GERMANY: ThyssenKrupp has announced plans to close its ThyssenKrupp GfT Gleistechnik track component business, which it says is unprofitable and 'under extreme cost pressure'.

The company said the decision would result in the sale or closures of sites and the loss of up to 260 jobs by the end of the 2014-15 financial year.

'Unfortunately we see no realistic chance of the railway equipment business making a value-adding contribution to the Group's earnings in the long term', said Dr Klaus Keysberg of the Materials Services management board on March 11.

The company had been seeking to sell its Railway and Construction operating units since May 2013, and held talks with a number of potential purchasers. However, none of the bids met its financial expectations. The profitable ThyssenKrupp Bautechnik construction business is to be retained and 'repositioned' with the Materials Services business unit.