Salzgitter owns 30% of the company's shares

The two German shareholders of Hüttenwerke Krupp-Mannesmann (HKM), Thyssenkrupp Steel and Salzgitter, are negotiating with the third owner, Vallourec, to transfer its stake in the Duisburg-based company. This was reported by Kallanish.

Salzgitter owns 30% of the plant’s shares, while Thyssenkrupp Steel owns 50%, but Salzgitter may be more serious about getting 20% of Vallourec, as it has similar activities in pipe production.

French Vallourec closed its plants in Germany last year, so it makes no sense for the company to keep its stake in HKM. The plan to sell the stake has not yet been officially approved, but Salzgitter executives expect it to happen.

«Vallourec has practically exited Hüttenwerke Krupp-Mannesmann, and we are in talks with them because we support HKM,» said Salzgitter CEO Gunnar Gröbler.

He added, however, that Thyssenkrupp Steel is the main stakeholder that has a decisive influence on HKM’s future.

Hüttenwerke Krupp-Mannesmann is an integrated steel mill that specializes in the production of slabs and billets for pipe production.

ArcelorMittal announced the signing of a $1.04 billion (€955 million) sale and purchase agreement for a 28.4% stake in Vallourec, one of the world’s leading seamless pipe producers. This will expand the company’s presence in the pipe business.

As GMK Center reported last fall, Vallourec shut down its pipe production in Germany. The French company announced its decision to close two German plants in 2022, and its efforts to find an investor for these industrial facilities were unsuccessful.