Třinecké železárny plans to invest €1 billion in green transformation

The Czech steel company Třinecké Železárny has announced preparations for the largest investment project in the history of the Czech steel industry since the 1980s. As part of the European Green Deal, the company will launch an environmental modernization that will reduce carbon dioxide emissions by 55% compared to 1990. This is stated in the company’s press release.

A key part of the project will be the construction of an electric arc furnace to replace one of the two blast furnaces. Construction will start in 2026 and is scheduled to be completed in December 2028. The total investment will amount to €1 billion.

“This modernization will not increase our production capacity or the number of jobs, but it will allow us to meet new environmental standards and avoid extreme carbon costs,” said Roman Heide, CEO of Třinecké Železárny.

The company expects government support, as similar projects in other EU countries are funded by 70% through subsidies. The company has already signed a memorandum with the Czech government and expects to receive assistance in the first quarter of 2025.

In addition to financing, a successful transformation depends on the availability of carbon-free electricity and a sufficient amount of ferrous scrap, which is a key raw material for the new technology. According to experts, currently 19 million tons of European scrap is exported to third countries, which weakens the EU’s metallurgical independence.

“The successful transformation of Třinecké železárny requires the full support of the Czech government.State subsidies for similar steel decarbonisation projects in Europe have already reached almost €15 billion, with the average subsidy per project being €1 billion. Comparable support for a project in the Czech Republic would come at the right time to achieve our common goals in the area of ​​circular economy, decarbonisation and energy security,” said Axel Eggert, Director General of the European Steel Association (EUROFER).

Třinecké Železárny has already invested more than CZK 10 billion in improving the environmental performance of its production, and another CZK 40 billion has been allocated for technological development. The new project is expected to be a crucial step towards a greener future for the Czech steel industry.

As GMK Center reported earlier, Třinecké Železárny announced cooperation with ČEZ ESCO, the largest Czech supplier of green solutions for the industry, in the field of decarbonization of steel production. In the coming years, the steel plant plans to focus on decarbonizing its production processes.

Třinecké Železárny is the largest steel company in the Czech Republic. In 2023, the company produced over 2.4 million tons of steel. Its main products include wire rod, special shaped steel, rails, seamless pipes and steel billets. In total, the company employs about 6,800 people, while its parent group Moravia Steel employs 12,000 people.