Salzgitter AG becomes the full owner of HKM
Salzgitter AG has acquired 100% of the shares of Hüttenwerke Krupp Mannesmann GmbH (HKM). Due to the decision of thyssenkrupp Steel Europe and Vallourec to exit the joint venture, HKM will become a wholly owned subsidiary of Salzgitter AG. Production at the traditional steel mill in the southern part of Duisburg will continue as the Salzgitter Group assumes full responsibility for HKM and prepares the site for the future through a "green transformation". Strategy. In early February, Salzgitter AG and thyssenkrupp Steel reached an agreement on key principles for the full acquisition of HKM. After intensive negotiations, the parties have finalized an agreement that meets the interests of all existing shareholders. The contracts were signed on July 8, which officially marked the beginning of HKM's integration into the Salzgitter Group of companies. Planned investments in electric arc furnace Salzgitter AG plans to invest in an electric arc furnace (EDP) at the Duisburg site to modernize the plant and reduce CO₂ emissions from steel production in the long term to increase by up to 90%. Due to economic problems, the transformation will also entail significant staff reductions. The company plans to reduce the number of HKM staff from about 3,000 to 1,000 in the long term. According to Salzgitter AG, the acquisition would not have been possible without this complex restructuring, the alternative to which would have been the complete closure of the united steel plant in Duisburg. Grobler: "Thoroughness was more important than speed," Gunnar Grobler, CEO of Salzgitter AG, stated that the company deliberately spent the necessary time negotiating with its joint venture partners to ensure that HKM could continue to operate under Salzgitter's sole management. "Given the complexity of these negotiations and the importance of their outcome for employees in Duisburg, thoroughness throughout the entire process was more important than speed. We are pleased that we have found a satisfactory and beneficial solution for all parties," Grobler said. He added: "With the acquisition of the shares of our former partners, we have now assumed full responsibility for this historic steel company. With a constant focus on green transformation, we strive to lead HKM towards a sustainable future. We would like to thank thyssenkrupp Steel and Vallourec for constructive negotiations and excellent cooperation in recent years." thyssenkrupp Steel will focus production in northern Duisburg, Marie Jaroni, CEO of thyssenkrupp Steel Europe AG, called the cooperation agreement with HKM an important milestone for the company. All the parties involved. "For us, this decision creates the necessary conditions for the consistent implementation of our strategic restructuring.