Extraordinary shifts, reorganization of orders and logistics – all this is now being experienced by VÍTKOVICE STEEL in order to deliver hundreds of sheet piles as quickly as possible for the construction of a steel barrier in Hustopeče nad Bečvou. The first part of the steel wall in the vicinity of the benzene tanker accident has been completed, and the specialist company is now installing more sheet piling in the ground, which together are to encircle the most affected area for a length of nearly 700 metres.

“We are taking this as a priority and doing literally everything we can to help prevent more environmental damage after the accident. We are the only manufacturer of sheet piles in the Czech Republic, so even our employees understand that we have to help the emergency services and it’s all about time ,” said Radek Strouhal, CEO of VÍTKOVICE STEEL

The steel sheet piles have special locks on the sides that allow to create an impermeable wall that can easily hold a mass of dirt or water for several years. They also serve as flood protection. The sheet piles can be reused and are almost 100% recyclable.

The planned longer version of the wall will require more than 1,000 pieces of sheet piles 8 metres long. “The first batch of sheet piles, about 400 pieces, is already in the ground, we delivered 2 more trucks of sheet piles on Monday and now we are producing hundreds more. Currently, we have agreed to deliver 700 more pieces of sheet piles to the accident site,” added Radim Pachlopník, the company’s Chief Operating Officer. The company had to adjust production and shipping accordingly. One 8-metre long sheet pile weighs half a tonne.

The production of sheet piles has a long tradition in Ostrava, sheet piles have been produced on a heavy profile line for 100 years. The quality of this product range is known in many European countries and is guaranteed by a number of certificates. In the Czech Republic, the sheet piles produced in Vítkovice were used, for example, in the repair of the Charles Bridge in Prague, in the construction of the elephant pavilion at the Lešná Zoo or currently in the repair of the Bata Canal.

The Ministry of the Environment has described the derailment of a tanker train in Hustopeče n. B. as the largest accident of its kind in the world. The release of chemicals threatens the health of the population, the environment, the ecosystem and water resources. The work on the site is being carried out by specialised companies in cooperation with the Integrated Rescue System and the Czech Environmental Inspectorate.

VÍTKOVICE STEEL, a. s. is a traditional European producer of rolled steel products, the largest producer of steel plates in the Czech Republic and the only producer of sheet piles in the Czech Republic. The company employs almost 900 people. Most of the products of the Ostrava company are used in the construction and engineering industries. 70 % of the products sold go abroad.

Jindal Steel International officially becomes the new owner of VÍTKOVICE STEEL. The Office for the Protection of Competition has cleared their merger. Jindal Steel International acquired 100 percent of the shares of the Ostrava-based company by buying the shares from the previous owners. VÍTKOVICE STEEL thus becomes a member of a strong industrial group that is moving towards green steel.

In its decision, the Office for the Protection of Competition confirmed that the merger between Jindal Steel International and VÍTKOVICE STEEL will not result in a significant distortion of competition and therefore cleared the merger.

“This is a great event for the company and especially for the future. We are convinced that this will strengthen the company and the Czech steel industry. The new industrial owner will bring stability and, above all, 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 thus secured low-emission steel slabs from Oman in volumes of up to one million tonnes per year. Thanks to the partnership with the Jindal Group, VÍTKOVICE STEEL can become one of the first producers of green sheet metal in Europe and significantly strengthen its competitiveness and market position.

“The steel industry in the Czech Republic is known for its long tradition and Vítkovice Steel has the know-how, quality products, experienced employees and a good reputation as a stable supplier. These are the main prerequisites for long-term cooperation. We see great synergies between 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, when announcing the acquisition.

VÍTKOVICE STEEL is the first European acquisition for Jindal Group. The international group intends 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. 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.

VÍTKOVICE STEEL, a. s. is a traditional European producer of rolled steel products, the largest producer of steel plates in the Czech Republic and the only producer of sheet metal in the Czech Republic. The company employs over 800 people. Most of the products of the Ostrava company are used in the construction and engineering industries. 70 % of the products sold go abroad.

