Using Annual Report from ThyssenKrupp &
Status Update with Expert Insights from News Report
With AI-driven Market Research &
Blue Ocean Strategy Development
Official Annual Report from ThyssenKrupp
from 30th of September 2024 with 338 pages of data
Revenue: €35.041 billion (-7% YoY)
Adjusted EBIT: €567 million (-19% YoY)
Net loss: €1.45 billion
Free cash flow before M&A: €110 million (-70%)
Challenge conventional wisdom.
Ask: "What are we absolutely certain is true?"
Recognize that most constraints are human-made, not physics-based.
Ask: "Why not?"
Rebuild solutions from the ground up, not by analogy.
Minimize costs by eliminating unnecessary components & complexity.
Optimize designs for scalable & efficient manufacturing.
Reduce part count & complexity for intuitive assembly.
Prioritize speed & eliminate production bottlenecks.
Current state:
High energy costs severely impacting margins.
First principles solution:
Implement real-time energy monitoring & load balancing.
Chain of thought:
Energy is pure physics - optimize usage patterns, heat recovery & peak load management without affecting production.
Current state:
Working capital tied up in excess inventory.
First principles solution:
Implement pull-based production system.
Chain of thought:
Each stored ton is wasted capital - optimize
order-to-delivery cycle using data analytics.
Current state:
Rigid production setup with 11.5M ton capacity.
First principles solution:
Modular production cells that can scale up/down.
Chain of thought:
Break down production into smallest autonomous units that can operate independently.
Current state:
Traditional scheduled maintenance.
First principles solution:
Predictive maintenance using IoT sensors.
Chain of thought:
Equipment fails based on physics, not schedules - monitor actual wear patterns.
Current state:
Siloed operations across divisions.
First principles solution:
Unified digital backbone for all operations.
Chain of thought:
Information flow should mirror material flow - eliminate artificial barriers.
Current state:
Traditional quality inspection points.
First principles solution:
In-line quality monitoring with ML.
Chain of thought:
Defects are physical deviations - detect them at source.
Current state:
Complex supplier network.
First principles solution:
Strategic supplier consolidation & vertical integration.
Chain of thought:
Each handoff adds cost - minimize transitions while maintaining flexibility.
Current state:
27.000 employees in steel division.
First principles solution:
Skills-based flexible workforce deployment.
Chain of thought:
Match skills to needs dynamically instead of fixed positions.
Current state:
Underutilized facilities.
First principles solution:
Dynamic capacity allocation.
Chain of thought:
Every machine hour is a physics-based opportunity - maximize value creation time.
Current state:
Traditional product portfolio.
First principles solution:
Data-driven product mix decisions.
Chain of thought:
Each product should maximize margin per ton of capacity.
total potential savings (€ annually)
for full implementation
of expected savings
Can be executed while maintaining workforce largely intact. Focus on physics-based optimization over pure cost-cutting.
Rationale:
- Leverages existing steel production capabilities
- Meets growing sustainability demands
- Creates recurring revenue streams
Concept:
Subscription model for green steel supply with carbon tracking
Details:
- Monthly/annual steel supply contracts
- Integrated carbon footprint monitoring
- Sustainability consulting services
- Performance-based pricing models
Potential: 2030: €5B → 2040: €12B → 2050: €20B
Rationale:
- Utilizes existing AI expertise
- Low capital requirements
- High margins
Concept: AI-driven optimization services for industrial processes
Details:
- Process optimization algorithms
- Predictive maintenance
- Energy efficiency solutions
- Cross-industry applications
Potential: 2030: €3B → 2040: €8B → 2050: €15B
Rationale:
- Leverages existing customer relationships
- Creates closed-loop material flows
- Minimal new infrastructure needed
Concept: Digital marketplace for steel recycling and remanufacturing
Details:
- Automated material tracking
- Premium pricing for recycled steel
- Return incentive programs
- Logistics optimization
Potential: 2030: €4B → 2040: €9B → 2050: €15B
Rationale:
- Untapped market segment
- Uses existing capabilities
- Higher margins than bulk sales
Concept: AI-driven custom materials solutions for smaller businesses
Details:
- Online configuration platform
- Technical consulting services
- Flexible order quantities
- Just-in-time delivery
Potential: 2030: €2.5B → 2040: €6B → 2050: €10B
Rationale:
- Differentiates commodity products
- Creates recurring revenue
- Leverages IoT expertise
Concept: Steel products with integrated sensors & AI
Details:
- Real-time monitoring capabilities
- Predictive maintenance
- Performance analytics
- Remote management
Potential: 2030: €3B → 2040: €7B → 2050: €12B
Rationale:
- Combines multiple product lines
- Growing green building market
- Regulatory tailwinds
Concept: Integrated sustainable building solutions
Details:
- Smart elevators and HVAC
- Energy management systems
- Sustainability certification
- Building automation
Potential: 2030: €4B → 2040: €8B → 2050: €14B
Rationale:
- Rapid EV market growth
- Existing automotive relationships
- Technical advantages
Concept: Advanced materials for electric vehicles
Details:
- Composite materials development
- Battery housing solutions
- Structural components
