Třinecké Železárny postpones key decarbonization plans

Třinecké Železárny Group, the largest steel producer in the Czech Republic, is postponing the completion date of the largest decarbonization investment in the plant’s history. The company said in a statement.

The group is postponing key changes – the construction of an electric arc furnace and infrastructure – and will complete the process no earlier than 2030 instead of the previously announced 2028. Until then, the company will be actively negotiating with the Czech government and the EU to ensure proper support for the project.

The main reasons for the delay in the implementation of the EAF are the lack of public support, uncertainty about the future direction of Europe in the rules related to the Green Deal, the current negative situation on the steel market, and unclear rules for protecting the market from imports.

“Undertaking such a large-scale investment presupposes a favorable combination of European policy developments and an improvement in the situation on the steel market. Currently, European market protection regulations are not clearly defined so that a change in steel production technology and the associated increased costs of its production make economic sense,” said Roman Heide, CEO of Třinecké Železárny.

Petr Popelář, Chairman of the Board of Directors of Moravia Steel, a shareholder of Třinecké Železárny, said that the group remains committed to decarbonizing steel production and related activities. However, the timeline and individual steps need to be adapted to objective external circumstances. He also noted the government’s efforts to negotiate at the Czech and European levels, but noted the need for further initiatives.

The company notes that decarbonization is a forced investment that will not bring any production or commercial added value to Třinecké železárny and will cost tens of billions of crowns. At the same time, government support is becoming more and more visible in regions where steel capacity is rapidly expanding, such as China, MENA, and ASEAN. Surplus steel from countries that subsidize steel producers is then exported at prices that do not reflect the true cost.

The group announced plans to invest in large-scale decarbonization of steel production with an expected total of €1 billion at the end of January this year. It was about several projects that will reduce carbon emissions in accordance with EU requirements. Třinecké Železárny has already launched a number of them, including the construction of an iron ore briquetting line worth CZK 1 billion, a combined cycle at the Energetiky Třinec power plant, and an ultra-high voltage power line.

In March 2025, the Czech government promised to support Třinecké Železárny’s efforts to switch to an environmentally friendly production method, which will help increase its competitiveness. The company plans to reduce emissions by 55% by 2030.