Salzgitter is to acquire full control of Hüttenwerke Krupp Mannesmann

The German steel producer Salzgitter has acquired the joint venture Hüttenwerke Krupp Mannesmann (HKM) in its entirety from its co-owners, Thyssenkrupp and Vallourec. This is stated in a company press release.

It is noted that the shareholders of the three companies have reached a final agreement on this matter. The parties signed the relevant contracts on 8 July.

Salzgitter plans to invest in the electric arc furnace in Duisburg to transform the facility, ensure its future viability and, in the long term, reduce carbon emissions from steel production by 90 per cent.

At the same time, the company plans to reduce HKM’s workforce to approximately 1,000 positions from around 3,000 by the end of 2028 — the alternative would have been the complete closure of the integrated steelworks, Salzgitter notes. There are also plans to reduce steel production at the plant to 2 million tonnes per year (currently, the two blast furnaces at Hüttenwerke Krupp Mannesmann have a combined pig iron production capacity of 5 million tonnes per year).

“With the acquisition of the shares held by our former co-shareholders, we now bear full responsibility for this historic steelmaking site, which we aim to steer towards a sustainable future, whilst maintaining a constant focus on the green transition,” said Gunnar Grebler, CEO of Salzgitter.

The supply contract between HKM and Thyssenkrupp Steel will expire at the end of 2028, rather than at the end of 2032 as previously planned.

The coming months will be used to complete the integration of HKM into the Salzgitter Group.

It should be recalled that in May this year, the European Commission approved the acquisition of sole control over Hüttenwerke Krupp Mannesmann GmbH by Salzgitter Mannesmann GmbH (SMG), a member of the Salzgitter Group. The decision was taken under the EU Merger Regulation.