By Bernadette Hogg and Isabel Demetz
(Reuters) – German steel producer Salzgitter said on Friday it was too early to tell if its HKM joint venture with Thyssenkrupp and Vallourec would be closed, after a potential buyer dropped out in February.
Previously, German conglomerate Thyssenkrupp said HKM would have to be shuttered if no buyer is found.
“We are aware of Thyssenkrupp’s thinking. That might be one scenario, but I think it’s too early to say that is the future of HKM,” Salzgitter CEO Gunnar Groebler said in a press conference to discuss full-year results on Friday.
If HKM were to close, a solution would have to be found as to where the material it produces would come from in future, Groebler added.
Salzgitter, which holds 30% of HKM, with Thyssenkrupp holding 50% and Vallourec 20%, in February said that no solution had been found to meet the interests of all stakeholders, including the stable continued supply of input material by HKM.
(Reporting by Bernadette Hogg and Isabel Demetz; editing by Richa Naidu)