JINDAL GROUP is a global industrial group with a dominant position in the steel, energy and mining industries, whose global investments have reached USD 25 billion. It produces 12.6 million tonnes of steel per year and 7,000 MW of electricity. It employs more than 50,000 people worldwide. It has a fully integrated supply chain, including iron ore and metallurgical coal mines. The steel arm of the group is currently undertaking a major global expansion to expand steel production from 12.6 MTPA (million tonnes per annum) to 30 MTPA by 2030, and the group is also pursuing similar growth in its power and mining verticals aimed at transitioning to low-carbon energy.

After many years of losses, VÍTKOVICE STEEL has made a profit again. Although the steel industry is facing serious problems, the company reported a profit of CZK 331 million for 2023. This is the best result in more than 15 years. The main contributors to this result were the acquisition of a new financial partner and an increase in production.

“The steel industry is facing many challenges, but last year was a successful year for us and even the most successful compared to previous years. We were able to increase production thanks to good organisation of production and favourable demand, and especially thanks to the establishment of financial cooperation with the JINDAL Group. This had a very positive effect on the economy,” explained Radek Strouhal, CEO of VÍTKOVICE STEEL.

Revenues from the sale of own products, services and goods in 2023 reached CZK 12 billion and the profit after tax amounted to CZK 330.8 million, which is the highest figure in the last 15 years. The company ended 2022 with a loss of CZK 550 million.

The steel industry is plagued by high energy prices, tightening environmental regulations, cheap imports from non-European countries and weakening demand. However, VÍTKOVICE STEEL has managed to maintain its business relationships, product quality and reliability of supply, and following a change in the provider of operating financing, it has managed to significantly increase production. Last year, production increased by 37% compared to 2022, when the company faced financial difficulties. In 2022, the company produced 350,000 tonnes of hot-rolled steel products, and in 2023, the company returned to the production level of half a million tonnes per year, exactly 480,000 tonnes.

The world-famous industrial group JINDAL Group has recently strengthened its involvement in Ostrava and its company Jindal Steel International will become the owner of VÍTKOVICE STEEL, following approval by the Antimonopoly Authority. The new industrial owner will bring the company stability and, above all, development in the form of massive investments in the modernization and expansion of production technologies, sharing of foreign know-how and a move towards environmentally produced low-emission steel. “We believe that this turnaround will herald further positive developments for our company, which has historically gone through a very difficult period following the closure of its own steel production through the gradual stabilisation of the model of rolling over purchased steel slabs to the consequences of the war conflict in Ukraine,” the CEO added.

During 2023, the company continued its long-term development through investments. For example, a new compressor station was built and workstations were robotized for the installation of identification labels on sheet metal and cranes were further renovated. Investments continued to increase employee safety and improve the working environment, and investments were also directed towards reducing energy consumption and CO2 emissions, optimising the use of raw materials and minimising waste generation.

VÍTKOVICE STEEL produces steel plates, sheet metal and shaped products. They are used in the construction, engineering and energy sectors. The key markets for the company are EU countries. Recently, demand has been weak in Germany, but the company has been successful in the Czech, Slovak and Polish markets and has also started to supply Ukraine.

VÍTKOVICE STEEL, a. s. is a traditional European manufacturer of rolled steel products, the largest producer of thick steel plates and the only manufacturer of sheet piles in the Czech Republic. The company employs almost 900 people. Most of the products of the Ostrava company are used in the construction and engineering industries. 70 % of the products sold go abroad.

VÍTKOVICE STEEL will have a new strong owner who will provide it with green steel and investment in development. The owner will be Jindal Steel International from the world-famous industrial group Jindal Group, which is active not only in the steel industry, but also in the energy and mining industries. By purchasing the shares from the current owners, the company will acquire 100 percent of the shares in the Ostrava company.

