German steelmaker Salzgitter has indicated its intention to continue operating its joint venture steel plant, Hüttenwerke Krupp Mannesmann (HKM), in Duisburg under certain conditions, but the plant will inevitably be scaled back if other shareholders withdraw. 

HKM is currently jointly owned by thyssenkrupp Steel (50%), Salzgitter (30%), and French pipe manufacturer Vallourec (20%). Both thyssenkrupp and Vallourec have expressed their intention to withdraw.

Salzgitter stated that it could consider reducing HKM's annual capacity from approximately 4.2 million tons to 2-2.5 million tons, replacing the existing blast furnaces with electric arc furnaces, and reducing the workforce from approximately 3,000 to 1,000.

The company emphasized that the acquisition of all shares is contingent on existing shareholders sharing the restructuring and layoff costs, and thyssenkrupp providing clear procurement commitments for the next two to three years.

Furthermore, ongoing arbitration disputes between Salzgitter and thyssenkrupp, concerning potential restructuring liabilities and amounts after the withdrawal, add uncertainty to HKM's future.