- Safety systems
Potential: 2030: €5B → 2040: €12B → 2050: €18B
Rationale:
- Growing e-waste problem
- Rare earth metal demand
- Existing recycling expertise
Concept: Specialized recycling for valuable materials
Details:
- Automated sorting systems
- Precious metal recovery
- Industrial waste processing
- Material purification
Potential: 2030: €3B → 2040: €8B → 2050: €15B
Rationale:
- High-margin software services
- Leverages industrial expertise
- Minimal capital investment
Concept: Virtual replicas for industrial optimization
Details:
- Real-time simulation
- Process optimization
- Maintenance planning
- Performance analytics
Potential: 2030: €2B → 2040: €6B → 2050: €12B
Rationale:
- Plastic replacement demand
- Materials science capability
- Regulatory pressure
Concept: Sustainable packaging solutions
Details:
- Bio-based materials
- Food-grade certification
- Customizable properties
- Circular economy integration
Potential: 2030: €3B → 2040: €7B → 2050: €13B
Rationale:
- Marine expertise foundation
- Growing autonomous shipping market
- Defense sector opportunities
Concept:
AI-powered vessels for defense & commercial use
Details:
- Autonomous navigation systems
- Remote fleet management
- Predictive maintenance
- Defense-grade cybersecurity
Potential: 2030: €4B → 2040: €10B → 2050: €18B
Rationale:
- Urgent climate action needs
- Chemical engineering expertise
- Government support likely
Concept: Industrial-scale carbon capture and utilization facilities
Details:
- CO2 conversion technology
- Storage solutions
- Carbon credit trading
- Industrial partnerships
Potential: 2030: €6B → 2040: €15B → 2050: €25B
Rationale:
- Additive manufacturing growth
- High-margin specialized parts
- Reduced material waste
Concept: Custom metal 3D printing service network
Details:
- Rapid prototyping
- Mass customization
- Quality certification
- Global print centers
Potential: 2030: €3B → 2040: €8B → 2050: €15B
Rationale:
- Energy transition acceleration
- Existing engineering capabilities
- Strong market growth
Concept: Integrated renewable energy systems & components
Details:
- Offshore wind systems
- Energy storage solutions
- Grid integration
- Maintenance services
Potential: 2030: €7B → 2040: €18B → 2050: €30B
Rationale:
- Supply chain resilience
- Local production trends
- Digital transformation
Concept: AI-enabled micro-factories near customers
Details:
- Automated production cells
- Real-time optimization
- Quality control systems
- Flexible manufacturing
Potential: 2030: €5B → 2040: €12B → 2050: €20B
Rationale:
- Aging population needs
- Materials expertise leverage
- Healthcare market growth
Concept: Advanced prosthetics and exoskeletons
Details:
- Smart materials integration
- Neural interfaces
- Customization platform
- Medical certification
Potential: 2030: €4B → 2040: €10B → 2050: €18B
Rationale:
- Growing space economy
- Specialized materials needs
- High-margin potential
Concept:
Advanced materials for spacecraft and satellites
Details:
- Thermal protection systems
- Radiation shielding
- Lightweight composites
- Testing facilities
Potential: 2030: €3B → 2040: €12B → 2050: €25B
Rationale:
- Urban air mobility growth
- Infrastructure expertise
- First-mover advantage
Concept: Complete urban air transport solutions
Details:
- Vertiport systems
- Charging infrastructure
- Air traffic management
- Safety systems
Potential: 2030: €4B → 2040: €15B → 2050: €28B
Rationale:
- Resource scarcity
- Marine engineering strength
- High barriers to entry
Concept: Sustainable deep ocean resource extraction
Details:
- Underwater vehicles
- Processing systems
- Environmental monitoring
- Resource mapping
Potential: 2030: €5B → 2040: €20B → 2050: €35B
Rationale:
- Rising sea levels
- Urbanization pressure
- Engineering capabilities
Concept: Floating infrastructure for coastal expansion
Details:
- Modular construction
- Climate resilience
- Utility systems
- Smart city integration
Potential: 2030: €8B → 2040: €25B → 2050: €40B
Rationale:
- Next-gen manufacturing
- Materials science leadership
- High-margin potential
Concept: Atomic-scale precision manufacturing platforms
Details:
- Nano-scale assembly
- Quantum materials
- Medical applications
- Custom molecule design
Potential: 2030: €2B → 2040: €20B → 2050: €45B
Rationale:
- Energy revolution potential
- Engineering capabilities
- First-mover advantage
Concept: Specialized materials for fusion power plants
Details:
- High-temperature materials
- Radiation shielding
- Precision components
- Safety systems
Potential: 2030: €4B → 2040: €25B → 2050: €50B
Rationale:
- Growing neurotech market
- Materials expertise fit
- Medical sector expansion
Concept: Biocompatible materials for brain-computer interfaces
Details:
- Nano-scale interfaces
- Biocompatibility testing
- Signal processing
- Medical certification
Potential: 2030: €3B → 2040: €18B → 2050: €40B
Rationale:
- Computing revolution
- Materials expertise
- High barriers to entry
Concept: Specialized materials for quantum computers
Details:
- Superconducting materials
- Quantum chip components
- Testing facilities
- Quality control
Potential: 2030: €4B → 2040: €25B → 2050: €55B
Rationale:
- Climate crisis solutions
- Engineering scale
- Global impact
Concept:
Large-scale environmental transformation systems
Details:
- Atmospheric processors
- Soil remediation
- Water purification
- Climate control
Potential: 2030: €6B → 2040: €35B → 2050: €70B
Contact me for AI, business, strategic & creative consulting:
EliasKouloures.com
10117 Berlin, Germany
elias.kouloures@gmail.com