DUESSELDORF, Germany (Reuters) -An expert opinion on the financial needs of Thyssenkrupp (ETR:TKAG)'s crisis-hit steel division has given a positive view on its ability to continue as a going concern, the parent company said on Sunday. Thyssenkrupp said in a written response to a Reuters query that on the basis of the report, the parent company had made a financing commitment to secure the liquidity of the steel business for the next two years. "This means that there is now clarity regarding the financing situation of the steel division," said the company in its written response, confirming a report in Der Spiegel weekly.
Thyssenkrupp has commissioned two external reports to take a deep look at the steel business's short- and long-term financial health and needs. The first review will feed into the second report, which will be used for future decisions on the steel division and is due next year. Earlier this month, Thyssenkrupp said it had written down the value of its steel division by another 1 billion euros ($1.04 billion), blaming the sector's worsening outlook mainly on weak demand and Asian competition. Thyssenkrupp is pursuing a 50:50 steel joint venture with Czech billionaire Daniel Kretinsky but is seeking talks with other steelmakers in case that falls though after previous attempts to sell the division have failed in recent years.
($1 = 0.9600 euros)