According to market analysts Moody’s, ThyssenKrupp AG, will very likely sell its beleaguered Steel Americas business this year.

This disposal, following on from the disposal of its Inoxum stainless steel operations, which were combined with Outokumpu in December 2012, is credit positive as it will lessen TK’s reliance on carbon and stainless steel and free it from businesses that Moody believe will generate low returns on capital, if not losses, for many years to come.

The disposals will put greater emphasis on TK’s capital goods businesses which comprises Elevator Technology, Components Technology and Industrial Solutions (the latter consisting of Plant Technology and Marine Systems) will represent around 40% of TK’s sales but consistently contribute, Moody believe, over half of its segment-level adjusted EBIT.

TK’s remaining materials businesses, Steel Europe and Materials Services, will remain a large part of the company but in the future the capital goods businesses will receive a higher proportion of capital investment and be the focus of acquisition activities.

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