Jindal Group intends to invest up to EUR 150 million in VÍTKOVICE STEEL, mainly in capacity expansion of rolled sheets and manufacturing of value-added products.
Jan 9, 2025
Homegrown Jindal Group has acquired 100 percent stakes in the traditional European manufacturer of rolled steel products, VÍTKOVICE STEEL, through its arm Jindal Steel International.
The Naveen Jindal-owned business house looked forward to entering the European markets with its first European acquisition, which got the approval of the Office for the Protection of Competition.
Jindal Group intended 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.
As per Vitkovice Steel, the Office for the Protection of Competition cleared the merger on the grounds that it will not result in a significant distortion of competition. The acquisition made the Ostrava-based company a member of a strong industrial group, which was fast moving towards green steel.
“This is a great event, which will strengthen the company and the Czech steel industry. The new industrial owner will bring stability and development to the company in the form of investments in 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 the Jindal Group for more than a year in the field of operational financing and this spring concluded a binding memorandum of mutual business cooperation on the supply of input material produced with low CO₂ emissions and minimal environmental impact. It has secured low-emission steel slabs from Oman in volumes of up to one million TPA.
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The partnership with the Jindal Group will make VÍTKOVICE STEEL one of the first producers of green sheet metal in Europe, significantly strengthening its competitiveness and market position.
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 several dozen.
