Salzgitter completes acquisition of HKM steel mill in Duisburg
Hüttenwerke Krupp Mannesmann (HKM) will become a wholly owned subsidiary of Salzgitter after completing "intensive and thorough negotiations" with other co-shareholders, thyssenkrupp Steel Europe and Vallourec. As it became known to Kallanish, all three parties signed contracts on July 8.
Tk Steel and Vallourec have long stated their intention to divest their shares, while Salzgitter has always shown interest in the slab plant in the south of Duisburg from the very beginning. The deal and, in fact, the preservation of the plant are accompanied by deep staff and job cuts.
Salzgitter plans to invest in the construction of an electric arc furnace at the HKM plant in order to transform the company, make it promising and reduce CO2 emissions from steel production by 90% in the long term. This transition will be accompanied by a significant reduction in the number of employees. In the long term, it is planned to reduce the number of jobs from the current approximately 3,000 to about 1,000. It says that without these painful job cuts, Salzgitter would not have been able to complete the acquisition on its own.
"To date, we have spent the time necessary to negotiate with shareholders regarding the continuation of HKM's operations under our sole responsibility. Given the complexity of these discussions and the enormous importance of their results for employees in Duisburg, demanding care clearly prevailed over speed in this process," says Gunnar Grobler, Salzgitter's executive director.
HKM's current supply contract with thyssenkrupp Steel expires at the end of 2028, rather than at the end of 2032, as previously planned. The new agreement will also mean the reorientation of slab sales to third parties, which has already become part of HKM's business following the closure of the Wallurek plants in Germany.
HKM slabs are considered particularly suitable for pipe production. Salzgitter Executive Director Andreas Betzler, Managing Director of Salzgitter tubes subs.
Thus, Mannesmann Precision Tubes, Mannesmann Grossrohr and Mannesmann Line Pipe companies will join the HKM management team.
Author: Christian Kehl, Germany
Kallanish.com