MUSCAT : Vitkovice Steel has announced its acquisition by Indian conglomerate Jindal Steel Group. The deal, which involves a substantial investment of around 150 million euros ($164 million), is aimed at modernizing Vitkovice’s operations and enhancing production capabilities.

Radek Strouhal, CEO of Vitkovice Steel, emphasized the significance of this acquisition as its a strategic step, to strengthen the company and the Czech steel industry. The new industrial owner is anticipated to bring the company stability and, above all, development in the form of massive investments in modernization and expansion of production technologies, sharing of foreign know-how, and moving towards environmentally produced low-emission steel.

This acquisition aligns perfectly with Jindal Steel’s goals for its Vulcan Green Steel project, which is currently under construction in Duqm, Oman. Earlier this year, Vitkovice signed a binding agreement to procure approximately 1 million tonnes per annum of low-carbon steel from the Vulcan project once it becomes operational in 2027.

The Vulcan Green Steel mill, a subsidiary of Jindal Steel, is designed to have a capacity of 5 million tonnes per annum and will primarily utilize green hydrogen and renewable energy sources. With a total investment of about $3 billion, the project is poised to position Vitkovice among the leading European producers of low-carbon steel products, enabling the supply of high-quality sheets, sheet plates, and billets to the European market.

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