“This 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 the company stability and above all development in the form of massive investments in modernisation and expansion of 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 Jindal Group for more than a year in the field of operational financing after Jindal Group stabilized its financial situation last year. This spring, VÍTKOVICE STEEL and the Jindal Group entered into a binding memorandum of mutual business cooperation for the supply of input materials produced with low CO2 emissions and minimal environmental impact. The Ostrava company has thus secured low-emission steel gates from Oman in volumes of up to one million tonnes per year. Thanks to the partnership with the Jindal Group, VÍTKOVICE STEEL can become one of the first producers of so-called green sheet metal in Europe and significantly strengthen its competitiveness and market position.

“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. These are the main prerequisites for long-term cooperation. We see great synergies between Jindal Group and Vítkovice Steel. We want to be a strategic investor and develop and expand production in Ostrava,” said Harssha Shetty, Managing Director of Jindal Shadeed Iron & Steel in Oman.

VÍTKOVICE STEEL is the first European acquisition for Jindal Group. The international group intends 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. 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 almost 100 people.

A prerequisite for the investor’s entry was the completion of the investigation by the Financial Analysis Authority, which had blocked the company’s disposal of shares since 2022 by way of a preliminary measure. As the suspected ownership link to Russia, which the company has denied all along, was not confirmed, the authority closed the investigation in July. The restriction is now over and investors can buy shares in the company.

The entry of the investor has yet to be assessed by the Antimonopoly Office.

VÍTKOVICE STEEL, a. s. is a traditional European producer of rolled steel products, the largest producer of steel plates in the Czech Republic and the only producer of sheet metal in the Czech Republic. The company employs over 800 people. Most of the products of the Ostrava company are used in the construction and engineering industries. 70 % of the products sold go abroad.

JINDAL GROUP is a global industrial group with a dominant position in the steel, energy and mining industries, with global investments of USD 25 billion. It produces 12.6 million tonnes of steel annually and 7,000 MW of electric power. It employs more than 50,000 people worldwide. It has a fully integrated supply chain, including iron ore and metallurgical coal mines. The steel arm of the group is currently undertaking a major global expansion to expand steel production from 12.6 MTPA (million tonnes per annum) to 30 MTPA by 2030, and the group is also pursuing similar growth in its power and mining verticals aimed at transitioning to low-carbon energy.

VÍTKOVICE STEEL has launched one of the largest cutting machines in the Czech Republic. This will increase the production capacity of various cut shapes, which complement the existing production of thick plates, by one-third. The company will also expand its product offerings for the construction and engineering industries. This marks the company’s largest investment in technology modernization this year.

“The new cutting machine is the largest we have ever had in our facility. Thanks to its size and modern technology, it will significantly enhance our cut shape production capabilities. The track width is 8 meters and the length is 40 meters. This allows us to produce pieces up to 20 meters long in various shapes, with different types of bevel edges, and it can handle up to 7 strips of plates at once,” said Radim Pachlopník, Chief Operating Officer of VÍTKOVICE STEEL. The new cutting machine can produce 12,000 tons of cut shapes per year, helping to increase the existing cut shape production capacity by approximately one-third.

The new cutting facility includes two Omnicut 8000 cutting machines, each operated by one worker. One portal is equipped with eight vertical stations and an automatic three-torch oxy-fuel head with oxygen and natural gas torches. The other portal is equipped with a 3D tilting plasma torch and a CNC drilling unit, which allows drilling of holes and threading. The entire process of cutting shaped cut shapes, including complex shapes, is computer-controlled. The main supplier of the equipment was the Czech company MGM, specializing in cutting machines.

“This extensive investment project, with a total value of 30 million CZK, included not only the project preparation but also the construction of foundations, installation of natural gas and electricity supplies. Roof and floor repairs in the hall were also carried out, a compressor room for new compressors was built, and a new crane crossbeam with higher load capacity was manufactured, enabling the transport of heavier and longer plates,” added Jakub Till, Investment Manager at VÍTKOVICE STEEL.

