Oman– Vitkovice Steel has agreed to purchase about 1 million tonnes per annum of low-carbon steel from Vulcan Green Steel, now under construction at Duqm SEZ.
The Indian industrial powerhouse Jindal Steel Group is currently negotiating a purchase of the significant Czech mill Vitkovice Steel. This acquisition is expected to benefit Jindal’s Vulcan Green Steel project, which is currently under construction at Duqm in Oman.
The Local media reported that the Czech company’s CEO, Radek Strouhal says that Jindal Steel has pledged to invest around 150 million euros ($164 million) in the steel mill as a part of the 100 percent stake acquisition.
“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 modernization and expansion of production technologies, sharing of foreign know-how, and moving towards environmentally produced low-emission steel,” said Strouhal.
Some of the other investments discussed were the of Vitkovice Steel, procuring about 1 million tonnes of low-carbon steel per annum from Vulcan Green Steel’s Duqm project upon its operation in 2027.
Vulcan Group a subsidiary group of Jindal Steel Group is constructing a still mill with a 5 million tonnes per annum capacity at Duqm SEZ, powered primarily by green hydrogen and other renewable energy sources with a total investment in the Duqm venture being about $3 billion.
According to reports, Jindal Group’s upcoming investment in Vitkovice Steel aims to boost the latter’s plan to plate production capacity and increase its output of higher-value products.