ThyssenKrupp has reportedly approached BNP Paribas to find a suitable buyer for its automotive contract assembly business.
The automotive systems unit produces axle systems for car makers, It generates revenues of around €1bn.
Sources with knowledge of the matter were quoted by Reuters as saying that the German steelmaker has approached axle makers and private equity firms over a possible deal.
The proposed sale is part of the company's plan to strengthen its components technology business unit.
Last year, the components technology business reported adjusted earnings before interest and tax margin at 4.3%, while the automotive systems sub-division margin stood at around 1%, the sources said.
A source told the news agency: "On a value-add basis, sales of the contract assembly unit are round about €100m and the margin on that basis is more than 10%."
