Jindal Steel International officially becomes the new owner of Vítkovice Steel

Jindal Steel International has completed the acquisition of 100% of the shares in Czech steelmaker Vítkovice Steel. This was reported by the Czech steel association Ocelarska Unie.

The Czech Antimonopoly Committee (ÚOHS) confirmed that the deal would not harm competition in the market and authorized the merger. This acquisition opens a new chapter in Vítkovice Steel’s history, as the company has become part of a powerful international group focused on green steel production.

“We are confident that this will significantly strengthen our company and the Czech steel industry. The new owner will bring stability, investments in production technologies and innovations in environmentally friendly steel production,” said Radek Strouhal, CEO of Vítkovice Steel.

Even before the deal was finalized, Jindal Steel International and Vítkovice Steel had been actively cooperating. In 2023, the companies signed a memorandum on the supply of low-carbon steel billets with minimal environmental impact. Thanks to this agreement, the Czech company receives up to 1 million tons of such raw materials annually from Oman. This will enable the company to become one of the first producers of green rolled steel in Europe.

“We see great opportunities for cooperation. Thanks to the experience of Vítkovice Steel, we plan to expand production and invest in the modernization of the enterprise,” comments Harssha Shetty, CEO of Jindal Shadeed Iron & Steel in Oman.

The Jindal Group plans to invest up to €150 million in the development of production at its Ostrava facility. The main focus will be on expanding capacity for the production of steel plates and high value-added products. New jobs are also expected to be created. During the year of cooperation, the number of employees at Vítkovice Steel increased by several dozen.

As a reminder, Vítkovice Steel restored its profitability in 2023 after a long period of loss-making operations. The company ended the year with a profit of CZK 331 million, which is the best financial result in the last 15 years. This result was achieved, among other things, thanks to a new financial partner, the Jindal Group, and a significant increase in production volumes.

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.

Jindal Group is an international industrial group with key assets in the steel, energy and mining sectors. With an annual production of 12.6 million tons of steel and investments of over $25 billion, the group is actively expanding its global capacity. Its goal is to increase steel production to 30 million tons per year by 2030, with a focus on sustainable solutions. This deal has the potential to change the landscape of the European steel industry as green steel becomes not only a trend but also a necessity for a sustainable future.