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The restructuring costs of Thyssenkrupp Steel Head are estimated at hundreds of millions euros

Marie Jaroni is the head of Thyssenkrupp’s steel division. She estimates that a restructuring agreement, which will result in the loss or outsourcing of 11,000 jobs, will cost the company three digit million euro, according to the Frankfurter Allgemeine Zeitung.

Thyssenkrupp Steel Europe said this week it had reached an agreement with the IG Metall to reduce or outsource 40 percent of its workforce. It will also reduce production to a level of shipping of 8,7 million to 9,0 million tons from 11.5 millions at present.

The restructuring costs us about a million euros. In an interview published Wednesday, Jaroni stated that the exact amount will depend on how many employees take up each offer.

She told the newspaper that this will be a good investment, as the company's personnel costs will permanently fall, and will be "a three-digit amount less per year than they are today."

Thyssenkrupp has been trying to sell its steel business for many years. In September, India's Jindal Steel International made an indicative offer for TKSE.

Jindal Steel has been conducting detailed due diligence in order to determine whether it should make a formal, binding offer to TKSE. TKSE is Germany's biggest steelmaker and had sales of 10,7 billion euros (12.46 billion dollars) last year.

(source: Reuters)