ThyssenKrupp’s ill-fated expansion in the Americas
In the week that saw the departure of three senior executives [all board members] from ThyssenKrupp, the question must arise – was the expansion plan in the Americas not subjected to some sort of feasibility study?
MCI steel consultants typically undertake market and related techno-economic appraisals for large steel industry investments. We double check current and future steel prices and other critical assumptions, including steelmaking raw material costs, current and future competition etc.
So the question arises – was ThyssenKrupp’s North American investment not subject to the normal due diligence type of investigation and if not, why not? Otherwise, perhaps there are also some consultants who should take some blame in addition to the executives from ThyssenKrupp?
For further reading, see Bloomberg news report.