Struggling German industrial giant Thyssenkrupp signaled on Tuesday it would replace its embattled CEO Guido Kerkhoff.

Negotiations to end Kerkhoff's mandate should begin "shortly," the steel conglomerate's supervisory board executive and personnel committees said in a statement.

Read more: The long road to 'greener' steel

It did not say why Kerkhoff would be pushed out of the company's top position nearly a year after he took up the post.

German media reports have suggested the supervisory board was not satisfied with how he had handled the company at a time it faces a wave of problems, including overcapacity, falling profits and cheap Asian steel imports.

The Essen-based titan, which produces everything from car parts and elevators to trains and submarines, said last month it intends to speed up restructuring at some of its divisions.

A bid to merge with Indian multinational conglomerate Tata was dropped in May in response to resistance from the European Commission, dealing a blow to an attempt to create Europe's second-largest steel manufacturer.

Earlier this month, Thyssenkrupp was ejected from the DAX, Germany's benchmark index of 30 top blue-chip companies.

Thyssenkrupp shares have dropped more than 60 percent since 2018.

Advisory board chair Martina Merz is expected to take over as chairwoman for no more than 12 months.

cw/rt (AFP, dpa, Reuters)

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