German steel company Salzgitter AG has entered into a definitive agreement to acquire 100% of the shares of Hüttenwerke Krupp Mannesmann (HKM) following the decision of thyssenkrupp Steel Europe and Vallourec S.A to withdraw from the joint venture. This is reported in the Salzgitter press release.
The financial terms of the deal were not disclosed. Upon closing of the transaction, HKM will become a subsidiary of Salzgitter AG. In early February 2026, Salzgitter AG and thyssenkrupp Steel agreed on the basic terms for the full buyout of HKM, which take into account the interests of all shareholders.
Salzgitter intends to carry out a deep modernization of the Duisburg metallurgical plant by investing in the construction of an electric arc furnace to reduce CO₂ emissions by 90% and ensure that the enterprise meets the requirements of "green" energy.
Salzgitter expects to complete the integration process by the end of 2028. The transition to a new production model will require a large-scale restructuring with a reduction in HKM staff from 3,000 to 1,000 and a reduction in annual steel production to 2 million tons.
The deal is in line with ThyssenKrupp AG's restructuring program, as the withdrawal of HKM shareholders will allow the company to focus production on the northern site in Duisburg, increasing capacity utilization, efficiency and profitability of the business. At the same time, the parties agreed on the early termination of the current contract for the supply of HKM products to thyssenkrupp Steel at the end of 2028 instead of 2032.
The deal is also in line with Vallourec S.A.'s plans to focus on key business areas and core markets. The transfer of the enterprise under the full control of Salzgitter opens up new opportunities for the development of HKM as a producer of steel with low CO₂ emissions.
Hüttenwerke Krupp Mannesmann (HKM) is an integrated metallurgical plant in Duisburg, Germany.
Salzgitter AG is a German metallurgical and technological company, one of Europe's largest producers of steel and pipe products. The headquarters is located in the city of Salzgitter (Lower Saxony, Germany).
ThyssenKrupp AG is one of the largest industrial concerns in Germany in the field of steel production, automotive components and in the defense sector. The headquarters is located in Essen (Germany). The company's equity is 9.5 billion euros, assets are estimated at 29.33 billion euros with a market capitalization of 7.5 billion euros. The staff includes 94 thousand people.
Vallourec S.A. is a French manufacturer of steel pipes, one of the world leaders in the field of premium pipe solutions, primarily for the oil and gas industry, as well as for other industrial sectors. The headquarters is located in Meudon (France).
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