Nippon Steel’s Slovak Operating Base U. S. Steel Košice Decides €0.9 Billion Investment for Sustainable Growth and Decarbonization

U. S. Steel Košice, s.r.o. (“USSK”), a wholly owned subsidiary of United States Steel Corporation and Nippon Steel Corporation (“Nippon Steel”)’s operating base in Slovakia, has decided to make an investment of approximately EUR 0.9 billion in a new Electric Arc Furnace (“EAF”) and a new Air Separation Unit (“ASU”) at the Košice Steelworks (the “Investment”). On September 15, 2026 (local time), USSK signed a grant agreement with the Government of the Slovak Republic (“GoS”), enabling access to grants of up to EUR 350 million from the EU Modernization Fund.

The Investment represents a significant milestone in strengthening USSK’s sustainable, long-term competitiveness and driving growth, while advancing the transition to low-carbon steel production in Europe. USSK views decarbonization and evolving market demands as opportunities to strengthen its competitiveness and create long-term value and will continue to provide customers with a stable supply of high-quality, low-CO₂ steel products.

The EAF will have an annual production capacity of approximately 1.6 million metric tons and will be operated together with the existing blast furnace facilities to achieve optimal operations. This will enable USSK to achieve both a stable supply of high-quality steel and a significant reduction in CO₂ emissions. Production at the EAF is expected to commence in 2030. The investment in the ASU is a key enabling investment that will support the stable operation of the steelworks while improving energy efficiency and reducing CO₂ emissions. The ASU is expected to commence operations in 2029.

The grant agreement signed with the GoS provides for a total grant of up to EUR 350 million (EUR 310 million for the EAF and EUR 40 million for the ASU) for the Investment, to be disbursed through the GoS from the EU Modernization Fund. This initiative reflects the shared public and private sector goals in Europe of strengthening industrial competitiveness and advancing decarbonization.

As announced on May 13, 2026, USSK will become a direct subsidiary of Nippon Steel effective October 1, 2026, and will change its name to “Nippon Steel Slovakia s.r.o.” (“NSSK”). The Investment further underscores Nippon Steel’s long-term commitment to its operations in Europe and to the continued development of steelmaking in Slovakia.

Nippon Steel will position NSSK as its core operating hub in Europe within its global strategy and will continue to advance decarbonization initiatives while taking into account developments in the European market. Through the provision of high-quality products and services to customers and the maintenance of employment, Nippon Steel will contribute to the long-term development of the European region.

For Reference
Nippon Steel Makes Transition to Direct Ownership in U. S. Steel Košice
(Press Release dated May 13, 2026)
https://www.nipponsteel.com/en/newsroom/news/2026/__icsFiles/afieldfile/2026/05/13/20260513_150.pdf