Salzgitter to downsize and continue operating HKM steel plant
German steel producer Salzgitter has outlined a conditional strategy to keep operations running at the Hüttenwerke Krupp Mannesmann (HKM) steel plant in Duisburg, even as its joint venture partners move toward an exit. However, the company made clear that continued operations would require a substantial downsizing of the facility.
HKM is currently owned by thyssenkrupp Steel with a 50% stake, Salzgitter with 30%, and French pipe producer Vallourec holding the remaining 20%. Both thyssenkrupp and Vallourec have signaled their intention to withdraw from the venture, prompting Salzgitter to assess scenarios under which the plant could remain active.
According to Salzgitter, a continuation of operations would likely involve a sharp reduction in capacity—from the current level of around 4.2 million tonnes per year to roughly 2–2.5 million tonnes. The restructuring plan under consideration also includes replacing blast furnace production with electric arc furnace technology and significantly reducing the workforce, potentially from about 3,000 employees to nearly 1,000.
The company stressed that any takeover of the remaining shares would depend on clear preconditions. These include cost-sharing by the exiting shareholders for restructuring measures and layoffs, as well as firm steel procurement commitments from thyssenkrupp covering the next two to three years.
Adding to the uncertainty surrounding the plant’s future are ongoing arbitration proceedings between Salzgitter and thyssenkrupp. These disputes relate to financial responsibilities tied to restructuring and post-withdrawal liabilities, with outcomes that could materially influence the feasibility of maintaining HKM operations.
While Salzgitter has not ruled out a future for the Duisburg facility, the company’s statements underline that any continuation would be fundamentally different in scale and structure from HKM’s current configuration.
Thyssenkrupp idles BF9 at Duisburg on weak demand, import pressure
This information was also confirmed by the company’s spokesperson on the same day.
“Thyssenkrupp Steel has taken blast furnace 9 at the Hamborn plant out of operation,” the spokesperson said. “This is the company’s response to the further consolidation of structural changes in the European steel market. In particular, overcapacity and – to an increasing extent – the pressure of imports are significantly blunting the competitiveness of domestic production.”
The company did not comment on the date of possible restart.
BF 9 has capacity of 1.7 million tonnes per year of pig iron, according to Fastmakrets’ information.
Thyssenkrupp’s Duisburg facility has a designed production capacity of around 11.7 million tpy of pig iron from four blast furnaces (BFs) and produces around 11 million tpy of crude steel per year.
Steel shipments from thyssenkrupp’s steel assets amounted to around 9 million tonnes over the past three years, according to Fastmarkets data.
By the end of 2024, thyssenkrupp already announced plans to cut steel output by 2.5 million tpy, with 11,000 jobs likely to be lost, consequently, Fastmarkets reported.
Market brief
There was a short-lived rebound in apparent demand for flat steel at the end of July and into early August, related to restocking activity, expectations of the implementation of Europe’s Carbon Border Adjustment Mechanism (CBAM) and the introduction of new, tougher, steel safeguard measures to limit import trade flows in 2026.
But in September, prices have stabilized and European mills have struggled to push through increases because of insufficient end-user demand.
In mid-October, shortly after the European Commission had proposed a new, stricter trade measures to replace steel safeguards, European mills started to announce price rises for the first quarter delivery hot-rolled coil.
Under the new plan, only 18.3 million tonnes per year of steel would enter the EU without being subject to tariffs. Steel shipments exceeding that volume would face duty at 50%.
For comparison, carbon steel imports into the EU in 2024 amounted to 26.36 million tonnes, up by 6.4% from 2023’s 24.78 million tonnes, according to European steel association Eurofer.
On October 13 leading European steelmaker ArcelorMittal has raised its offers for HRC scheduled for delivery in December by €20 ($23) per tonne to €630 per tonne ex-works or delivered, depending on the region, sources told Fastmarkets on Monday October 13.
Meanwhile, for January delivery, offers were as high as €650 per tonne ex-works or delivered.
