Salzgitter to take full control of HKM, cut 2,000 jobs

July 9 (Reuters) - German steelmaker Salzgitter said on Thursday it will wholly acquire joint venture HKM from co-owners thyssenkrupp's steel segment and Vallourec and intends to cut around 2,000 jobs as part of a restructuring.

The company plans to reduce HKM's workforce to roughly 1,000 positions from around 3,000 by the end of 2028, while also cutting crude steel production to two million metric tons per year.

"Without these painful job cuts, Salzgitter AG would not have been able to complete the acquisition on its own," the company said in a statement.

HKM's supply contract with thyssenkrupp Steel will expire at the end of 2028, rather than in 2032 as previously planned.

Salzgitter also plans to invest in an electric arc furnace at HKM's site in Duisburg with the aim of reducing CO2 emissions from steel production by 90% over the long term.

"We aim to guide toward a sustainable future through a consistent focus on the green transition," chief executive Gunnar Groebler said.

(Reporting by Danny Callaghan; Editing by Matt Scuffham)