The company achieved the best financial result in the last 15 years
The Czech steel plant Vítkovice Steel restored profitability in 2023 after a long period of loss-making. The company ended the year with a profit of CZK 331 million, which is the best financial result in the last 15 years, according to a press release from the Czech Steel Association Ocelarska Unie.
This result was achieved thanks to a new financial partner, the JINDAL Group, as well as a significant increase in production.
“Last year, the company showed the best results thanks to good organization, increased demand and cooperation with JINDAL,” said Radek Strouhal, CEO of Vítkovice Steel.
In 2023, the company’s revenues from sales amounted to CZK 12 billion, and total steel production increased by 37% year-on-year. As a result, Vítkovice Steel produced 480 thousand tons of hot-rolled steel, almost returning to record production.
The industry, however, faces many challenges: high energy costs, stricter environmental regulations and increased competition from non-EU imports. Nevertheless, Vítkovice Steel has managed to maintain stable partnerships in the domestic market, and has strengthened its position in the Czech Republic, Slovakia, Poland and started supplying the Ukrainian market.
Jindal Steel International, a subsidiary of JINDAL Group, has already submitted an application for the acquisition of Vítkovice Steel and is awaiting approval from the antitrust authorities. According to the company, the new owner aims to modernize the plant on a large scale, introduce advanced technologies and produce steel with low emissions. This will ensure the company’s long-term stability and competitive advantage in the global steel market.
“We believe that the support of JINDAL Group and new investments will allow Vítkovice Steel to go through a modernization process that will open up new market prospects,” added Radek Strouhal.
Other achievements of the year include the introduction of automation and measures to improve employee safety.
In 2022, Vítkovice Steel ended the year with a loss of CZK 550 million. The company faced financial difficulties, which led to a significant drop in hot-rolled steel production at 350 thousand tons. This was due to limited resources and economic challenges. The situation was also affected by high energy costs, low market demand and logistical challenges.
VÍTKOVICE STEEL, a. s. is the largest producer of flat products in the Czech Republic. The company employs over 800 people. The majority of the company’s products are used in construction and mechanical engineering. 70% of its products are exported abroad.
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