HKM to Become Wholly Owned Salzgitter Subsidiary Under Agreement With thyssenkrupp Steel and Vallourec

HKM to Become Wholly Owned Salzgitter Subsidiary Under Agreement With thyssenkrupp Steel and Vallourec

(IN BRIEF) Salzgitter AG has reached a final agreement with thyssenkrupp Steel Europe and Vallourec to acquire 100% of Hüttenwerke Krupp Mannesmann, making HKM a wholly owned subsidiary of Salzgitter AG. The transaction secures the continuation of steel production at the historic southern Duisburg site, while placing HKM under Salzgitter’s full responsibility. Salzgitter plans to transform the site with a strong focus on lower-emission steel production, including investment in an electric arc furnace intended to reduce CO₂ emissions from steel production by 90% over the long term. The transformation will also include a major restructuring, with HKM’s workforce expected to fall from around 3,000 employees to approximately 1,000 in the long term and crude steel production reduced to two million metric tonnes per year. The restructuring is expected to be completed by the end of 2028. HKM’s supply contract with thyssenkrupp Steel will now expire at the end of 2028 instead of 2032. Salzgitter will quantify the acquisition’s impact on its 2026 revenue and earnings outlook when it publishes its half-year financial report on 11 August 2026.

(PRESS RELEASE) ESSEN, 10-Jul-2026 — /EuropaWire/ —  Salzgitter AG is set to acquire 100% of Hüttenwerke Krupp Mannesmann, after reaching a final agreement with co-shareholders thyssenkrupp Steel Europe and Vallourec on their exit from the joint venture.

The agreement means HKM will become a wholly owned subsidiary of Salzgitter AG, securing the continuation of steel production at the long-established southern Duisburg site while preparing the business for a major green transformation.

Salzgitter AG, thyssenkrupp Steel and Vallourec signed the final contracts on 8 July. The closing of the agreement and the transfer of the company shares are scheduled to take place shortly thereafter. Following completion, HKM will begin its integration into the Salzgitter Group.

The transaction follows a key issues paper agreed in early February between Salzgitter AG and thyssenkrupp Steel regarding the complete acquisition of HKM. After extensive negotiations, the parties have now reached a final agreement intended to serve the interests of all existing shareholders.

Salzgitter AG plans to invest in an electric arc furnace at the Duisburg site as part of its long-term transformation strategy. The investment is intended to make the site more future-proof and reduce CO₂ emissions from steel production by 90% over the long term.

The transformation will also involve a major restructuring of HKM. Due to economic challenges, the company’s workforce is expected to be reduced from around 3,000 employees today to approximately 1,000 in the long term. Salzgitter said the job reductions are a difficult but necessary condition for the acquisition and future repositioning of the site.

Without the restructuring, Salzgitter AG said it would not have been possible to complete the acquisition independently. The alternative would have been the full closure of the integrated steel mill in Duisburg. The company said HKM’s long-term future depends on a rigorous repositioning focused on lower-emission steel production.

Gunnar Groebler, Chief Executive Officer of Salzgitter AG, said the company had taken the time needed to negotiate a viable solution for HKM under Salzgitter’s sole responsibility.

“We took the time needed to negotiate with the co-shareholders to date regarding the continuation of HKM under our sole responsibility,” said Groebler. “Given the complexity of these discussions and the great significance of the outcome for the employees in Duisburg, exacting thoroughness clearly took precedence over speed in this process.”

He added that Salzgitter is now assuming full responsibility for a historic steel industry location and intends to guide it toward a sustainable future through a consistent focus on the green transition.

Groebler also thanked thyssenkrupp Steel and Vallourec for constructive negotiations and for their cooperation at HKM over the past years.

Marie Jaroni, Chief Executive Officer of thyssenkrupp Steel Europe AG, said the agreement creates the conditions for thyssenkrupp Steel to continue implementing its strategic realignment.

For thyssenkrupp Steel, the solution supports the concentration of production in northern Duisburg, with the aim of improving capacity utilisation, efficiency and profitability. HKM’s supply contract with thyssenkrupp Steel will now expire at the end of 2028, rather than at the end of 2032 as previously planned.

Philippe Guillemont, Chairman of the Board of Directors and Chief Executive Officer of Vallourec S.A., said Vallourec had previously announced its intention to sell its minority stake in HKM as part of its strategy to focus on core business areas and key markets. He said the agreement supports that objective while opening new opportunities for HKM in low-emission steel production.

The coming months will focus on integrating HKM into the Salzgitter Group. The restructuring process is expected to be completed by the end of 2028 and will include the planned workforce reduction as well as a decrease in crude steel production to two million metric tonnes per year.

Birgit Dietze, Chief Human Resources Officer at Salzgitter AG, said the restructuring is difficult but necessary and that the changes will be implemented responsibly and, as far as possible, in a socially compatible manner.

She added that dialogue with employee representatives and communication with the workforce will remain central to the process.

Salzgitter AG will support the site’s transformation and has announced that Andreas Betzler, Managing Director of Mannesmann Precision Tubes GmbH, Mannesmann Grossrohr GmbH and Mannesmann Line Pipe GmbH, will join HKM’s management team and report directly to the Executive Board of Salzgitter AG.

Salzgitter AG will provide details on the impact of the HKM acquisition on its revenue and earnings forecast for the 2026 financial year when it publishes its half-year financial report on 11 August 2026.

The parties have agreed not to disclose further details of the transaction.

Media Contacts:

Salzgitter AG:

Thorsten Moellmann
Head of Corporate Communications and Brand
Phone + 49 5341 21 2300
E-mail: moellmann.t@salzgitter-ag.de
www.salzgitter-ag.com

thyssenkrupp Steel:

Mark Stagge
Head of Public and Media Relations
Phone +49/173/5971798
E-mail: mark.stagge@thyssenkrupp-steel.com

SOURCE: thyssenkrupp