Metals & mining (AO) | HKM transfer to Salzgitter finalized

Research evidence excerpt

Metals & mining (AO) | HKM transfer to Salzgitter finalized

to receive approximately EUR500m in restructuring contributions from thyssenkrupp and Vallourec

No financial details have been disclosed at this stage. We will likely have to wait until the company's mid-August results

presentation for greater visibility on the restructuring costs and financing.

We continue to expect thyssenkrupp to contribute approximately EUR350m to the delegated restructuring. In our view, Vallourec

should contribute around EUR150m, implying total funding of roughly EUR500m available to Salzgitter for the restructuring.

The remaining question concerns the level of public funding that may be secured for the EAF investment over the coming years.

We believe this could amount to around 50% of the gross investment, broadly in line with the public support granted for SALCOS

Stage 1.

Salzgitter secures the EU slabs supply, thyssenkrupp proceeds with its steel restructuring plan

Through this acquisition, Salzgitter secures the long-term supply of steel slabs for its steel processing activities, including tubular

products and heavy plate, while positioning itself as a domestic slab supplier at a time when Russian slab imports (currently

around 3–4Mt) are expected to decline further.

For thyssenkrupp, the transaction represents another step forward in the restructuring of its Steel Europe division, which targets

a 2.5Mt reduction in production capacity and a workforce reduction of approximately 11,000 employees by 2030.

As a reminder, thyssenkrupp announced in 2025 its intention to exit HKM, following the path previously taken by Vallourec several

years earlier. After failing to find a buyer for its 50% stake, thyssenkrupp had been considering closing the site before Salzgitter