German steelmakers thyssenkrupp Steel and Salzgitter AG have announced that they have reached an agreement on the future of the Hüttenwerke Krupp Mannesmann (HKM) joint venture following intensive negotiations.
Under the new agreement, thyssenkrupp Steel will sell its HKM shareholding to Salzgitter AG on June 1, 2026. As part of the arrangement, HKM’s steel deliveries to thyssenkrupp Steel will end at the close of 2028, four years earlier than the previously planned 2032 deadline. Financial terms related to the separation and adjustments to existing contractual arrangements will remain confidential.
As SteelOrbis reported previously, both companies have been seeking to divest their HKM interests as part of separate restructuring programs and capacity reduction plans. However, negotiations over the process had remained unresolved since February 2025.
Deal subject to approvals and third-party consent
The agreement still requires approval from the relevant bodies and a positive outcome from the business continuity review already commissioned by Salzgitter AG. It also depends on the consent of the third shareholder, French pipe manufacturer Vallourec SA, to sell its stake in HKM to Salzgitter.
Salzgitter AG CEO Gunnar Groebler said the agreement marks an important milestone toward securing an industrial future for HKM and provides clarity for all parties involved, including employees. He added that the plant could become part of Salzgitter’s transition toward low-carbon steel production.
