Thyssenkrupp Steel Europe has officially commenced the process of ending its long-term partnership with Hüttenwerke Krupp Mannesmann (HKM). The company's Supervisory Board has approved the termination of the multi-year contract, which involves the annual supply of approximately 2.5 million tons of steel. The supply obligations are scheduled to be fully concluded by December 31, 2032.
Strategic Objectives Behind the Decision:
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Capacity Reduction: Thyssenkrupp aims to decrease its production capacity from the current 11.5 million tons to between 8.7 and 9 million tons per year.
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Business Stabilization: This move is part of a broader strategy to stabilize operations and enhance competitiveness in the steel market.
Dennis Grimm, a spokesman for Thyssenkrupp's management board, stated, "Severing ties with HKM is a necessary step for our competitiveness."
Implications and Future Plans:
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Continued Operations: Despite the termination plan, current material supplies to HKM will continue, ensuring ongoing production activities.
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Potential Divestment: Thyssenkrupp is prioritizing a complete exit from HKM's capital and is open to negotiations with potential buyers.
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Facility Upgrades: To support production at its Hohenlimburg subsidiary, Thyssenkrupp plans to re-equip a foundry in Duisburg by installing a new device, the Divider, for producing necessary steel billets. Investments totaling tens of millions of euros have been allocated for this project.
This decision follows recent developments where talks with a potential buyer for HKM collapsed. In February 2025, discussions with Hamburg investment company CE Capital Partners were discontinued. Thyssenkrupp expressed openness to further negotiations and, if a sale proves unfeasible, may explore closure scenarios with joint-venture partners.
These strategic moves underscore Thyssenkrupp's commitment to restructuring its operations to achieve greater efficiency and long-term sustainability in the evolving steel industry landscape.
Vietnam Steel by Hoa Sen Group
