• Shareholders Salzgitter, thyssenkrupp Steel, and Vallourec reach final agreement

• Hüttenwerke Krupp Mannesmann becomes a wholly owned subsidiary of Salzgitter AG

• Steel production continues at the location rooted in tradition – with a clear focus on the green transition and a reduced workforce 

Steel production continues at the southern Duisburg location that is steeped in tradition. Hüttenwerke Krupp Mannesmann will become a wholly owned subsidiary of Salzgitter AG in the future, after the two co-shareholders, thyssenkrupp Steel Europe and Vallourec, announced their intention to withdraw from the joint venture. With this step, the Salzgitter Group is assuming full responsibility for HKM and aims to prepare the integrated steelworks for the challenges ahead with a clearly defined plan and a total commitment to the green transition.

In early February, Salzgitter AG and thyssenkrupp Steel had agreed on a key issues paper regarding the complete acquisition of HKM. In the course of intensive and meticulous negotiations, the parties have now reached a final agreement that serves the interests of all existing shareholders. Following the signing of the contracts on July 8, the integration of HKM into the Salzgitter Group is set to commence. The closing of the agreement and transfer of the company shares are scheduled to take place later today. 

Salzgitter AG plans to invest in an electric arc furnace in Duisburg to transform the site, make it future-proof, and reduce CO₂emissions from steel production by 90 percent over the long term. Due to economic challenges, this transition will be accompanied by a significant reduction in the number of employees. The plan is to reduce the number of people employed by HKM from the current approximately 3,000 to about 1,000 in the long term. Without these painful job cuts, Salzgitter AG would not have been able to complete the acquisition on its own. The alternative would have been to completely shut down the integrated steel mill in Duisburg. Only through this rigorous repositioning does HKM have a chance of a successful future in the long term.

“We took the time needed to negotiate with the co-shareholders to date regarding the continuation of HKM under our sole responsibility. Given the complexity of these discussions and the great significance of the outcome for the employees in Duisburg, exacting thoroughness clearly took precedence over speed in this process. "We are pleased that we have now found a satisfactory solution for all parties involved," as Gunnar Groebler, CEO of Salzgitter AG stated.

"With the acquisition of the shares held by our former co-shareholders, we are now in full responsibility at a historic steel industry site, which we aim to guide toward a sustainable future through a consistent focus on the green transition. "We would like to thank thyssenkrupp Steel and Vallourec for the constructive negotiations and the good cooperation at HKM over the past years," says Gunnar Groebler.

Marie Jaroni, CEO of thyssenkrupp Steel Europe AG: "The solution developed for HKM represents an important milestone for everyone involved. For us, it creates the conditions necessary to consistently implement our strategic realignment: By concentrating production in northern Duisburg, we are sustainably raising capacity utilization, efficiency, and profitability. At the same time, we look back with great appreciation on our shared history with HKM. "We would like to extend our special thanks to our employees for decades of partnership, as well as to our co-shareholders for their constructive contributions." HKM’s supply contract with thyssenkrupp Steel will expire at the end of 2028, rather than at the end of 2032 as previously planned.

Philippe Guillemont, Chairman of the Board of Directors and CEO of Vallourec S.A., comments: "Vallourec had previously announced its intention to sell its minority stake in HKM in order to pursue a strategy focused on Vallourec's core business and key markets. We therefore welcome the agreement announced today by Salzgitter, which fully supports this goal, while at the same time, opening up new opportunities for HKM in the production of low-emission steel."

The coming months will now be used to complete the integration of HKM into the Salzgitter Group's structures. This will be accompanied by a restructuring process – expected to be completed by the end of 2028 – that will reduce the workforce from approximately 3,000 to about 1,000, as well as a reduction in crude steel production to two million metric tons per year. "This is a difficult but necessary step. The imminent changes will be implemented in a responsible manner and, as a matter of principle, in a way that is socially compatible. The transformation can only succeed if employees and managers work together. "Dialogue with employee representatives and communication with the workforce remain a central part of the ongoing process," explains Birgit Dietze, Chief Human Resources Officer at Salzgitter AG.

