U. S. Steel Košice approves €900 million EAF investment in Slovakia

U. S. Steel Košice (USSK) has approved an investment of around €900 million in a new electric arc furnace (EAF) and air separation unit (ASU) at its steelworks in Košice, Slovakia.

The project will receive approximately €350 million in funding through the EU Modernisation Fund under an agreement signed with the Slovak government. Of this amount, €310 million will support the EAF and €40 million the ASU.

The new EAF will have an annual production capacity of approximately 1.6 million tonnes, with production scheduled to begin in 2030. It will operate alongside the site's existing blast furnace facilities, allowing USSK to combine conventional and electric steelmaking while reducing CO₂ emissions.

The new air separation unit will support steelworks operations and is also expected to improve energy efficiency and contribute to emissions reductions.

Nippon Steel strengthens Slovak operations

The investment comes as USSK prepares for a change in its corporate structure. The company, currently a wholly owned subsidiary of United States Steel Corporation and part of the Nippon Steel Group, is due to become a direct subsidiary of Nippon Steel on October 1, 2026. It will subsequently operate as NIPPON STEEL SLOVAKIA s. r. o. (NSSK).

Nippon Steel intends to position the Slovak business as a core European operating hub. The investment is aimed at maintaining steel production in Košice while increasing the availability of lower-CO₂ steel for customers in Central and Eastern Europe.

USSK said public support for industrial decarbonisation would also help preserve regional manufacturing capabilities and supply chains. The company stressed that investment in lower-emission steelmaking needs to be accompanied by European market conditions that allow domestic producers to remain competitive.

Source and Photo: US Steel Kosice