Salzgitter AG Completes Acquisition of HKM

Salzgitter AG has finalized its acquisition of Hüttenwerke Krupp Mannesmann (HKM), becoming the sole proprietor after former co-shareholders thyssenkrupp Steel and Vallourec exited the joint venture. The agreement, concluded after extensive negotiations, signifies a pivotal step for Salzgitter, as it assumes full responsibility for HKM, aiming to align the steelworks with a green transition strategy.

Investments are planned for an electric arc furnace at the Duisburg site to enhance sustainability and significantly cut CO2 emissions. Workforce reductions will accompany these changes, decreasing employees from approximately 3,000 to about 1,000. Despite the complexity and challenges, stakeholders acknowledge the strategic imperative of these transformations to secure a viable long-term future for HKM.

Marie Jaroni of thyssenkrupp Steel Europe and Philippe Guillemont of Vallourec support the agreement, citing alignment with their strategic goals while expressing gratitude for past collaborations. Salzgitter will continue restructuring HKM through to 2028, focusing on reducing crude steel production and fostering social compatibility during transitions.