Interview Carolin Nadilo, CFO of thyssenkrupp Decarbon Technologies

NADILO Decarbon Technologies is the parent company of four independent business units whose products help our customers around the world to achieve their climate goals. We are one of the leading manufacturers of slewing bearings. These are high-performance components that are used in wind turbines, solar plants and tidal power plants, among other things. We also have two plant construction businesses that specialize in engineering. One specializes in chemical technologies such as ammonia production and the other in cement production, including new processes for CO2 capture. And last but not least, we hold a majority in thyssenkrupp nucera, one of the leading suppliers of electrolysis technology, which is used to produce green hydrogen.  

NADILO In the short term, political uncertainty is leading to a change in the dynamics of investment decisions. While individual programms and subsidies are slowing down or being postponed, the long-term decarbonization of the industry remains an absolute necessity—and not just economically. Regardless of political cycles, companies will be forced to adapt to rising CO2 prices, changing regulatory requirements and changing market conditions. Nevertheless, we can critically question the extent to which the often-predicted exponential market growth path for green technologies is realistic or whether structural obstacles—such as high investment costs, inadequate infrastructure or a shortage of skilled workers—are slowing the pace. To meet these challenges, we are focusing on the geographical diversification of our business activities and a modular and standardized supply strategy. By entering new markets, we are reducing our dependence on individual political decisions. We work closely with our customers to develop individual financing solutions that simplify the transition to decarbonization. This forms the basis for sustainable profitable growth at Decarbon Technologies.  

NADILO Our goal is a balanced strategic approach that reduces risks from traditional plant engineering and thus paves the way for sustainable profitable growth. Our four business units, Rothe Erde, Uhde, Polysius and the listed thyssenkrupp Nucera, each have specific transformation programs that are tailored to the individual challenges of their markets. The decisive factor here is not only the development of new technologies, but their economic scalability and long-term profitability. Especially in capital-intensive industries, transformation requires precise management of investments, costs and risks. We are increasingly focusing on the modularization and standardization of our systems to reduce costs and increase the speed of implementation. Simultaneously, we are optimizing our internal processes and strengthening our service and spare parts business in order to create additional stable sources of income.

NADILO Cost optimization is in fact only one component. In the current phase, we are primarily concerned with structural dimensions that will have a long-term impact. We have defined three focal points: Firstly, we want to make our business models more resilient and retain their value. Secondly, we are expanding our service portfolio. And thirdly, we are strengthening our implementation quality through various operational improvement measures. To be more specific: In plant engineering, we want to shift away from local construction services towards more profitable engineering and procurement services. As a series supplier of components, we are further expanding our lucrative spare parts and service business, and with regard to operational excellence, we are driving forward the standardization and modularization of our products and services. These are all far-reaching changes in partly very established business models. Implementing these changes requires persuasiveness and sensitivity to get people on board. Ultimately, it is our global teams that make the transformation possible.  

NADILO Given the scale and complexity of the change that we have initiated in our segment, it is particularly important to actively communicate within the organization on an ongoing basis. Change processes are a source of uncertainty for many colleagues. It helps to have a clear vision that we can all align with. And we have an easy target image: the target image of the green transformation is clear, catchy and positive. This helps tremendously to actively implement change, even if it is sometimes painful. After all, our transformation also includes restructuring, relocation of sites or possible closures. In my experience, clear goals, no compromises in the implementation of necessary measures and lots of communication are the recipe for a successful transformation.  

NADILO Structured change management is essential. We rely on clear objectives, transparent communication and the consistent involvement of all stakeholders. We use modern digital channels and regular dialogue formats to ensure close coordination with the teams. However, acceptance of change is not given—especially when measures also involve uncomfortable decisions. Here, we rely on fact-based argumentation, consistent implementation and clear expectation management. Of course, we also offer personal exchanges and discussions—both physical and digital. I am convinced that no newsletter or post can replace a good conversation and direct interaction. However, you also have to celebrate successes, even small ones. Because they show us that we are on the right track.  

NADILO Absolutely. We increased sales by twelve percent in a generally difficult market environment in the past financial year. We were able to grow in the Middle East, Africa, China and North America in particular. But we also won important customer orders in Germany and Europe. For example, we are supplying one of the world's first CO2-neutral cement plants in Lägerdorf in Northern Germany with essential technology. We have also won an engineering contract from another major customer in the cement industry, the Greek Titan Group, for one of the largest carbon capture projects in Europe. And our hydrogen subsidiary thyssenkrupp nucera has concluded a reservation agreement with an energy company in Spain for production capacities for an electrolyzer with a capacity of 300 megawatts. These are all very important milestones for us that secure our business going forward.  

NADILO Thyssenkrupp Decarbon Technologies focuses on the development and provision of decarbonization and climate protection solutions for key industries such as the energy and chemical sectors, agriculture and the cement industry. These industries are under considerable pressure to transform. While the growth potential for green technologies is undeniable, the reality is much more nuanced. On the one hand, there are ambitious political targets and an increasing number of regulatory requirements. On the other hand, investment decisions are often hesitant due to economic uncertainties, geopolitical tensions and high capital costs. This leads to uncertainty among our customers and, most likely, to a delay in achieving political targets. We are countering this uncertainty by clearly positioning our technologies, which are already economically viable. Additionally, we are making targeted investments in partnerships with manufacturing companies and talking to political decision-makers in order to help shaping the regulatory framework and accelerate the scaling of our solutions. We want to offer technologies that can be implemented as quickly as possible and are proven to enable CO₂ savings.