Salzgitter to head HKM steel joint venture
German steel producer Salzgitter has announced that from June 1, 2026, it will become the sole owner of the Hüttenwerke Krupp Mannesmann (HKM) joint venture, agreeing to buy out the company's co-owners, according to a joint statement from Salzgitter and thyssenkrupp Steel.
According to the plan, starting from June 1, 2026, thyssenkrupp Steel will sell its shares in HKM to Salzgitter for an undisclosed amount, giving the latter exclusive responsibility in a reduced amount.
Thyssenkrupp owns 50% of HKM shares, while Salzgitter and Vallourec control 30% and 20% of the company's shares, respectively.
The implementation of the plan depends on the approval of Salzgitter's governing bodies and a positive assessment of the business continuity report that Salzgitter has already prepared. The agreement is also conditional on the fact that the third owner, Vallourec, will also agree to sell its shares in Salzgitter.
HKM will continue to supply slabs to thyssenkrupp Steel until the end of 2028, instead of the previously planned 2032.
In 2021, Thyssenkrupp closed its thick-sheet plant, which used HKM slabs as raw materials. In addition, in accordance with the restructuring proposal, thyssenkrupp planned (in the ratio of 3:4) reduce production (by a ratio of 3:5) from 11.5 million tons per year to 8.7-9.0 million tons per year and separate from (in the ratio of 3:6)HKM (in the ratio of 3:5) – either by selling the asset or closing the plant if no buyer has been found.
"This agreement is an important milestone and brings us one step closer to creating a reliable industrial future for HKM. It brings clarity to everyone involved in this process, while at the same time offering HKM employees a positive perspective. Thus, HKM will be part of the transition to low-CO2 steel production in the Salzgitter Group," said Gunnar Grobler, CEO of Salzgitter.
To learn more about decarbonization projects in Europe and around the world, check out the Global Green Steel Profile.
HKM's capacity is about 6 million tons of steel per year, and semi-finished products are produced using the "blast furnace— oxygen furnace" (BF - BOF) technology.
Salzgitter's statement confirmed rumors that one of HKM's shareholders plans to continue production, despite earlier plans to sell the asset, as the plant can supply slabs to the spot market to replace imports.
European rolled products, which produce mainly thick-rolled products, are heavily dependent on slab imports, although the introduction of the Carbon Emission Control Mechanism (CBAM) for steel imports into the EU from January 2026 has significantly increased costs. European refiners have estimated CBAM duties on slab imports at 40-80 euros per ton, but these figures may be higher if the exporting steel mill does not receive confirmation of emissions on time, and in this case, buyers