Nippon Steel plans to invest around EUR 900 million in a new 1.6 million ton/year electric arc furnace (EAF) at U. S. Steel Košice, s.r.o. (USSK) in Slovakia, with operations expected to begin in 2030.

The project is intended to improve the mill’s long-term competitiveness and increase the supply of lower-emission steel in Europe. 

An air separation unit will also be added and is scheduled to start in 2029, helping improve energy efficiency and reduce CO2 emissions. The investment includes EUR 3.5 million from the EU Modernization Fund.

USSK currently has crude steel capacity of about 4.5 million tons per year, while 2025 output reached 3.22 million tons. Nippon Steel has not yet decided whether any blast furnaces will be closed once the EAF starts operating.

The company said local production is becoming more important as EU trade measures on steel imports tighten. USSK will become a wholly owned Nippon Steel subsidiary on October 1 and will be renamed Nippon Steel Slovakia s. r. o. (NSSK).