Salzgitter AG has completed the acquisition of the remaining shares in Huttenwerke Krupp Mannesmann (HKM) from Thyssenkrupp Steel Europe and Vallourec, making the integrated steelworks in Duisburg a wholly owned subsidiary.
The acquisition follows an agreement reached by the three shareholders earlier this week. Financial terms of the transaction were not disclosed.
Salzgitter said steel production will continue at the Duisburg plant, supported by plans to install a new electric arc furnace (EAF) as part of the site’s green transformation. The investment is expected to reduce carbon emissions from steel production by around 90pct over the long term.
As part of the restructuring, HKM plans to reduce its workforce from approximately 3,000 employees to around 1,000 by the end of 2028, while crude steel production will be reduced from around 4.2 mln tons to approximately 2-2.5 mln tons per year. Salzgitter said the restructuring is necessary to restore the long-term competitiveness of the operation.
Under the agreement, Thyssenkrupp Steel’s supply contract with HKM will expire at the end of 2028, four years earlier than previously scheduled, while Vallourec said the transaction supports its strategy of focusing on its core seamless tube business.
Salzgitter said the integration of HKM into the group has begun and the financial impact of the acquisition will be reflected in its first-half 2026 financial results.
HKM produces slabs and billets across a wide range of steel grades and is progressing toward lower-carbon steelmaking, with longer-term plans to transition from blast furnace operations to electric arc furnace technology.