Salzgitter AG has announced plans to become the sole shareholder of Huttenwerke Krupp Mannesmann (HKM) in Duisburg, following negotiations with Thyssenkrupp Steel, mediated by former Hesse minister-president Roland Koch, the companies said.
Under the proposal, Thyssenkrupp Steel will sell its 50pct stake in HKM to Salzgitter effective June 1, 2026. Slab deliveries from HKM to Thyssenkrupp Steel will end in 2028, earlier than the previously planned 2032. The financial terms of the unbundling will not be disclosed. Completion of the transaction is subject to approvals from Salzgitter’s governing bodies, a positive going-concern assessment, and agreement by the third shareholder, Vallourec, which currently holds a 20pct stake.
Following the transaction, HKM will continue operating under Salzgitter’s sole responsibility, though at a reduced scale. Annual production may be lowered from around 4.2 mln tons to approximately 2-2.5 mln tons. The plant produces slabs and billets in more than 2,000 steel grades and is in the process of transitioning toward low-CO2 steelmaking, with longer-term plans to replace blast furnaces with electric arc furnace technology.
Salzgitter is one of Germany’s leading steelmakers, with crude steel capacity of about 6.4 mln tons, while Thyssenkrupp Steel produces roughly 8.7-9 mln tons of crude steel annually and focuses on flat carbon and high-grade steel products.
