Slovakia's largest steelmaker US Steel Košice (USSK), a subsidiary of US Steel and part of Japan-based Nippon Steel Corporation, has approved an investment of approximately €900 million in a new electric arc furnace and air separation unit at its Košice plant, according to local media reports.
New EAF to start production in 2030
The new EAF, scheduled to begin production in 2030, will have an annual capacity of approximately 1.6 million mt and will operate alongside the plant's existing blast furnaces, enabling USSK to maintain reliable supplies of high-quality steel while significantly reducing its carbon emissions.
Meanwhile, the new air separation unit will support the stable operation of the steelworks, improve energy efficiency and contribute to further reductions in carbon emissions.
USSK stated that the project will strengthen the long-term outlook for steel production and employment in Košice, secure progressively lower-emission steel supplies for customers in Central and Eastern Europe and reinforce the company's role in the decarbonisation of Slovak industry.
Modernisation Fund to provide €390 million
USSK has signed two grant agreements with the Slovak Ministry of Environment providing approximately €350 million for the EAF and €40 million for the air separation unit. The combined €390 million support will be paid from the EU Modernisation Fund, whose resources are generated through revenues from the EU Emissions Trading System rather than Slovakia's state budget.
As previously reported by SteelOrbis, US Steel Košice will become a direct subsidiary of Nippon Steel and be renamed Nippon Steel Slovakia s.r.o. on October 1, 2026. Nippon Steel plans to develop the mill as a key production hub for its European operations.
