German steelmaker Salzgitter has stated that it is not intending to completely acquire and operate Hüttenwerke-Krupp Mannesmann (HKM), which is a steel joint venture between itself, fellow German steelmaker thyssenkrupp Steel and French pipe manufacturer Vallourec, and that it intends to sell its stake in HKM, according to a statement published on the Frankfurt Stock Exchange. Also, thyssenkrupp does not have any plans to keep HKM.
In fact, thyssenkrupp Steel, the joint venture’s largest shareholder, wants to divest its stake as part of its restructuring plan. The company is now in talks with an undisclosed investment company for the sale of HKM. However, the German steelmaker pointed out that, if the divestment plan fails, the owners would work on another solution. “The primary goal is to sell the company shares in HKM and thereby secure jobs,” Miguel López, CEO of thyssenkrupp AG, commented.
Thyssenkrupp owns 50 percent, Salzgitter owns 30 percent and Vallourec 20 percent in HKM. The joint venture has an annual production capacity of 5.6 million mt of slab and round bars.