Salzgitter to acquire HKM, cut around 2,000 jobs
Salzgitter's Acquisition of HKM and Workforce Restructuring
Acquisition Details
July 9 (Reuters) - Salzgitter said on Thursday it will wholly acquire joint venture HKM from co-owners thyssenkrupp Steel and Vallourec and intends to cut around 2,000 jobs as part of a restructuring.
Workforce Reduction Plans
Job Cuts and Production Adjustments
The German company plans to reduce HKM's workforce to roughly 1,000 positions from around 3,000 by the end of 2028, while also cutting crude steel production to two million metric tonnes per year.
Company Statement on Job Cuts
"Without these painful job cuts, Salzgitter AG would not have been able to complete the acquisition on its own," the company said in a statement.
Executive Commentary
Chief human resources officer Birgit Dietze added that the job cuts are "a difficult but necessary step".
Changes to Supply Contract
Salzgitter said HKM's supply contract with thyssenkrupp Steel will expire at the end of 2028, rather than in 2032 as previously planned.
(Reporting by Danny Callaghan; Editing by Matt Scuffham)
