Jindal Steel International, part of the global Jindal Group, is to acquire a 100% stake in Vítkovice Steel. The transaction is still subject to the approval of the Office for the Protection of Competition.

Vítkovice Steel has been owned by five multinational investment funds controlled by persons from Armenia. This ownership relationship has brought complications for the company: due to suspected links to Russia, which the company has repeatedly denied, in May 2022 the Financial Analysis Office (FAU) froze its assets as part of sanctions against Russia related to the war in Ukraine. The FAO only lifted its measure in August this year when the suspicions were not confirmed.

Vítkovice Steel is a traditional European producer of rolled steel products, with 70% of its production going to foreign markets. In 2022, the company widened its loss by CZK 396.8 million compared to 2021 to a total of CZK 505.1 million, although its sales rose by CZK 2 billion year-on-year to CZK 14.92 billion. The company employs more than 800 people. This is the first European acquisition for Jindal Group, which is a dominant player in the steel, energy and mining industries. The Group plans to invest up to EUR 150 million in Ostrava over the next few years, particularly in expanding its capacity to produce rolled sheets and higher value-added products.

The Jindal Group, based in India, produces 12.6 million tonnes of steel and 7,000 megawatts of electricity annually. It has a fully integrated supply chain, including iron ore mining and metallurgical coal, and employs more than 50,000 people worldwide.