Signs Grant Agreement with Slovak Government for EUR 350 Million
Košice, September 15, 2026 –
U. S. Steel Košice, s.r.o. (“USSK”), a wholly owned subsidiary of United States Steel Corporation (“USSC”) and a member of Nippon Steel Group (“Nippon Steel”), has approved 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”) and today signed a grant agreement with the Government of the Slovak Republic (“GoS”).
The Investment represents a major milestone for USSK, its employees, customers and the wider Central and Eastern European region. It strengthens the long-term perspective of steelmaking and employment in Košice, supports a reliable regional customer base with high-quality and progressively lower-CO₂ steel products, and confirms USSK’s active role in the decarbonization and continued functioning of Slovak industry. Production at the new EAF furnace is expected to commence in 2030.
The new 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. The new ASU is a key enabling investment that will support the stable operation of the steelworks while improving energy efficiency and reducing CO₂ emissions.
The grant agreement signed with the GoS provides for a total grant of approximately 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. The Modernization Fund is distinct from the state budget: it is financed from revenues generated by the EU Emissions Trading System (“EU ETS”), including revenues from allowances paid by companies operating under 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.
Decarbonization support of this scale is essential not only for one company, but also for the future resilience of Slovak industry. The steel sector is deeply connected to manufacturing, construction, automotive, energy and other strategic value chains; therefore, the modernization of USSK will help preserve industrial capabilities, strengthen supply security and support the competitiveness of Slovakia and the CEE region.
At the same time, it is expected that Europe will secure its home market for domestic producers that invest in modern decarbonization technologies, manufacture high-tech products in the region and contribute to the EU’s strategic competitiveness. A strong and fair European market is necessary to ensure that green industrial investment translates into quality jobs, resilient supply chains, innovative products and a better standard of living for European citizens.
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.
In Europe, Nippon Steel will position NSSK as a core operating hub. Together with Nippon Steel, NSSK will contribute to the region’s development over the long term by providing high-quality products and services to customers.
For more information, please contact:
Ján Bača, Public Affairs Director
U. S. Steel Košice, s.r.o.
Tel.: +421 55 673 4476
E-mail: jbaca@sk.nipponsteel.com
www.usske.sk
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