Overview
- On Thursday Salzgitter signed contracts to make Hüttenwerke Krupp Mannesmann a 100% subsidiary and announced a plan to reduce the workforce from about 3,000 to roughly 1,000 by the end of 2028.
- Salzgitter will cut HKM’s crude‑steel output from about four million tonnes a year to around two million tonnes by end‑2028 and agreed that HKM will stop supplying Thyssenkrupp Steel by the end of 2028.
- The company plans to replace aging blast furnaces with an electric‑arc furnace and has secured roughly €200 million in federal and North Rhine‑Westphalia support for the conversion.
- Financial terms of the takeover are confidential but parties agreed that the previous owners contributed transition funds to help finance the technical conversion and social measures.
- The deal is part of broader sector reshaping with Thyssenkrupp Steel Europe and Vallourec exiting the joint venture and TKSE pursuing a larger restructuring that includes thousands of job actions through 2030, a shift that will reshape supply and employment in the region.