Salzgitter and thyssenkrupp Steel agreed on 6 February on a key-issues paper under which Salzgitter will buy thyssenkrupp's stake in Hüttenwerke Krupp Mannesmann and continue the Duisburg steelworks as its sole shareholder.
Why Salzgitter AG is buying Hüttenwerke Krupp Mannesmann (HKM)
Salzgitter plans to run HKM on a smaller scale as part of its move to low-CO2 steel. It intends to replace the two blast furnaces with an electric arc furnace and cut crude steel output to about 2 million tonnes a year. thyssenkrupp Steel said the agreement was a milestone in carrying out its industrial plan, after it and Vallourec had long sought to leave the joint venture.
Deal terms and financing
The parties agreed not to disclose the financial details of unwinding their contracts. HKM's slab deliveries to thyssenkrupp Steel will end in late 2028 instead of 2032. The February agreement targeted a transfer of the shares on 1 June 2026.
Regulatory approvals and timing
The agreement required board approvals, a positive going-concern report commissioned by Salzgitter, and Vallourec's agreement to sell its 20% stake. The European Commission cleared Salzgitter's sole control in May. The contracts were signed on 8 July and the deal closed on 9 July 2026, according to thyssenkrupp Steel.
Market context
HKM employed about 3,000 people and had two blast furnaces with 5 million tonnes a year of pig iron capacity. Salzgitter plans to reduce the workforce to about 1,000 by the end of 2028 and said the alternative would have been closing the integrated plant.
