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.