ThyssenKrupp says it is integrating its forging activities within its components business area to form one of the world's biggest forging organisations with sites in North and South America, Europe, India and China.

The new business unit – Thyssenkrupp Forged Technologies – has around 7,000 employees at 18 production sites and a broad distribution network in over 70 countries. The business unit has sales of over one billion euros and operates over 50 forging presses worldwide.

The business of the global company group will be managed from Thyssenkrupp's headquarters in Essen. The product portfolio includes forged and machined components and systems for the automotive and construction machinery sectors and for general mechanical engineering applications.

Dr. Karsten Kroos, CEO of Thyssenkrupp's components business area, said: "By combining our forging activities we are positioning Thyssenkrupp's components business to achieve further profitable growth. Central management of our worldwide production network will enable us to use our facilities more efficiently and align them even more closely to customer requirements. With our combined value creation capabilities we also aim to develop new products for new industries and markets. In the future we want to reduce our dependency on previous applications such as the traditional internal combustion engine, for which we still produce a large part of our forged components."

The company claims the new units holds a leading market position in crankshafts and in construction machinery components. By combining all materials and processing capabilities the aim is to further expand the product portfolio in the coming years. It says that 'promising applications are seen in raw materials mining, energy generation and the mobility sector'. To enable the development of new products for new customer and market segments, the sales and business development functions of the new company are being 'reorganised and strengthened centrally'.

"In recent years our product portfolio for the automotive segment has shifted toward chassis technology. Engine components now account for only twenty percent of our sales. By developing new forged products for new markets and customers we aim to reduce this share even further in the future and tap into growth potential in the industrial components business," said Kroos.

The new Forged Technologies business unit comprises the previously independent business units Forging & Machining, which is headquartered in Brazil and produces crankshafts, and Undercarriages, which is headquartered in Italy. Both units have been restructured in recent months and prepared intensively for integration. The organisational structure of the new business unit has been streamlined for greater competitiveness, the company says.