During the steel trade fair Blechexpo, held in Stuttgart on October 21-24, other European mills followed the move, aiming for €620-630 per tonne ex-works for Janaury delivery HRC.
According to both buyers and sellers, the introduction of CBAM and new trade regime was anticipated to heighten uncertainty, thereby limiting new imports or aligning import prices more closely with those in Europe. Consequently, domestic HRC prices were projected to rise.
It remains to be seem if the market can fully absorb the increase, considering lack of real demand.
“We do expect an increase for the first quarter delivery coil, but the question is, how much and for how long it will last since demand from end-users is not rising,” a buyer in Germany said.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €600 per tonne on October 23, up by €2.86 per tonne from €597.14 per tonne on Wednesday October 22.
The index rose by €8.75 per tonne week on week and by €21.25 per tonne month on month.
Earlier in October, ArcelorMittal idled one BF at the Fos-sur-Mer plant in France after an accident, halving steel output at the site for at least one month, Fastmarkets reported.
These stoppages along with lower imports could result in some supply tightness in the first quarter 2026 and therefore support a domestic price rebound, sources said.
The market for imported HRC has been very quiet lately because most of the overseas suppliers are offering HRC with delivery in the first quarter of 2026.
Therefore, prices for these tonnages will be subject to EU’s CBAM.
Turkish offers were indicated at €530 per tonne CFR, inclusive of the anti-dumping duty. According to a local buyer, when factoring in CBAM charges, which are estimated at €55 per tonne, along with unloading and delivery costs, the effective price would approach European levels, at approximately €620–630 per tonne delivered.
Meanwhile, offers from Indonesia were reported at around €470 per tonne CFR, excluding CBAM-related expenses.
Thyssenkrupp Steel launches intelligent scheduling system
In partnership with German software company Smart Steel Technologies (SST), German steelmaker Thyssenkrupp has successfully launched an intelligent scheduling system designed to enhance automation, efficiency, and product quality in its modernized production network at Duisburg-Bruckhausen.
In partnership with German software company Smart Steel Technologies (SST), German steelmaker Thyssenkrupp has successfully launched an intelligent scheduling system designed to enhance automation, efficiency, and product quality in its modernized production network at Duisburg-Bruckhausen.
A new era in steel production
The new software solution automatically manages scheduling for one of Europe’s most advanced steel plant networks. This network includes:
- continuous casting line No. 4
- hot strip mill No. 4 (fully modernized)
- slab storage facilities
By integrating automation and fast-reactive scheduling, Thyssenkrupp Steel has significantly raised the level of production planning efficiency.
Collaboration with Smart Steel Technologies
The SST Scheduling System was developed and tested in close collaboration before being deployed into production. Project leaders highlighted the project as a “strong impetus for the digital future of the steel industry”.
Smart Steel Technologies will continue to handle both the maintenance and future development of the scheduling platform, ensuring long-term adaptability and technological upgrades.
Thyssenkrupp launches new continuous casting line
Germany’s Thyssenkrupp said it has started trial production of steel slabs at its new continuous casting line No. 4 at its Bruckhausen plant in Duisburg.
Further trial production runs will take place in the coming weeks, the steelmaker said.
The modernization also includes a new fully automated slab storage yard and completely modernized hot strip mill 4 with a new preliminary line and two new walking beam furnaces.
“The aim is to further expand production of high-quality steel grades with the highest standards of strength, dimensional accuracy, and surface quality – particularly for applications in electric mobility, lightweight construction, and the energy sector,” Thyssenkrupp said.
The Bruckhausen upgrade is one of the largest modernization projects in Thyssenkrupp’s history and the central investment package in its 20-30 Strategy. The aim of the project is to make the Duisburg production site more efficient and flexible, and focus on products with higher added value.
