Salzgitter AG Acquires HKM
07/09/2026 - Salzgitter AG has finalized its acquisition of Hüttenwerke Krupp Mannesmann (HKM) from joint venture partners thyssenkrupp and Vallourec, taking full control of the integrated mill in Duisburg, Germany.
Negotiations between Salzgitter AG and thyssenkrupp began in early February, and the deal was finalized Thursday, leaving Salzgitter will full ownership.
"With the acquisition of the shares held by our former co-shareholders, we are now in full responsibility at a historic steel industry site, which we aim to guide toward a sustainable future through a consistent focus on the green transition,” said Gunnar Groebler, chief executive officer of Salzgitter AG.
Salzgitter said it intends to future-proof the facility by investing in an electric arc furnace, with the intention to reduce CO2 emissions by 90% over the long term. But the company also will reduce the facility's headcount by approximately two-thirds over the long term and throttle back production to 2 million metric tons annually.
"Without these painful job cuts, Salzgitter AG would not have been able to complete the acquisition on its own. The alternative would have been to completely shut down the integrated steel mill in Duisburg. Only through this rigorous repositioning does HKM have a chance of a successful future in the long term," the company said.
With the deal completed, Salzgitter will move to restrucutre and fully integrate HKM into its operational structure. Salzgitter said it expects to eliminate 2,000 jobs by 2028.
"This is a difficult but necessary step. The imminent changes will be implemented in a responsible manner and, as a matter of principle, in a way that is socially compatible. The transformation can only succeed if employees and managers work together,” said Birgit Dietze, chief human resources officer at Salzgitter AG.
"With the acquisition of the shares held by our former co-shareholders, we are now in full responsibility at a historic steel industry site, which we aim to guide toward a sustainable future through a consistent focus on the green transition,” said Gunnar Groebler, chief executive officer of Salzgitter AG.
Salzgitter said it intends to future-proof the facility by investing in an electric arc furnace, with the intention to reduce CO2 emissions by 90% over the long term. But the company also will reduce the facility's headcount by approximately two-thirds over the long term and throttle back production to 2 million metric tons annually.
"Without these painful job cuts, Salzgitter AG would not have been able to complete the acquisition on its own. The alternative would have been to completely shut down the integrated steel mill in Duisburg. Only through this rigorous repositioning does HKM have a chance of a successful future in the long term," the company said.
With the deal completed, Salzgitter will move to restrucutre and fully integrate HKM into its operational structure. Salzgitter said it expects to eliminate 2,000 jobs by 2028.
"This is a difficult but necessary step. The imminent changes will be implemented in a responsible manner and, as a matter of principle, in a way that is socially compatible. The transformation can only succeed if employees and managers work together,” said Birgit Dietze, chief human resources officer at Salzgitter AG.
