U.S. Steel Kosice (USSK) has approved an investment of approximately EUR 900 mln (USD 1.03 bln) in a new electric arc furnace (EAF) and air separation unit (ASU) at its Kosice steelworks, strengthening the plant’s long-term steelmaking operations and decarbonization efforts.
The new EAF will have annual production capacity of approximately 1.6 mln tons and is expected to start production in 2030. It will operate alongside the existing blast furnace facilities, allowing the steelworks to maintain production flexibility while reducing CO2 emissions.
The investment is supported by a grant agreement with the Government of Slovakia for approximately EUR 350 mln (USD 404 mln) from the EU Modernisation Fund. The company said the ASU will support stable steelworks operations while improving energy efficiency and reducing emissions.
USSK said the investment will strengthen its ability to supply high-quality, progressively lower-CO2 steel to customers in Central and Eastern Europe, while supporting the competitiveness and resilience of regional industrial supply chains.
The Kosice steelworks has annual crude steel production capacity of around 4.5 mln tons and is the largest steelmaker in Central and Eastern Europe. The plant includes three blast furnaces, hot- and cold-rolling facilities, annealing, tinplate and galvanizing lines, as well as a non-oriented electrical steel mill. U.S. Steel acquired the company in 2000, and USSK became part of the Nippon Steel Group following Nippon Steel’s acquisition of U.S. Steel in 2025.
From October 1, 2026, USSK will become a direct subsidiary of Nippon Steel and will be renamed Nippon Steel Slovakia s.r.o. Nippon Steel plans to position the operation as a core operating hub in Europe.
1 USD / 0.86 EUR