Salzgitter AG to acquire 100% of Hüttenwerke Krupp Mannesmann (HKM)
- Salzgitter will take full ownership of HKM after thyssenkrupp Steel and Vallourec withdraw.
- Contracts were signed on July 8; closing and share transfer are scheduled for later the same day.
- Salzgitter plans to install an electric-arc furnace to reduce CO2 emissions from steel production by 90% long term.
- Restructuring will cut HKM headcount from ~3,000 to ~1,000 and reduce crude steel output to 2 million t/yr; thyssenkrupp supply contract now expires end-2028.
Deal and timeline
Salzgitter AG has reached a final agreement to acquire the remaining shares in Hüttenwerke Krupp Mannesmann after co-shareholders thyssenkrupp Steel and Vallourec announced their withdrawal. Contracts were signed on July 8 and the integration of HKM into the Salzgitter Group will begin immediately, with closing and share transfer scheduled for the same day.
Transition plan
Salzgitter plans to invest in an electric-arc furnace at the Duisburg site to transform the integrated steelworks and make it future-proof. The company says the conversion aims to reduce CO2 emissions from steel production by 90% over the long term.
Restructuring and operations
The transformation includes a significant restructuring: crude steel production will be reduced to two million metric tons per year and the workforce is to fall from approximately 3,000 employees to about 1,000, a process expected to be completed by the end of 2028. Salzgitter says changes will be implemented in dialogue with employee representatives and with attention to social compatibility.
Governance and financial impact
Andreas Betzler will join the HKM management team and report directly to Salzgitter's Executive Board. Salzgitter will quantify the acquisition's impact on revenue and earnings in its half-year financial report on August 11, 2026. Details of the agreement remain confidential by mutual NDA.
Source: thyssenkrupp