Salzgitter AG will fully support the transformation of the site. Andreas Betzler, Managing Director of Mannesmann Precision Tubes GmbH, Mannesmann Grossrohr GmbH, and Mannesmann Line Pipe GmbH, is set to join the management team at HKM and report directly to the Executive Board of Salzgitter AG. Salzgitter AG will quantify the impact of the HKM acquisition on its revenue and earnings forecast for financial year 2026 when it publishes its half-year financial report on August 11, 2026.

The parties to the agreement have agreed to non-disclosure concerning the details of the agreement.   

Contact Salzgitter AG:

Thorsten Moellmann
Head of Corporate Communications and Brand
Phone + 49 5341 21 2300
E-mail: moellmann.t@salzgitter-ag.de
www.salzgitter-ag.com

Contact thyssenkrupp Steel:

Mark Stagge
Head of Public and Media Relations
Phone +49/173/5971798
E-mail: mark.stagge@thyssenkrupp-steel.com

• Catch4Climate pioneering plant officially inaugurated in Mergelstetten, Germany

• World's first industrial-scale demonstration of thyssenkrupp Polysius' Pure Oxyfuel technology for cement production

• Groundbreaking technology enables capture of up to 95% of CO₂ emissions from the clinker production process

• thyssenkrupp Calvion takes over for further development, scale-up and commercialization

• Project marks a major milestone toward decarbonizing one of the world's most carbon-intensive industries

The CI4C (Cement Innovation for Climate) Pure Oxyfuel plant in Mergelstetten (state of Baden-Württemberg) has been officially inaugurated, marking a major milestone in the decarbonization of cement production. thyssenkrupp Polysius, together with thyssenkrupp Calvion, is proud to have contributed to this landmark project in close collaboration with the CI4C consortium (Buzzi SpA / Dyckerhoff GmbH, Heidelberg Materials AG, SCHWENK Zement GmbH & Co. KG and Vicat S.A) and additional project partners. 

As part of the “catch4climate” initiative, the plant represents a research and development facility for carbon capture technologies in cement production. With a capacity of around 450 tonnes of clinker per day, the installation provides an important platform for research, validation, and further development.  

“For the first time, Pure Oxyfuel is being demonstrated at industrial scale in a cement plant. This achievement reflects the dedication, expertise and pioneering spirit of everyone involved in the project. At thyssenkrupp Polysius, we are proud to have translated a bold vision into operational reality and to contribute a technology that can help transform one of the world’s most challenging industries to decarbonize,” said Christian Myland, CEO of thyssenkrupp Polysius. 

At the core of the plant is the Pure Oxyfuel process. By replacing ambient air with pure oxygen in the clinker burning process, the technology significantly increases the CO₂ concentration in the exhaust gas, creating the conditions for capturing nearly 95% CO₂ emissions from cement production — including unavoidable process emissions from limestone calcination.  

thyssenkrupp Polysius led the overall engineering, plant design, and execution of the facility, successfully translating an innovative concept into industrial-scale reality. The Pure Oxyfuel technology developed and implemented within the “catch4climate” project will be further advanced within thyssenkrupp Calvion, ensuring continuity and focused development beyond this milestone.

With the transfer of the technology into thyssenkrupp Calvion’s portfolio, the focus is now on advancing, scaling, and commercializing Pure Oxyfuel solutions. Calvion will further develop the process to support carbon capture deployment across cement and other hard-to-abate industries. 

“This inauguration is much more than the opening of a pilot plant. It demonstrates that Pure Oxyfuel has reached industrial reality. The global cement industry has been eagerly awaiting this milestone, and we are proud that thyssenkrupp Calvion will now take the technology to the next stage — further developing, scaling and commercializing Pure Oxyfuel for customers around the world,” said Lukas Schoeneck, CEO of thyssenkrupp Calvion. 

The inauguration of the CI4C plant underlines thyssenkrupp’s commitment to driving sustainable innovation and represents an important step toward climate-neutral cement production at scale.

• Team 212CD selected as Preferred Supplier for Canada's Canadian Patrol Submarine Project, potentially delivering twelve 212CD submarines, marking a new chapter in defence and industrial cooperation between Canada, Germany and Norway.

• Government-to-government framework will support the delivery of a modern submarine capability while establishing a sovereign Canadian sustainment enterprise.

• Partnership will strengthen national security, NATO interoperability and long-term industrial cooperation while generating lasting economic benefits across Canada.

