Up to €150 million is planned to be invested in the modernization of the steel plant
The Czech steel company Vítkovice Steel has announced preparations for significant changes. The new owner of the enterprise in Ostrava will be Jindal Steel International, which is part of the world-famous industrial group Jindal Group. The latter specializes not only in metallurgy, but also in energy and the mining industry.
«This is a strategic step that will not only strengthen the company, but also support Czech metallurgy. The new owner will bring stabilization and development, in particular due to investments in the modernization of production technologies and the introduction of environmentally friendly steel,» comments Vítkovice Steel General Director Radek Strouhal.
Vítkovice Steel has been cooperating with Jindal Group for over a year. The group helped to stabilize the financial situation of the Czech company last year. In the spring of this year, the parties signed a memorandum on cooperation in the supply of low-carbon steel, which will allow Vítkovice Steel to receive up to 1 million tons of steel semi-finished products from Oman annually. This partnership allows the company to become one of the first producers of green steel in Europe, which will significantly increase its competitiveness.
«Steel industry in the Czech Republic has a long tradition, and Vítkovice Steel has the necessary experience, quality products and qualified employees. We see great potential in our cooperation and plan to invest in the expansion of production in Ostrava,» added Harsha Shetty, CEO of Jindal Shadeed Iron & Steel in Oman.
Jindal Group plans to invest up to €150 million in Vítkovice Steel over the next few years. The main goal is to expand the production capacity of steel sheets and products with high added value. It is also planned to create new jobs, because over the last year of cooperation, the number of employees has already increased by 100 people.
The purchase of shares became possible after the completion of the investigation of the Financial Analytical Department, which blocked the possibility of selling shares from 2022 due to suspicions of the company’s ties to the Russian Federation. However, the suspicions were not confirmed, and the investigation was completed in July 2023.
The final decision on the deal must be made by the Antimonopoly Committee.
As reported earlier, in June Vítkovice Steel announced that it had reached an agreement with Oman’s Vulcan Green Steel regarding the supply of 1 million tons of “green” slabs per year. The company has ambitions to become one of the first European producers of low-carbon rolled steel produced with minimal impact on the environment.
VÍTKOVICE STEEL, a. s. is the largest producer of rolled sheets in the Czech Republic. The company has more than 800 employees. Most of the products of the Ostrava enterprise are used in construction and mechanical engineering. 70% of production is exported abroad.
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