Salzgitter AG to fully acquire Duisburg steelmaker HKM, plans electric arc furnace and 2,000 job cuts

On 8 July 2026 Salzgitter AG signed contracts to acquire the remaining shares of Hüttenwerke Krupp Mannesmann (HKM) in Duisburg, buying out thyssenkrupp Steel (50 % stake) and Vallourec (20 %). The German group becomes sole owner of the historic integrated steel site, which previously operated two coal‑fired blast furnaces.

Salzgitter intends to replace the blast furnaces with an electric‑arc furnace, a move it says will cut CO₂ emissions by up to 90 % and halve crude‑steel capacity from roughly five to two million tonnes per year. To finance the green transition, €200 million in federal and state funding has been pledged.

The restructuring includes a workforce reduction from about 3,000 employees to roughly 1,000 by the end of 2028, meaning around 2,000 jobs will be lost. Executives described the step as “painful but necessary” and emphasized that without the cuts the acquisition could not proceed, warning that the alternative would have been a plant closure.

The impact of the takeover on Salzgitter’s financial outlook will be disclosed in its half‑year results on 11 August 2026. The existing supply contract with thyssenkrupp Steel is set to expire at the end of 2028, earlier than the previously planned 2032 date.