Thyssenkrupp has crossed a major milestone in its long-running restructuring campaign, finalising the sale of its 50% stake in the Hüttenwerke Krupp Mannesmann (HKM) joint venture to Salzgitter. The closing, which followed the signing on 8 July 2026, removes a perennial drag from the group’s steel portfolio and shortens an onerous supply commitment by four years — the offtake contract between HKM and thyssenkrupp Steel will now expire in 2028 rather than 2032.
The buyer is not stopping at a simple takeover. Salzgitter is also acquiring Vallourec’s 20% interest in HKM, giving it full ownership of the Duisburg steelworks. But the new owner’s plans are radical: the workforce will shrink from roughly 3,000 to 1,000 by the end of 2028, while raw steel production will be capped at around 2 million tonnes a year. A new electric arc furnace is expected to cut CO₂ emissions by up to 90%, part of a broader push to reposition HKM as a “green steel” asset.
Marie Jaroni, CEO of thyssenkrupp Steel Europe, called the deal “an important milestone for everyone involved”, and the market responded positively. Shares climbed 2.43% on Friday to €11.60, extending their year-to-date gain to nearly 20%. The stock now trades more than 5% above its 50-day moving average of €11.00 and a generous 63% above the 52-week low of €7.10 touched in March. The relative strength index stands at 55.8, pointing to neutral-to-constructive momentum without overheating.
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Analysts are taking note. JPMorgan’s Dominic O’Kane lifted his price target on Thyssenkrupp from €11.80 to €12.80 on Friday, though he maintained a “Neutral” rating. O’Kane cited expectations of rising steel prices in the second half of 2026, buoyed by EU protectionist measures, and a more confident view on margins for the remainder of the year. He warned, however, that the current reporting season for the second quarter is unlikely to produce positive surprises.
Attention is now turning to the next big corporate event: the spin-off of the materials distribution business, TK Accelis. The supervisory board approved the separation in mid-June, and shareholders will vote on the plan at an extraordinary general meeting scheduled for 7 August 2026. Thyssenkrupp intends to retain a 51% stake in the newly independent entity.
Alongside the restructuring, the group’s defence arm is generating fresh excitement. Canada has selected Thyssenkrupp Marine Systems as the preferred supplier for its Canadian Patrol Submarine Project, a trilateral partnership announced on 6 July. A final contract has yet to be signed, but the political backing is significant. Reports of a potential order for up to 12 submarines worth around €20 billion have fuelled speculation, adding to an already solid pipeline that includes a confirmed €6.3 billion order for four MEKO A-200 DEU frigates.
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