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thyssenkrupp announces termination of supply contract with HKM

thyssenkrupp Steel Europe has announced its decision to terminate the supply contract with Hüttenwerke Krupp Mannesmann (HKM). As a result, Thyssenkrupp will end its obligation to purchase approximately 2.5 million tons of steel per year from HKM by December 31, 2032.

thyssenkrupp announces termination of supply contract with HKM

The company stated that this decision will not have an immediate impact on HKM's operations, and the termination of the supply contract will not affect the current functioning of HKM. Last year, thyssenkrupp Steel announced its plan to sever business ties with HKM and, within the framework of the industrial strategy presented in November 2024, began the process of separating from the joint venture. The decision to terminate the supply contract marks the official start of this process. 

The company also stated that, due to market conditions, it has decided to reduce its production capacity in the long term from the current level of 11.5 million tons to a shipment target of 8.7 to 9 million tons per year. thyssenkrupp further confirmed that, alongside the termination of the supply contract with HKM, the sale of its shares in HKM remains its preferred option, and the company is open to discussions with all serious investors.

To secure its slab supply from HKM, thyssenkrupp Steel plans to upgrade a continuous casting machine at its Duisburg-Nord site. The company noted that the necessary investment funds have been approved, ensuring the continuation of the supply chain without interruption.

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