Thyssenkrupp Steel moves forward with exit from HKM partnership

Thyssenkrupp Steel Europe (TKSE) is advancing plans to divest from its longstanding partnership with Hüttenwerke Krupp Mannesmann (HKM), a major steel supplier based in Duisburg. The decision, which includes a formal termination of TKSE’s supply contract with HKM, has raised serious concerns among labor representatives and workers, prompting calls for a comprehensive social agreement.

TKSE, which currently holds a 50% stake in HKM and sources approximately 2.5 million tonnes of steel annually from the plant, announced its intention to end the supply relationship by the end of 2032. The move is part of a broader restructuring effort aimed at reshaping the company’s steel operations. Prior efforts to sell its share in HKM were unsuccessful after a key potential buyer withdrew from negotiations in February.

HKM’s remaining ownership is split between Salzgitter AG (30%) and French pipe manufacturer Vallourec (20%). The facility employs around 3,000 people.

IG Metall demands social agreement

In response to the developments, German metalworkers’ union IG Metall has called on the company to enter negotiations for a social collective agreement (Sozialtarifvertrag). The union is seeking protective measures for workers in the event of layoffs or a potential closure of the plant.

“We want security in case dismissals occur,” said Karsten Kaus, managing director of IG Metall Duisburg-Dinslaken. “Even if operations continue for the time being, we must prepare for potential redundancies.”

IG Metall warns that the plant’s future is uncertain, with three scenarios under consideration: a sale to a new investor, partial continuation, or a complete shutdown. The union is urging Salzgitter AG to consider its role in a possible partial continuation of operations.

“If the plant does close, it will lead to the most expensive social agreement the German steel industry has ever seen,” Kaus said, referencing proposed compensation packages that include severance pay, early retirement options, and transfer company provisions.

Worker unrest and rising pressure

The mood among HKM employees has become increasingly tense. Hundreds of workers protested in front of Thyssenkrupp Steel’s headquarters in Duisburg last week, voicing frustration over the canceled contract and demanding clarity about their future.

At the protest, IG Metall representative Philipp Dengel emphasized the workforce’s determination to fight for protections. “Now it’s time to take action. This affects all of us. We can’t wait and hope—it’s time to show our strength,” he said.

The union’s proposed framework for a social agreement includes severance payments calculated by years of service and personal circumstances, transition support for older and younger employees, and guarantees for apprenticeships and pension benefits. Additional provisions include a “motivation bonus” for employees who remain until the end of production, and the right to move into a transfer company with continued pay and training opportunities.

Betriebsrat prepares for direct engagement

HKM’s works council is also taking steps to support employees. In the coming weeks, the council will offer consultation hours to answer staff questions about the situation and ongoing negotiations.

“Employees have the right to speak to the works council, even during working hours,” said council chairman Marco Gasse. “If production is affected as a result, so be it.”

Gasse described the contract termination as a “scandal,” adding that HKM delivers more than two million tonnes of steel to TKSE annually—about 60% of HKM’s total output. “This decision threatens not only our site but also other jobs in the region,” he said. “The closure costs would be significant and would affect all shareholders.”

Outlook remains uncertain

While a sale or continuation of HKM’s operations remains a possibility, IG Metall and the works council are preparing for all outcomes. The union has not ruled out labor actions, including strikes, should negotiations over a social agreement fail.

Industry observers note that the future of HKM could have broader implications for the steel industry in the Ruhr region, where major transformations are underway amid decarbonization efforts and competitive pressures. Stakeholders, including political representatives, are being urged to engage as talks progress.

Source: IG Metall Duisburg Dinslaken, Photo: Fotolia