The installation of the cutting machine took place from November to April, followed by a trial operation, and the equipment is now being tested, with additional workers being trained on it. When fully operational, the machine will be operated by two cutters per shift, supplemented by a worker for cleaning the cut shapes and a crane operator. In total, 16 people will be needed for a four-shift operation.

Cut shapes are one of the three main products of VÍTKOVICE STEEL. They are used for various engineering constructions, wind turbines, bridge structures, and other purposes in engineering and construction.

VÍTKOVICE STEEL a.s. is a traditional European manufacturer of rolled steel products, the largest producer of steel plates in the Czech Republic, and the only producer of so-called sheet piles in the Czech Republic. The company employs over 800 people. The majority of the products from the Ostrava plant are used in construction and engineering, with 70% of sold products being exported.

The Ostrava-based company, VÍTKOVICE STEEL, aims to become one of the first European producers of rolled steel with minimal environmental impact. It has signed a memorandum with Vulcan Green Steel, part of the Jindal Steel group, which is constructing a large green steel plant in Oman. VÍTKOVICE STEEL may source up to one million tons of steel slabs annually from this modern plant in the coming years.

“Securing a new supplier of input material produced using the latest technology is a breakthrough strategic step that will enable us to manufacture and supply high-quality sheets, sheet piles, and cut shapes made from ecological steel to the market,” stated Radek Strouhal, CEO of VÍTKOVICE STEEL. He added, “We aim to become one of the first producers of so-called green sheets in Europe, thereby enhancing our competitiveness and market position. Through the memorandum, we have reserved one million tons annually. Although we are not yet reaching this production volume, we aim to produce around 600,000 tons this year, with the goal of reaching one million tons in the coming years.”

In the binding memorandum of cooperation, VÍTKOVICE STEEL and Vulcan Green Steel, from the renowned Indian steel group Jindal Steel & Power, agreed on mutual business collaboration. As a result, the Ostrava company will obtain steel slabs from the new factory, up to one million tons annually, in thicknesses ranging from 230 mm to 300 mm. Specific pricing and technical conditions of the supplies will be resolved through separate agreements.

The term “green steel” refers to steel produced with minimal environmental impact. Traditional production methods are replaced by modern processes that limit or completely eliminate the use of fossil fuels. In green steel production, coal is replaced by hydrogen, ideally produced using renewable sources. This method significantly reduces and minimizes CO₂ and other greenhouse gas emissions, while green steel retains the same properties as conventional steel. According to the European Union’s plans, the decarbonization of heavy industry will significantly support the fight against climate change. Steel also plays a crucial role in greening other sectors, as it is a component of many low-emission and zero-emission solutions—from rail transport to eco-friendly buildings and energy.

“Our steel complex in Duqm will have an initial capacity of five million tons of decarbonized steel annually, fully utilizing renewable energy sources, capitalizing on Oman’s vast solar and wind potential, among the largest in the world. Using green hydrogen produced from renewable energy sources will ensure a carbon footprint of less than 0.6–0.7 tons of CO₂ per ton of crude steel,” states Vulcan Green Steel on its website. The modern steel plant in Oman is expected to be completed in 2026.

VÍTKOVICE STEEL has been seeking and testing new slab suppliers long-term, essentially since closing its own steel mill in 2015, with intensified efforts over the past two years. Important factors include not only technical parameters, quality, and logistics but also the mentioned carbon footprint and environmental impact. Supplies from the Arabian Peninsula could cover the entire input material needs of VÍTKOVICE STEEL, ensuring sufficient slabs for its further development.

VÍTKOVICE STEEL, a.s., is a traditional European producer of rolled steel products, the largest producer of steel plates in the Czech Republic, and the sole manufacturer of sheet piles in the country. The company is owned by international investment funds from former Soviet Union countries. The firm employs over 800 people, with most of its products used in construction and engineering. Seventy percent of the company’s sold products are exported.

Contact: Ing. Jana Dronská, MBA
dronska.jana@seznam.cz
M: +420606728882
www.vitkovicesteel.com