By Max Bernhard
Thyssenkrupp AG (TKA.XE) said Wednesday it plans to bundle its global forging activities into a new business unit, in an effort to enter new markets and decrease the business's dependency on providing parts for combustion engines.
The new unit, Forged Technologies, will be part of Thyssenkrupp's components division and have annual revenues of more than 1 billion euros ($1.17 billion), Thyssenkrupp said.
The German steel and industrial company expects the move will allow the unit to enter new markets and industries, and become less dependent on producing components for conventional combustion engines, said Karsten Kroos, chief executive of the components division. The mobility, raw materials and energy production sectors could be targeted with new products, the company said.
Thyssenkrupp has adjusted its automobile product portfolio towards undercarriage technology in the past years, with motor components constituting only 20% of revenue at present, Mr. Kroos said.
"By developing new forging products for new markets and clients, we want to decrease that share even further in the future and increase growth potential in the industrial components business instead," Mr. Kroos said.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard