Production at the traditional steelworks in southern Duisburg will continue as Salzgitter Group assumes full responsibility for HKM and prepares the site for the future with a green transformation strategy.
In early February, Salzgitter AG and thyssenkrupp Steel reached an agreement on the key principles for the full acquisition of HKM. Following intensive negotiations, the parties finalized an agreement that serves the interests of all existing shareholders. The contracts were signed on July 8, officially launching the integration of HKM into the Salzgitter Group.
Electric arc furnace investment planned
Salzgitter AG plans to invest in an electric arc furnace (EAF) at the Duisburg site to modernize the plant and reduce CO₂ emissions from steel production by up to 90% in the long term.
Due to economic challenges, the transformation will also involve a significant workforce reduction. The company aims to reduce HKM's workforce from around 3,000 employees to approximately 1,000 over the long term. According to Salzgitter AG, the acquisition would not have been possible without this difficult restructuring, with the alternative being the complete closure of the integrated steelworks in Duisburg.
Groebler: "Thoroughness was more important than speed"
Salzgitter AG CEO Gunnar Groebler said the company deliberately took the necessary time to hold discussions with the joint venture partners to ensure HKM could continue operating under Salzgitter's sole ownership.
"Given the complexity of these negotiations and the importance of the outcome for the employees in Duisburg, thoroughness was more important than speed throughout this process. We are pleased to have found a satisfactory solution for all parties," Groebler said.
He added: "With the acquisition of our former partners' shares, we have now assumed full responsibility for this historic steelmaking site. By maintaining a consistent focus on green transformation, we aim to guide HKM toward a sustainable future. We would like to thank thyssenkrupp Steel and Vallourec for the constructive negotiations and the excellent cooperation over recent years."
thyssenkrupp Steel to concentrate production in northern Duisburg
Marie Jaroni, CEO of thyssenkrupp Steel Europe AG, described the agreement for HKM as an important milestone for all parties involved.
"For us, this solution creates the necessary conditions to consistently implement our strategic restructuring. By concentrating production in northern Duisburg, we will sustainably improve capacity utilization, efficiency and profitability. At the same time, we look back with great appreciation on our shared history with HKM. We would like to express our sincere thanks to our employees for their decades of commitment and to our partners for their constructive cooperation," she said.
HKM's supply agreement with thyssenkrupp Steel will now expire at the end of 2028 instead of the previously planned end of 2032.
Vallourec: Agreement creates new opportunities for low-emission steel production
Philippe Guillemot, Chairman of the Board and CEO of Vallourec SA, recalled that the company had previously announced its intention to divest its minority stake in HKM in order to focus on its core business and key markets.
Guillemot welcomed the agreement announced by Salzgitter, stating that the transaction fully supports Vallourec's strategy while creating new opportunities for HKM in low-emission steel production.
Restructuring expected to be completed by the end of 2028
Over the coming months, HKM will be fully integrated into the Salzgitter Group. This process will run in parallel with a restructuring program scheduled for completion by the end of 2028.
Under the plan, HKM's workforce will be reduced from approximately 3,000 employees to around 1,000, while annual crude steel production capacity will be reduced to 2 million metric tons.
Salzgitter AG Chief Human Resources Officer Birgit Dietze said: "This is a difficult but necessary step. The upcoming changes will be implemented responsibly and, wherever possible, in a socially responsible manner. The transformation can only succeed if employees and management work together. Dialogue with employee representatives and open communication with the workforce will remain a central part of the process."
New executive to join HKM management team
Salzgitter AG confirmed that it will fully support the transformation of the Duisburg site. Andreas Betzler, Managing Director of Mannesmann Precision Tubes GmbH, Mannesmann Grossrohr GmbH and Mannesmann Line Pipe GmbH, will join HKM's management team and report directly to the Salzgitter AG Executive Board.
Salzgitter AG will disclose the financial impact of the HKM acquisition on its fiscal year 2026 revenue and earnings forecast in its half-year financial report, scheduled for publication on August 11, 2026.
The parties have agreed to keep the detailed terms of the transaction confidential.
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