in 2017, is designed to accelerate automation and improve process efficiency. Compatible with machines from various manufacturers, "toii" aims to make production operations more streamlined.

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