Maria Tanatar
Thyssenkrupp starts trial production at new continuous slab caster
Germany-based steelmaker thyssenkrupp has announced that it has reached a significant milestone at its Bruckhausen site in Duisburg, with the successful start of trial operation and casting of the first slabs on the new continuous casting line 4 (SGA 4), marking the largest single investment project in recent decades.
“The new SGA 4 will form part of one of the most modern production networks in the European steel industry. It is a central building block in our strategy to ensure there is a bright future for efficient and sustainable steel production at the Duisburg location. Equipped with high-tech automation and casting technology, the line enables high-precision, flexible and efficient slab production with significantly improved shape accuracy and surface quality. Advantages that will help our customers in their competitive environment,” said Dennis Grimm, thyssenkrupp Steel’s CEO.
The company pointed out that successful production of the first slabs is an important step on the way to taking the new plant complex fully into operation, which will be taking place step by step over the next few weeks. These include the new fully automated slab storage yard and the completely modernized hot strip mill 4 with a new preliminary line and two new walking beam furnaces.
According to thyssenkrupp, the SGA 4 replaces the previous casting rolling line and, together with the new hot strip mill 4, forms an integrated plant network. The aim is to further expand production of high-quality steel grades with the highest standards of strength, dimensional accuracy, and surface quality – particularly for applications in electric mobility, lightweight construction.
Thyssenkrupp to install line for medium-wide strip
Thyssenkrupp Steel is planning to convert a continuous casting line at its Duisburg-Nord site amid changes to its offtake supplies for medium-wide strip steel.
A divider is to be installed, which will make it possible to cast the required narrow slabs, it explains. The necessary investment funds in the high double-digit million range have already been approved.
The steelmaker recently announced it will terminate the offtake of supplies from HKM after 2032.
The steelmaker has sourced narrow slabs produced by Duisburg mill HKM (Hüttenwerke Krupp-Mannesmann) to roll them at its Hohenlimburg site to medium-wide strip of 600mm width, used by automotive and other industrial customers.
According to a seasoned industry observer, medium-wide strip in the past used to be produced by various EU steelmakers. This has been widely replaced by normal-width strip, which is then slit into narrower strip.
“Making medium-wide strip with dedicated technology takes more effort, but it has advantages,” he tells Kallanish. For example, higher pressure can be exerted to roll harder steels with a higher carbon content, he says.
A spokeswoman at tk Steel concurs and notes that the final products are often small in terms of tonnage, but with tight tolerances when it comes to small precision parts, like blades, or certain parts used in cars.
Thyssenkrupp Steel is the only European steelmaker left to produce medium-wide strip on bespoke facilities, she says.
Christian Koehl Germany
Thyssenkrupp may sell distribution arm, sources say
Earlier this week, international media reported Thyssenkrupp’s intention to sell its distribution arm, Thyssenkrupp Material Services, as a part of a major restructuring effort intended to increase efficiency by divesting less profitable parts of the company.
“Our goal is to transform Thyssenkrupp into a high-performance and sustainable company with a portfolio of sectors geared to profitable growth,” the company’s spokesperson told Fastmarkets on April 11. “We want every single Thyssenkrupp business to develop in the best possible way and to achieve a sustainable competitive position.
“The declared aim is to generate a permanently positive value and cash flow contribution for the group, and a reliable dividend payment to our shareholders,” the spokesperson added.
“We will continue to pursue our strategy, with a focus on the separation of the Steel and Marine divisions. The primary aim for all sectors is to increase growth and performance. This may include growth through partnerships and portfolio activities, provided this makes sense strategically and technologically,” the spokesperson said.
In August 2024, the company sold a 20% share in its steel business to a Czech private energy company, and was discussing the sale of a further 30% stake.
Thyssenkrupp Materials Services is the group’s trading arm, offering a wide range of processing and logistics services, and employing around 16,000 people. In the fiscal year 2023/24, Thyssenkrupp Materials Services’ adjusted earnings before interest and taxes (EBIT) was €204 million ($231 million). The division’s sales for the same period were €12.1 billion.
