HKM ownership agreement advances as Vallourec approval becomes decisive step

German steel producers thyssenkrupp Steel and Salzgitter AG have reached an agreement on the future of Hüttenwerke Krupp Mannesmann (HKM) following extensive negotiations. Under the arrangement, thyssenkrupp Steel intends to transfer its HKM shareholding to Salzgitter AG effective 1 June 2026.

As part of the agreement, steel deliveries from HKM to thyssenkrupp Steel are scheduled to end in 2028, four years earlier than the previously agreed deadline of 2032. Financial terms of the separation and related contractual adjustments have not been disclosed.

Completion of the transaction remains subject to regulatory approvals and the outcome of a business-continuity assessment commissioned by Salzgitter AG. Crucially, the deal also requires the approval of Vallourec, the third shareholder in HKM, which must agree to sell its stake to Salzgitter for the ownership restructuring to proceed.

Salzgitter AG CEO Gunnar Groebler described the agreement as an important milestone for securing an industrial future for HKM and providing clarity for all stakeholders, including employees. He added that the site could play a role in Salzgitter’s transition toward low-carbon steel production.

For Vallourec, primarily known as a global manufacturer of premium tubular solutions, the decision represents a strategically relevant step in reshaping its industrial footprint and capital allocation within the European steel value chain.