HKM Steel Plant to Cut 1,700 Jobs by 2029 While Pushing Ahead with €1 Billion Green Transformation
Published on 07/21/2026 at 01:02 | Redaktion boerse-global.de
For years, German industry has felt the squeeze from Chinese competitors. According to the Institute of the German Economy (IW), cheap imports from China have wiped out roughly 400,000 manufacturing jobs in Germany since 2019, while the cost disadvantage for European producers versus China is estimated at 40 percent between 2020 and 2025. The latest casualty in this struggle is the historic Duisburg steelworks HĂĽttenwerke Krupp Mannesmann (HKM), where a new social plan confirmed the loss of 1,700 positions.
The agreement, negotiated by the IG Metall union, originally threatened up to 2,000 job cuts. The deal saves around 300 more posts than initially feared, leaving roughly 2,200 employees at the site. Most workers affected will see their contracts end on June 30, 2029. To accelerate the process, HKM will start looking for 500 volunteers willing to leave with a severance package from October 1, 2026. This social plan forms the centrepiece of a broader restructuring that aims to cushion the blow over several years while the inevitable reduction takes place.
Behind the shake-up stands HKM’s new owner, Salzgitter AG. The company has committed to a massive transformation of the site, including construction of Germany’s largest electric arc furnace. The price tag: roughly one billion euros, with around 200 million euros in state subsidies already secured. First production of green steel is scheduled for 2027. The takeover has already lifted Salzgitter’s outlook: the group now expects adjusted EBITDA for 2026 of between 725 and 825 million euros, up from an earlier forecast of 625 to 725 million. Annual revenue is projected at around 10 billion euros. The HKM acquisition contributes a mid-double-digit million-euro figure to that result.
HKM is not alone in its pain. Across the German economy, major employers are retrenching. Volkswagen is targeting a profit margin of 8 to 10 percent, up from just 3 percent last year. To get there, the carmaker is mulling plant closures in Hanover, Emden and Zwickau and the loss of up to 100,000 jobs. A works meeting at the end of August is expected to provide clarity. Online retailer Zalando will shut its logistics centre in Erfurt by the end of September 2026, affecting about 2,100 workers. A social plan was finalised in early July, with provisions of roughly 80 million euros set aside. One bright spot: Tesla plans to increase weekly production at its GrĂĽnheide factory to 7,500 vehicles and create 3,500 new jobs.
The German Trade Union Federation (DGB) has called for nationwide demonstrations on September 26. The protests target planned cuts to social benefits and changes to pension and tax rules.
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