By 2030, Thyssenkrupp, which is the largest steelmaker in Germany, intends to cut steel output by 2.5 million tonnes per year, with 11,000 jobs likely to be eliminated by the fundamental changes taking place across the European steel market.
Thyssenkrupp is currently building a 2.5 million tpy DRI module in Duisburg that was expected to have capacity for around 5 million tpy of low-CO2 steel by 2030.
In March 2025, Thyssenkrupp put on hold a hydrogen tender for its green steel plant due to elevated prices, but said that it was still committed to the Duisburg site’s green transformation.
Crisis in European steel market
According to the Organization for Economic Co-operation & Development (OECD), the nominal crude steelmaking capacity in Europe is well over 200 million tonnes per year, but actual output volumes have been lagging far behind that in recent years.
In 2022, crude steel production across Europe amounted to 136.30 million tonnes, down from 152.60 million tonnes in 2021, according to data from the World Steel Association (worldsteel). The decline was due to massive output cuts that were implemented by European mills in the third and fourth quarters of 2022, due to deteriorating demand and falling steel prices.
In 2024, steel output rebounded slightly to 129.5 million tonnes compared with 126.3 million tonnes in 2023, according to worldsteel. But the total volume was still below the 159.4 million tonnes recorded pre-Covid in 2019.
Steel production in Germany amounted to 37.23 million tonnes in 2024, up by 5.2% from 35.4 million tonnes in 2023.
But despite that slight rebound, steel production in Germany remained lower, and has been below 40 million tonnes for three years in a row, German steel federation WV Stahl said.
Earlier this week, Dutch steelmaker Tata Steel Nederlands (TSN) added to the problems in the European steel sector when it announced plans to undergo a large-scale transformation that will lead to the loss of about 1,600 jobs at its IJmuiden facility.
In March this year, the European Commission presented a Steel and Metals Action Plan to support the struggling industry, but it remained to be seen how the plan will be implemented and what results it will bring.
So far, the European Commission has focuses on tightening trade policies to protect the local market from unfair imports.
On April 1, the Commission introduced new, tighter, steel safeguard measures to support the domestic steel sector.
And from April 7, the EU has imposed anti-dumping duties on imports of hot-rolled coil from Egypt, Vietnam and Japan.
Europe’s steel sector was still at the heart of several regional economies, with approximately 500 production sites across 22 EU member states, the Commission said. According to EU data, the European steel sector contributes around €80 billion to the bloc’s gross domestic product and supports more than 2.5 million jobs.
Germany plans to decarbonize one-third of domestic steel capacity by 2030
During Germany’s National Steel Summit held in Duisburg, politicians and industrial associations have spoken in favor of the preservation and green transition of the domestic steel industry and have listed the needs of the sector, according to media reports.
Robert Habeck, German federal minister for economic affairs and climate action, stated that Germany and the EU are spearheading the decarbonization of the steel industry. “In Germany, we will convert around one-third of German crude steel capacity by 2030 and, in doing so, produce around 12 million mt of carbon-free steel,” Mr. Habeck added.
As stated in local German media reports on the summit, steel production is the foundation of many sectors such as automotive and mechanical engineering and their transformation, though it is very energy-intensive and accounts for seven percent of Germany’s total greenhouse gas emissions. New technologies and the use of renewable or green energies such as hydrogen are needed.
The German government has been allocating billions of euros for large-scale renewable energy plants, but the domestic steel industry is facing the risk of a weak economy and high energy prices, and cheap imports mainly from Asia. Therefore, IG Metall, one of the largest metalworkers’ unions in Germany, has urged politicians to create a reliable investment environment and to ensure competitive prices for electricity.
Gunnar Groebler, president of the German Steel Federation, stated that Germany needs to establish green markets, to keep energy prices in check and to create effective protection against unfair competition in order to support the industry, which is under pressure.
Additionally, other unions pointed out that a competitive domestic steel industry is essential for industrial value chains, prosperity, employment and a green transformation in Germany and Europe.
