Salzgitter on the Brink: Decision About Duisburger HKM Steel Soon
Salzgitter's Decision Approaching: Fate of the Steel Mill Hangs in Balance During Summer Months
Wondering what's next for HKM steel at the Duisburger steelworks? Salzgitter CEO Groebler has made one thing clear - he's got some big decisions to make this summer.
According to dpa, Vallourec and Thyssenkrupp Steel have already set their sights on phasing out HKM steel. But what about Salzgitter? Is the future of Duisburger HKM steel as grim as it seems?
Here's a quick breakdown of the situation: Thyssenkrupp Steel, which owns half of HKM, has decided to terminate its supply contract, with the obligation to buy about 2.5 million metric tons of steel annually ending latest by December 31, 2032. The aim is to reduce production capacity to stay competitive and retain its Duisburg-Nord location, which necessitates separation from HKM. However, the company is open to talks with serious buyers for its shares in HKM [2].
Salzgitter still holds around 30% of HKM shares. But with Thyssenkrupp pushing for a sale of its stake, and the joint venture facing potential closure due to failed sales and harsh market conditions, the survival of HKM in Duisburg looks uncertain [1][2]. Attempts to organize a "social contract" involving unions to manage closures and job losses are underway. However, the general consensus points towards the closure of the Duisburger HKM plant, which employs about 3,000 people [1][2].
So, what's next for Salzgitter? The steel giant is part of an ownership group that might be facing the breakup and potential closure of HKM in Duisburg, with Thyssenkrupp leading the move to end supply contracts and sell shares, effectively signaling an end to HKM's steel production at Duisburg in the near future.
Stay tuned for more updates as we await Salzgitter's decision this summer!
- The future of Salzgitter could be impacted by the potential closure of HKM steel, considering its significant stake in the joint venture, and the industry's recent trend towards reducing production capacity and remaining competitive.
- With competitors like Vallourec and Thyssenkrupp phasing out HKM steel and Thyssenkrupp pushing for a sale of its shares, the finance sector will be closely watching Salzgitter's decision this summer, as it could shape the landscape of the steel industry in Duisburg.
