In addition to making a non-binding offer for the business, the corporation promised to back its decarbonization strategy.
The German company Thyssenkrupp AG is engaging in negotiations with Jindal Steel International, the overseas affiliate of Naveen Jindal’s Jindal Steel, to possibly buy Thyssenkrupp Steel Europe, the latter’s European steel division. In addition to submitting a non-binding offer for the business, the firm promised to back its decarbonization strategy.
According to a statement from Jindal Steel International, the assistance will be provided by building an electric arc furnace and continuing the direct reduced iron (DRI) project of Thyssenkrupp Steel Europe in Duisburg, Germany.
“Jindal has offered Thyssenkrupp Steel a visionary idea that may contribute to the affordability of decarbonization. The strategy would guarantee steel production in Germany and open up new commercial prospects. The plan calls for spending more than €2 billion to build more electric arc furnace capacity and finish the DRI project in Duisburg, among other things,” the release said.
“We have faith in Germany and Europe’s ability to produce green steel in the future. “Our objective is to assist Thyssenkrupp become Europe’s greatest integrated low emission steelmaker while also preserving and expanding its 200-year industrial heritage,” said Narendra Misra, head of European operations at Jindal.
Jindal Steel International has suggested that as part of the proposed purchase, the group’s hydrogen-ready DRI facility in Oman, which is expected to begin operations by 2027, would speed the transition to low-carbon steelmaking and secure supply for Thyssenkrupp Steel’s capacity.
In order to provide an integrated “mine-to-metal strategy” for Thyssenkrupp Steel’s operations, the company further said that, in addition to Jindal’s Oman DRI plant, its iron ore mines in Cameroon would feed to Thyssenkrupp Steel Europe’s under-construction DRI facility in Duisburg.