The deal signed on July 8 keeps steelmaking at Duisburg alive, with an electric arc furnace plan, a 90% long-term CO2 reduction target, and restructuring due by end-2028.
Salzgitter AG said it will acquire full control of Hüttenwerke Krupp Mannesmann after co-shareholders thyssenkrupp Steel Europe and Vallourec agreed to exit the joint venture, keeping steel production running at the southern Duisburg site while shifting it toward lower-emission output. Contracts were signed on July 8, with closing and the share transfer scheduled for later the same day, and integration into the Salzgitter Group set to begin immediately. The company plans to invest in an electric arc furnace (steelmaking unit using electricity) in Duisburg, aiming to cut CO2 emissions from steel production by 90 percent over the long term. The overhaul comes with deep restructuring: HKM’s workforce is due to fall from about 3,000 to roughly 1,000 over time, with the process expected to be completed by the end of 2028, while crude steel production is to be reduced to two million metric tons a year. Salzgitter said those reductions were necessary to make the acquisition viable and that the alternative would have been a complete shutdown of the Duisburg integrated steel mill. thyssenkrupp Steel said the agreement supports its strategic realignment by concentrating production in northern Duisburg, and confirmed HKM’s supply contract with thyssenkrupp Steel will now expire at the end of 2028 instead of the end of 2032. Vallourec said the transaction aligns with its strategy to exit its minority stake and focus on its core business and key markets. Salzgitter added that Andreas Betzler will join HKM’s management team and report directly to its executive board, while the company plans to quantify the deal’s impact on its revenue and earnings forecast for financial year 2026 when it publishes its half-year financial report on August 11, 2026.