In a statement released on Friday, it was noted that the move could end the long-standing dispute with Thyssenkrupp over HKM’s future.
Salzgitter stated that resolving the uncertainty surrounding HKM—jointly owned by Salzgitter, Thyssenkrupp Steel Europe (TKSE), and France-based Vallourec with stakes of 50%, 30%, and 20% respectively—is of critical importance for the company, which employs around 3,000 people and has been facing difficulties for some time. The agreement is also expected to remove a major obstacle in Thyssenkrupp’s ongoing talks to sell TKSE to India-based Jindal Steel International. HKM’s future had been one of the key unresolved issues within the Thyssenkrupp group, amid pressure from low-cost competitors and weakening demand.
Commenting on the agreement, Salzgitter AG CEO Gunnar Groebler said:
“This agreement marks an important milestone and brings us one step closer to securing a successful industrial future for HKM. It provides clarity for all parties involved and offers a positive outlook for HKM employees. This will enable HKM to become part of the Salzgitter Group’s transformation toward low-CO₂ steel production. We would like to thank all parties for their constructive negotiations and support throughout this process.”
Thyssenkrupp Steel Europe CEO Marie Jaroni also emphasized the significance of the deal for the group, stating:
“This agreement is an important milestone for the further implementation of our industrial concept and thus for the future positioning of thyssenkrupp Steel. With this agreement, we have succeeded in reaching a fair and sustainable solution for all parties involved. In doing so, we are fulfilling our responsibility both to thyssenkrupp Steel as a whole and to the employees of HKM.”
According to the plans, Salzgitter will acquire the partners’ shares for an undisclosed amount and continue operations as the sole owner of HKM starting in June. In addition, HKM’s supply relationship with TKSE is expected to end in 2028—four years earlier than originally scheduled.
In a joint statement, the parties emphasized that the agreement is conditional upon a positive assessment of HKM’s future commissioned by Salzgitter and Vallourec’s agreement to sell its shares. French steel pipe producer Vallourec said it is open to selling its stake in HKM, noting that its current strategy no longer requires participation in the joint venture. Vallourec also described the agreement between Thyssenkrupp and Salzgitter as an important step toward a potential divestment process and stated that it would review the terms of the deal in detail in the coming days.
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