Salzgitter to acquire HKM, cut around 2,000 jobs

Salzgitter plans to fully acquire the HKM joint venture from former co-owners thyssenkrupp Steel and Vallourec, and intends to cut around 2,000 jobs. The deal and cost actions signal restructuring at the steel producer, which is likely to weigh on sentiment even as ownership consolidation could improve operational control.

Analysis

Salzgitter plans to fully acquire the HKM joint venture from former co-owners thyssenkrupp Steel and Vallourec, and intends to cut around 2,000 jobs. The deal and cost actions signal restructuring at the steel producer, which is likely to weigh on sentiment even as ownership consolidation could improve operational control.