German steelmaker Salzgitter AG has announced that Hüttenwerke Krupp Mannesmann (HKM) will become a wholly owned subsidiary following the decision by its co-shareholders, thyssenkrupp Steel Europe and Vallourec, to withdraw from the joint venture.
According to the company, steel production will continue at the Duisburg site, with Salzgitter assuming full responsibility for HKM and preparing the integrated steelworks for future challenges through a green transition strategy. Salzgitter stated that, after agreeing on a key issues paper with thyssenkrupp Steel in early February, the parties finalized an agreement following extensive negotiations. Following the signing of the contracts on July 8, the integration of HKM into the Salzgitter Group will begin, with the transfer of the company shares scheduled to take place later the same day.
Company targets 90 percent emissions reduction
As part of the transformation, Salzgitter plans to invest in an electric arc furnace (EAF) at the Duisburg site to reduce carbon emissions from steel production by 90 percent over the long term. The company also plans to reduce crude steel production to 2 million mt per year.
Salzgitter stated that the integration of HKM into the group’s organizational structure will continue over the coming months. The associated restructuring process is expected to be completed by the end of 2028. The company said the transformation will be implemented in a socially responsible manner through continued dialogue with employee representatives and the workforce.
