Local Slovak newspaper Korzar reported last week that US Steel is looking at a plan to lay off up to 15 percent of its workforce at its Slovakian steel mill in Kosice, or more than 1,500 workers. This downsizing would affect mainly white-collar workers. Korzar reports that it is likely the US group wants to focus on its domestic operations, which are currently facing stiff competition from cheaper Chinese steel.
On December 9, media reports indicated that Czech steelmaker Moravia Steel, owned by Prague-based Slovak billionaire Tomáš Chrenek, has a strong interest in acquiring US Steel's plant in Kosice, and that the two sides have already had talks. Speculation over the sale of US Steel has increased given European steelmakers' problems with low-priced Chinese products.
The US parent company had threatened to shut down the Slovak plant at the end of 2012, but at the beginning of 2013 was offered a package by the Slovak government, including lower power prices, to maintain production. The facility currently has 12,000 employees and an annual steelmaking capacity of 5 million metric tons of sheet steel. US Steel Kosice is the biggest employer in the country. The Slovak steel company reported a net profit of €17 million last year after a €369 million net loss in 2013.