Jindal Steel International, the international steel arm of the Naveen Jindal Group, said in a statement on Tuesday that it will enter into discussions with the troubled steelmaking arm of Thyssenkrupp and has submitted a non-binding offer for the company.

However, Jindal Steel International stopped shy of revealing its offer price. It has, however, expressed optimism for a constructive dialogue with Thyssenkrupp and its employee representatives.

Concurrently, Thyssenkrupp said that its executive board will “examine the offer closely, particularly about economic sustainability, the continuation of the green transformation, and employment at our steel locations.”

“We believe in the future of green steel production in Germany and Europe”, said Narendra Misra, Director of European Operations of Jindal. “Our goal is to preserve and grow Thyssenkrupp’s 200-year industrial legacy and help transform it into Europe’s largest integrated low-emission steelmaker”.

It has presented a “forward-looking concept” to Thyssenkrupp, which could potentially make decarbonisation more affordable. The plan would secure steel production in Germany and create new business opportunities. Among other things, the proposal includes completing the DRI project in Duisburg and establishing additional electric arc furnace capacity, with a financial commitment exceeding €2 billion, the statement added.

“Our commitment is clear: with our investment capacity and global network, Thyssenkrupp Steel would have a strong and competitive future in Europe, participating in global growth and corporate synergies, while supporting key downstream industries such as automotive”, said Narendra Misra.

If acquired, Thyssenkrupp stands to benefit from the hydrogen-ready DRI plant in Oman, which Jindal is currently building at a cost of around €2 billion and which is scheduled to start operations in 2027. This plant will provide additional supply security for Thyssenkrupp Steel’s capacity and accelerate the shift from traditional coal-based to low-carbon production technologies.

It also intends to supply high-quality iron ore from mines located in Cameroon, not only for its DRI plant in Oman, but for the under-construction DRI facility in Duisburg as well. “This would integrate Thyssenkrupp Steel into a fully integrated supply chain from mining to metal processing and ensure its competitiveness across all economic cycles,” it added.

Additionally, Jindal Steel aims to invest in an additional new electric arc furnace capacity in Germany, supplementing the under-construction DRI facility. “This would increase Thyssenkrupp Steel’s low-emission steel production in Germany significantly. Following the transformation, Thyssenkrupp Steel would become the largest low-emission steel producer in Europe.”

A 2017 attempt to combine Thyssenkrupp’s steel business with the European arm of Tata Steel was blocked by Europe’s antitrust regulator two years later. Since then, Thyssenkrupp has reportedly implemented a programme to prune costs, which involves handing pink slips to thousands of employees and reducing wages for those workers who survived downsizing.