Germany, Duisburg: Salzgitter AG has reached a final agreement to acquire 100% of Hüttenwerke Krupp Mannesmann (HKM), after co-shareholders thyssenkrupp Steel Europe and Vallourec decided to withdraw from the joint venture.
Following the agreement, HKM will become a wholly owned subsidiary of Salzgitter AG. The transaction follows a key issues paper agreed earlier this year between Salzgitter and thyssenkrupp Steel, with closing and transfer of shares expected after the signing of the contracts.
Salzgitter said it will take full responsibility for the traditional steel production site in southern Duisburg and prepare it for future requirements. The company plans to invest in an electric arc furnace as part of its long-term transition towards lower-emission steelmaking.
The transformation is expected to reduce CO₂ emissions from steel production by up to 90% over time. However, the restructuring will also involve a significant workforce reduction, with employee numbers at HKM expected to fall from around 3,000 to about 1,000.
According to Salzgitter, the alternative to the restructuring would have been the complete closure of the integrated steel mill. The company said the repositioning is necessary to give HKM a viable long-term future.
The restructuring process is expected to be completed by the end of 2028, with crude steel production reduced to around two million tonnes per year.
thyssenkrupp Steel said the agreement supports its own strategic realignment, while Vallourec said the sale allows it to focus on its core business and key markets.
Source: thyssenkrupp Steel Europe
