US Steel Košice, sco. (USSK), a wholly owned subsidiary of United States Steel Corporation and a member of Nippon Steel Group, has approved an investment of approximately €900 million in a new electric arc furnace (EAF) and a new air separation unit (ASU) at its Košice Steelworks. The company has also signed a grant agreement with the Government of the Slovak Republic supporting the investment.
The project represents a major step in the long-term development of steelmaking in Košice and is expected to strengthen the future of employment, customer supply and industrial activity in Slovakia and the wider Central and Eastern European region. Production from the new EAF is expected to begin in 2030.
The new EAF will have an annual production capacity of approximately 1.6 million metric tons. It will operate alongside the existing blast furnace facilities, enabling USSK to optimise its production operations while maintaining a stable supply of high-quality steel. The combination is also expected to deliver a significant reduction in CO₂ emissions.
The new ASU will serve as an important supporting investment for the steelworks. It is intended to contribute to stable operations while improving energy efficiency and reducing CO₂ emissions across the facility. Under the grant agreement, the Government of the Slovak Republic will provide approximately €350 million in support for the investment, comprising €310 million for the EAF and €40 million for the ASU. The funding will be disbursed through the government from the European Union Modernization Fund.
The Modernization Fund is separate from Slovakia’s state budget and is financed through revenues generated by the EU Emissions Trading System (EU ETS), including revenues from allowances paid by companies operating within the EU ETS. As the largest industrial participant in the Slovak EU ETS system, USSK has been the country’s most significant contributor to these revenues.
The investment is expected to support the continued competitiveness and resilience of Slovak industry. Steel is a key input for manufacturing, construction, automotive, energy and other strategic value chains. Modernising USSK is therefore expected to contribute to industrial capabilities, supply security and the competitiveness of Slovakia and the wider CEE region.
USSK also highlighted the importance of a strong European market for producers investing in decarbonisation technologies and high-tech manufacturing. Such investment can support skilled employment, resilient supply chains and innovative industrial products.
As announced on May 13, 2026, USSK will become a direct subsidiary of Nippon Steel effective October 1, 2026, and will be renamed NIPPON STEEL SLOVAKIA sro (NSSK). The €900 million investment further reflects Nippon Steel’s long-term commitment to its European operations and the future of steelmaking in Slovakia.
