Salzgitter to acquire joint venture Hüttenwerke-Krupp Mannesmann

German steel producer Salzgitter has announced its intention to buy out the co-owners of the Hüttenwerke-Krupp Mannesmann (HKM) joint steel venture to become the sole owner of the company from mid-2026.

Thyssenkrupp owns 50% of HKM’s shares, Salzgitter owns 30%, and French pipe manufacturer Vallourec owns 20%.

As noted, after intensive negotiations, Thyssenkrupp Steel and Salzgitter reached an agreement to continue the activities of Hüttenwerke-Krupp Mannesmann.

«According to the plan, Thyssenkrupp Steel will sell its shares in HKM to Salzgitter AG on June 1, 2026. Supplies from HKM to Thyssenkrupp Steel will cease at the end of 2028, rather than at the end of 2032 as previously planned. It has been agreed that the financial details of the separation of the existing contractual relationships agreed in the key issues document will not be disclosed,» the statement said.

The implementation of the agreement is subject to the approval of Salzgitter’s governing bodies and a positive assessment of the going concern report, which the latter has already commissioned. An additional prerequisite is the agreement of the third owner, Vallourec, to sell its shares.

Gunnar Grebler, CEO of Salzgitter, called the agreement an important milestone and a step toward creating a secure industrial future for HKM. Hüttenwerke-Krupp Mannesmann will thus become part of the group’s transition to low-carbon steel production.

Marie Harony, CEO of Thyssenkrupp Steel, described the agreement as a step towards further implementing the company’s industrial concept and ensuring its future balance.

Vallourec, for its part, said it was ready to sell its stake in HKM, adding that its strategy no longer required participation in the joint venture, Reuters reported. The French pipe manufacturer sees the agreement reached between Thyssenkrupp and Salzgitter as an important step towards a potential sale of assets and will analyze its terms in the coming days.

In December last year, Thyssenkrupp called on all shareholders to find a solution for Hüttenwerke Krupp-Mannesmann. The point of contention was Salzgitter’s lawsuit against Thyssenkrupp.