US Steel Košice is investing €900 million in the modernisation of its production facilities
The unit, with a capacity of 1.6 million tonnes per year, is expected to come on stream in 2030
Slovakia’s largest steel producer — US Steel Košice (USSK) — has approved a large-scale investment programme worth around €900 million. The funds will be channelled into the construction of a new electric arc furnace (EAF) and an air separation unit. This was reported by SteelOrbis.
A new electric arc furnace with a capacity of around 1.6 million tonnes per year is expected to come on stream in 2030. It will operate alongside the plant’s existing blast furnaces. This will enable USSK to maintain the reliability of its high-quality steel supplies whilst significantly reducing carbon emissions.
The newly commissioned air separation unit will ensure the plant’s stable operation, improve energy efficiency and contribute to a further reduction in its carbon footprint.
The company noted that the project will strengthen the long-term prospects for steel production and job security in Košice, provide customers in Central and Eastern Europe with low-emission products, and reinforce the company’s role in the decarbonisation of Slovak industry.
USSK has signed two grant agreements with the Slovak Ministry of the Environment: around €350 million will be allocated directly to the EAF project, and a further €40 million to the construction of an air separation unit. The total financial support of €390 million is being provided from the EU Modernisation Fund, which is financed by the EU Emissions Trading Scheme rather than the Slovak state budget.
In addition, from 1 October 2026, US Steel Košice will come under the direct control of Nippon Steel and will change its name to Nippon Steel Slovakia s.r.o. The Japanese group plans to develop the plant as a key production hub for its European operations.
As reported by GMK Center, USSK reduced its steel production by 7% year-on-year in the first half of 2026, to 1.79 million short tonnes, whilst its capacity utilisation rate fell by 5 percentage points to 72%. Steel shipments fell by 8% year-on-year – to 1.58 million short tonnes
