VÍTKOVICE STEEL, a prominent European steel producer, has reported a profit after years of financial struggles. In 2023, the company achieved a profit of 331 million Czech koruna, marking its best financial performance in over 15 years. This turnaround is attributed to securing a new financial partner and boosting production, despite ongoing challenges in the steel industry.
Radek Strouhal, CEO of VÍTKOVICE STEEL, highlighted the company's success amid industry challenges. He noted that the previous year was particularly successful due to efficient production management and favorable demand. A key factor was the financial partnership with JINDAL Group, which positively impacted the company's financial health.
In 2023, VÍTKOVICE STEEL's revenue from sales of products, services, and goods reached 12 billion Czech koruna, with a net profit of 330.8 million Czech koruna. This is a significant improvement from 2022, when the company ended the year with a loss of 550 million Czech koruna. The steel industry continues to face high energy costs, stringent environmental regulations, cheap imports from non-European countries, and weakened demand.
Despite these challenges, VÍTKOVICE STEEL has maintained strong business relationships, product quality, and reliable deliveries. The change in operational financing provider enabled a substantial increase in production. In 2023, production rose by 37% compared to 2022, reaching 480,000 metric tons of hot-rolled steel products, up from 350,000 metric tons the previous year.
The JINDAL Group, a globally recognized industrial conglomerate, has strengthened its involvement in Ostrava. Upon approval by the antitrust authority, Jindal Steel International will become the owner of VÍTKOVICE STEEL. This new industrial ownership is expected to stabilize and develop the company through significant investments in modernization and expansion of production technologies, sharing international expertise, and moving towards environmentally friendly low-emission steel production.
Throughout 2023, VÍTKOVICE STEEL continued its long-term development through investments. These included building a new compressor station, automating the installation of identification tags on sheets, and renovating cranes. Investments also focused on improving employee safety, enhancing the work environment, reducing energy consumption and CO₂ emissions, optimizing raw material use, and minimizing waste generation.
VÍTKOVICE STEEL produces steel plates, sheet piles, and shaped burnouts, used in construction, engineering, and energy sectors. Key markets include EU countries. While demand in Germany has been weak, the company has succeeded in the Czech, Slovak, and Polish markets and has begun supplying to Ukraine.
