VÍTKOVICE STEEL will have a new strong owner who will provide it with green steel and investment in development. The owner will be Jindal Steel International from the world-famous industrial group Jindal Group, which is active not only in the steel industry, but also in the energy and mining industries. By purchasing the shares from the current owners, the company will acquire 100 percent of the shares in the Ostrava company.
“This is a strategic step and we are convinced that it will strengthen the company and the Czech steel industry. The new industrial owner will bring the company stability and above all development in the form of massive investments in modernisation and expansion of production technologies, sharing of foreign know-how and moving towards environmentally produced low-emission steel,” said Radek Strouhal, CEO of VÍTKOVICE STEEL.
VÍTKOVICE STEEL has been cooperating with Jindal Group for more than a year in the field of operational financing after Jindal Group stabilized its financial situation last year. This spring, VÍTKOVICE STEEL and the Jindal Group entered into a binding memorandum of mutual business cooperation for the supply of input materials produced with low CO2 emissions and minimal environmental impact. The Ostrava company has thus secured low-emission steel gates from Oman in volumes of up to one million tonnes per year. Thanks to the partnership with the Jindal Group, VÍTKOVICE STEEL can become one of the first producers of so-called green sheet metal in Europe and significantly strengthen its competitiveness and market position.
“The steel industry in the Czech Republic is known for its long tradition and Vítkovice Steel has know-how, quality products, experienced employees and a good reputation as a stable supplier. These are the main prerequisites for long-term cooperation. We see great synergies between Jindal Group and Vítkovice Steel. We want to be a strategic investor and develop and expand production in Ostrava,” said Harssha Shetty, Managing Director of Jindal Shadeed Iron & Steel in Oman.
VÍTKOVICE STEEL is the first European acquisition for Jindal Group. The international group intends to invest up to EUR 150 million in the development of the company in Ostrava in the coming years, mainly in the expansion of the capacity of rolled sheets and the production of products with higher added value. Along with the investment and development of the company, new jobs are expected to be created. Already in the last year of cooperation with the Jindal Group, the number of VÍTKOVICE STEEL employees has increased by almost 100 people.
A prerequisite for the investor’s entry was the completion of the investigation by the Financial Analysis Authority, which had blocked the company’s disposal of shares since 2022 by way of a preliminary measure. As the suspected ownership link to Russia, which the company has denied all along, was not confirmed, the authority closed the investigation in July. The restriction is now over and investors can buy shares in the company.
The entry of the investor has yet to be assessed by the Antimonopoly Office.
VÍTKOVICE STEEL, a. s. is a traditional European producer of rolled steel products, the largest producer of steel plates in the Czech Republic and the only producer of sheet metal in the Czech Republic. The company employs over 800 people. Most of the products of the Ostrava company are used in the construction and engineering industries. 70 % of the products sold go abroad.
JINDAL GROUP is a global industrial group with a dominant position in the steel, energy and mining industries, with global investments of USD 25 billion. It produces 12.6 million tonnes of steel annually and 7,000 MW of electric power. It employs more than 50,000 people worldwide. It has a fully integrated supply chain, including iron ore and metallurgical coal mines. The steel arm of the group is currently undertaking a major global expansion to expand steel production from 12.6 MTPA (million tonnes per annum) to 30 MTPA by 2030, and the group is also pursuing similar growth in its power and mining verticals aimed at transitioning to low-carbon energy.
Source: VÍTKOVICE STEEL