Thyssenkrupp Steel Europe’s HKM Sale Talks Collapse with CE Capital Partners
The future of HKM, a Duisburg-based steel manufacturer with approximately 3,000 employees, has hit a snag as initial purchase negotiations with CE Capital Partners have been terminated. Thyssenkrupp Steel Europe (TKSE) expressed disappointment in a statement, emphasizing their commitment to securing a sustainable future for HKM and its workforce.
TKSE, which holds a 50% stake in HKM, along with Salzgitter (30%) and Vallourec (20%), will continue exploring options and remain receptive to potential buyers. The steel conglomerate stressed its willingness to collaborate with co-shareholders to assess the situation following the withdrawal of CE Capital Partners.
Restructuring Plans and Sale Imperative
As part of TKSE’s restructuring efforts, which aim to reduce capacity and workforce, the sale of HKM is crucial. Of the 3,000 HKM employees, approximately 1,500 are part of the Thyssenkrupp contingent. Thyssenkrupp CEO Miguel López indicated that in the absence of a successful sale, discussions with co-owners regarding an amicable closure strategy would be initiated.
Unmet Financial Demands
According to Knut Giesler, district head of IG Metall NRW, the collapse of the CE Capital Partners deal stemmed from financial constraints. The investment firm reportedly failed to present a satisfactory financial proposal. IG Metall had originally projected CE Capital Partners to invest approximately €200 million, which the firm was unwilling to commit.
Industrial Viability and Optimism
Despite the setback, IG Metall maintains optimism based on an independent study by a consulting firm that concluded HKM’s market potential is robust and manageable. The union, along with the works council and employee representatives, remain hopeful in finding a new investor, with preliminary discussions already underway.
Political Support for HKM
Sarah Philipp, Chairwoman of the Social Democratic Party (SPD) in North Rhine-Westphalia, expressed confidence in HKM’s prospects. She highlighted the company’s specialization and high-quality products, which continue to generate strong market demand. Philipp emphasized the urgency of securing clarity for the workforce and prioritizing job preservation.
CE Capital Partners’ Previous Stahl Involvement
CE Capital Partners made its mark in the steel sector in 2021 by acquiring the Friedrich Wilhelms-Hütte steel foundry in Mülheim. After successfully revitalizing the operation, the firm sold a majority stake to defense contractor Krauss-Maffei Wegmann a year later.