• TKMS’s profitable growth path will be supported by an increase of the current order backlog by more than 50%, with the first boat delivered by 2033.

TKMS welcomes the Government of Canada's decision to select Team 212CD as the Preferred Supplier for the Canadian Patrol Submarine Project (CPSP) potentially delivering twelve 212CD submarines. This marks a historic milestone for Canada, Germany and Norway and the beginning of a long-term strategic partnership that will strengthen security, industrial cooperation and collective defence across the North Atlantic.

The announcement marks the start of a new chapter in defence cooperation between three close NATO allies, bringing together shared expertise and common security interests. For Canada, the decision represents a significant long-term investment in maritime security and sovereign capability. For Germany and Norway, it reflects a deepening partnership with a key ally and a shared commitment to advancing transatlantic security, technological cooperation and operational interoperability. For TKMS, the potential extension of the 212CD program beyond Germany and Norway will further support the company’s ongoing profitable growth path. The current order backlog will be supported by more than 50%.

"This is an important day - for Canada, Germany and Norway," said Oliver Burkhard, CEO at TKMS. "With the CPSP, we are proud to take on the largest single order in the history of TKMS – and with it comes a clear promise: we will deliver. The CPSP is more than a procurement program; it is the foundation of a long-term strategic partnership between trusted allies. Together with Canada, we are taking the next step as NATO partners – built on trust, shared values and a common commitment to defence. We stand ready to work alongside the Government of Canada, Canadian industry and our partners in Germany and Norway to deliver a world-class submarine capability that will strengthen security, create economic opportunity and generate lasting benefits for future generations. Last year our independence marked the beginning of a new era for TKMS. The CPSP is the next chapter of that journey. Canada will benefit from the full force of the current unique European program – the combined strength of Germany and Norway, united in purpose, and committed to delivering the very best and to create a new kind of transatlantic coalition."

Co-designed by an Arctic nation for the Arctic, as well as for the conditions of the North Atlantic and warm waters of the Pacific, the Type 212CD submarine is built for the North, not simply adapted to it. It is in the Arctic where Canada and its NATO allies increasingly need credible deterrence and presence.

Dr. Volkmar Dinstuhl, Chairman of the Supervisory Board at TKMS: “Canada’s trust in Team 212CD is testament to TKMS’s international competitiveness. This is a very important demonstration of NATO’s capacity to act and the capabilities of the German and European defence industries. The fact that Canada is committing to a joint submarine capability with the 212CD together with Germany and Norway underlines the strong and trustful security and industrial cooperation between close allies. With this decision, TKMS confirms its role as a reliable strategic partner for maritime security worldwide. A good day for Canada, Germany and Norway. A good day for TKMS as a leading maritime powerhouse."

The partnership will contribute to the development of a sovereign Canadian sustainment enterprise, support workforce development and skills transfer, strengthen domestic supply chains and create opportunities for Canadian businesses to participate in a broader international defence ecosystem over time. The final proposal will generate CAD 167 billion in total economic activity across Canada, deliver over CAD 86 billion in economic impact, and over 650,000 job-years across Canada during the life of the project. Thus, the partnership will not only deepen our joint defense cooperation, but also open up a new dimension of industrial collaboration.

"Canada's decision in favour of Team 212CD is a tremendous success for TKMS – and a powerful validation of our strategy. With the spin-off of TKMS, we laid the foundation for the company to unfold its full potential as an independent champion in the international naval business. Today's announcement proves that this was the right path. We are convinced that this trilateral partnership between Canada, Germany and Norway will create lasting value – for TKMS, for our shareholders and for the transatlantic security architecture. thyssenkrupp stands firmly by TKMS's side as the company takes this important step," said Miguel López, CEO of thyssenkrupp AG.

TKMS thanks all employees and teams involved for their tireless efforts, its Canadian Partners, and the Governments of Germany and Norway for their strong support and the significant contribution they made throughout the competition. We look forward to continuing our successful partnership. As the program enters its next phase, TKMS will work closely with the Government of Canada, Germany, Norway and Canadian industry partners to advance contract negotiations, industrial planning, workforce development and implementation activities. TKMS expects to deliver the first 212CD submarine by 2033.

More information at: www.team212cd.ca