German steel company Salzgitter AG has announced that Hüttenwerke Krupp Mannesmann (HKM) will become a 100% subsidiary following the decision of its co-shareholders, Thyssenkrupp Steel Europe and Vallourec, to exit the joint venture.
Steel production will continue at the Duisburg site, with Salzgitter will take full responsibility for HKM and prepare integrated steel mills to meet future challenges through a green transition strategy. Salzgitter said that after agreeing on a document on key issues with Thyssenkrupp Steel in early February, the parties finalized the agreement after extensive negotiations. Once the contracts are signed, the integration of HKM into the Salzgitter Group will begin on July 8, with the transfer of company shares due to take place later that day.
The company aims to reduce emissions by 90 percent
As part of the transformation, Salzgitter plans to invest in an electric arc furnace (EAF) at the plant in Duisburg to reduce carbon emissions from steel production by 90 percent over time. term. The company also plans to reduce steel production to 2 million tons per year.
Salzgitter said the integration of HKM into the group's organizational structure will continue in the coming months. The related 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 ongoing dialogue with employee representatives and the workforce
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