Attempts to find a potential buyer for the company began in May 2013, but despite talks with bidders in recent weeks, ThyssenKrupp says none of the offers met its financial expectations.

ThyssenKrupp GfT Gleistechnik has two facilities at Bochum and Essen in Germany and supplies track equipment including rails, turnouts and crossings, fasteners, and ballastless track systems. The closure of the business is expected to result in the loss of up to 260 jobs.

In a statement, ThyssenKrupp said the "railway equipment business has no growth prospects in the German market and is under extreme cost pressure."

Dr Klaus Keysberg, member of ThyssenKrupp's management board said: "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."