Calcutta, March 21: The Ruias-owned Essar group is eyeing the lucrative European market, with Essar Global, a group company, bidding for a government-owned steel plant in the Czech Republic.

The Czech plant, which produces plates used in ship building and construction industries, has a capacity of one million tonne. It is located in the eastern Czech town of Ostrava.

When contacted, an Essar group spokesperson confirmed the development.

?Essar Global has put in an expression of interest (EoI) to participate in the sale process of Vitcovice Steel. The final bidders have not been shortlisted as yet. We have not made any financial commitment so far,? he added.

The development comes close on the heels of Essar?s interest in a three-million-tonne steel plant in South Korea.

If the Ruias, who own one of the country?s leading steel company Essar Steel, manage to snatch the European unit, it will immediately give the group a presence in the European market.

?The group aims to have a global presence. The development is a move in that direction,? sources said.

The Czech government has sought bids for 99 per cent of Vitcovice Steel. It is learnt that over 15 companies have put in EoIs for the unit.

Unconfirmed reports said companies like Ukraine's Industrial Union of Donbass, Czech Trinecke Zelezarny, ZPA Pecky and Trafinco, Slovakia?s Penta and Eco Invest, Charles Capital, Charlton, Russia?s Gazmetallprojekt and Evraz Holding, Doneck Steel, Arca Capital, Bancroft Private Equity, Iran's Safa Industrial Holding, Germany's Georgsmarienhuette Holding, were in the fray for the plate mill plant.

Vitkovice Steel, which has a 1,600-strong workforce, made a pre-tax profit of 1.6 billion koruna or ($71.6 million) in 2004.

The development is significant because of the fact that domestic steel companies are desperately trying to expand their operations across the globe.

Tata Steel recently snapped up the steel business of Singapore-based Nat Steel. The Essar group is also in talks with Hyundai Automotive Group in South Korea.

Essar Steel, the flagship of the group, has a capacity of 2.4 million tonnes. The company is raising the capacity to 4.5 million tonnes in the next two years at an estimated cost of Rs 2,000 crore.