Vallourec Withdraws from HKM, Taken Over by Salzgitter with Major Restructuring
Salzgitter AG has completed the acquisition of the entire capital of Hüttenwerke Krupp Mannesmann (HKM), the steel joint venture in Duisburg previously co-owned with thyssenkrupp Steel and Vallourec. The agreement, signed on July 8, grants the German group exclusive control of a historic steel mill which it plans to transform by significantly reducing its workforce.
Salzgitter Takes Sole Responsibility for Duisburg Steel Mill
Salzgitter AG becomes the sole owner of HKM following the signing of the contracts on July 8, 2026. The German group now assumes full responsibility for this integrated steel production site located in southern Duisburg, following the announced withdrawal of the two co-owners, thyssenkrupp Steel Europe and Vallourec.
This acquisition comes after several months of negotiations. In February 2026, Salzgitter and thyssenkrupp Steel had already agreed on the guiding principles of a complete acquisition. The closing of the transaction and the transfer of social shares were scheduled for July 9. Salzgitter plans to integrate HKM into its structures in the coming months, a process that will be accompanied by a major restructuring expected before the end of 2028.
Drastic Reduction in Workforce and Planned Green Investments
The transformation of the site will rely on a massive reduction in the workforce. HKM currently has about 3,000 employees; this number is expected to drop to about 1,000 in the long term. Without these job cuts, according to Salzgitter, the acquisition would not have been feasible on its own, the alternative being the complete closure of the steel mill.
On the industrial front, Salzgitter plans to install an electric arc furnace in Duisburg to modernize the site and reduce CO2 emissions from steel production by 90% in the long term. The production of raw steel is also to be reduced to two million tons per year. Concurrently, the supply contract of HKM from thyssenkrupp Steel, initially planned until the end of 2032, will end at the end of 2028.
Assessment of the Exiting Co-owners
For thyssenkrupp Steel, this solution allows a strategic reorientation aimed at concentrating production in northern Duisburg, thereby enhancing the use of capacities, efficiency, and profitability. Vallourec, which is selling its minority stake, thus returns to its strategy focused on its core business and key markets, according to CEO Philippe Guillemont. The French group maintains that by withdrawing from this joint venture, it 'opens new opportunities for HKM in the production of low-emission steel'.
