Salzgitter plans to take over the HKM steelworks

Thyssenkrupp Steel has reached an agreement with Salzgitter on the future of Hüttenwerke Krupp-Mannesmann (HKM): Salzgitter intends to take full control of HKM in Duisburg on 1 June 2026 and continue operations on a reduced scale as the sole shareholder.

Following intensive negotiations and with the mediation of the former Minister-President of Hesse, Roland Koch, Salzgitter AG and Thyssenkrupp Steel AG have reached an agreement on the continuation of the HKM steelworks. The plan is for Thyssenkrupp Steel to sell its shares in HKM to Salzgitter AG on 1 June 2026.
Thyssenkrupp Steel had announced its intention to divest its 50 per cent stake in HKM. Salzgitter holds 30 per cent of the shares, whilst the French steel tube manufacturer Vallourec holds the remaining 20 per cent. Vallourec’s approval is still pending.
However, according to Salzgitter, the agreement provides for job cuts.
With around 3,000 employees, HKM is one of Germany’s leading producers of crude steel. HKM currently produces over four million tonnes of crude steel annually across two blast furnace routes, which is processed by the shareholders. HKM’s supply contract with Thyssenkrupp Steel will expire at the end of 2028, rather than at the end of 2032 as previously planned.
Gunnar Groebler, CEO of Salzgitter AG, commented that, through its integration into the Salzgitter Group, HKM could in future play a part in the Group’s transition towards low-carbon steel production.
Marie Jaroni, CEO of Thyssenkrupp Steel, describes this as an important milestone in securing a future-proof position for Thyssenkrupp Steel: “With this agreement, we have succeeded in achieving a fair and sustainable solution for all parties involved.”
Source: Salzgitter AG