Vítkovice Steel, a Czech-based steel company has announced that Jindal Steel International, a part of Jindal Group is in the process of acquiring 100% stake.
Vítkovice Steel has been cooperating with Jindal Group for over a year. Jindal Group helped to stabilize the financial situation of the Czech company last year, as per the company.
In the spring of this year, Vítkovice Steel and Jindal Group 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.
Vítkovice Steel is Jindal Group’s first European acquisition. Jindal Group also plans to invest up to 150 million Euros 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 investments and development of the company, the creation of new jobs is also expected. Already in the last year of cooperation with Jindal Group, the number of VÍTKOVICE STEEL employees has increased by almost 100 people,” the company said in the statement.
“It 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 stabilization and, above all, development to the company in the form of massive investments in the modernization and expansion of production technologies, sharing foreign know-how and moving towards ecologically produced low-emission steel,” said Radek Strouhal, CEO of Vitkovice Steel.
“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. For us, these are the main prerequisites for long-term cooperation. We see great synergies between the Jindal Group and Vítkovice Steel. We want to be a strategic investor and develop and expand production in Ostrava,” said Harssha Shetty, CEO of Jindal Shadeed Iron & Steel in Oman.
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.
