Thyssenkrupp terminates cooperation with Hüttenwerke-Krupp Mannesmann

Thyssenkrupp Steel Europe has officially started the process of terminating its long-term cooperation with Hüttenwerke-Krupp Mannesmann (HKM). The decision to terminate the multi-year contract for the supply of about 2.5 million tons of steel annually was approved by the Supervisory Board of the Group. According to the plans, the supply obligations will be fully terminated by December 31, 2032. This was reported by MarketSteel.

Thyssenkrupp notes that this step is an important part of the strategy to stabilize the business and reduce production capacity to 8.7-9 million tons of steel per year, instead of the current 11.5 million tons.

“Severing ties with HKM is a necessary step for our competitiveness,” said Dennis Grimm, spokesman for the company’s management board.

Despite the termination of the contract, the supply of materials to HKM has not yet been suspended, and the company’s production activities will continue. The company adds that a complete exit from HKM’s capital remains a priority, and Thyssenkrupp is ready to negotiate with potential buyers.

To ensure production at Thyssenkrupp’s subsidiary Hohenlimburg, which currently receives billets from HKM, one of the foundries in Duisburg is to be re-equipped. A new device, a Divider, will be installed there to produce the necessary steel billets. Tens of millions of euros of investment have already been allocated for the project.

Last November, Thyssenkrupp Steel announced that it would cut 11,000 jobs at the division. As noted, the planned adjustment of the production network and optimization of administration will lead to the loss of about 5 thousand jobs by 2030. Another 6,000 will be cut by outsourcing some operations to external service providers or by selling the business.