Nippon Steel to Invest €0.9 Billion in Slovak EAF and Air Separation Unit
According to company reports, Nippon Steel Corporation and its Slovak operating subsidiary U. S. Steel Košice (USSK) have decided to invest approximately €0.9 billion in a new electric arc furnace (EAF) and air separation unit (ASU) at the Košice steelworks in Slovakia.
On September 15, 2026, USSK signed a grant agreement with the Government of the Slovak Republic that provides access to up to €350 million from the European Union’s Modernization Fund. The grant includes up to €310 million for the EAF and €40 million for the ASU.
The new EAF will have annual production capacity of approximately 1.6 million metric tons and will operate alongside USSK’s existing blast furnace facilities. Nippon Steel said the combination is intended to support stable steel production while reducing carbon dioxide emissions. EAF operations are expected to begin in 2030.
The ASU is designed to support stable steelworks operations while improving energy efficiency and reducing CO₂ emissions. The unit is expected to start operations in 2029.
The investment forms part of Nippon Steel’s strategy to strengthen the long-term competitiveness of its European operations while advancing lower-carbon steel production. The company said the project will allow USSK to respond to changing market requirements while continuing to supply customers with high-quality steel products.
USSK is currently a wholly owned subsidiary of United States Steel Corporation and Nippon Steel’s operating base in Slovakia. As previously announced, USSK will become a direct subsidiary of Nippon Steel on October 1, 2026, and will be renamed Nippon Steel Slovakia s.r.o. (NSSK).
Nippon Steel plans to position NSSK as a core operating hub for its European business. The company said it will continue to pursue decarbonization initiatives while considering developments in the European steel market, with a focus on maintaining employment and supporting the long-term development of the region.
Source: Nippon Steel
SUNSHINE Spotlight: Nippon Steel plans to invest approximately €0.9 billion in a 1.6-million-tonne EAF and supporting ASU at its Slovak steelworks, with operations scheduled to begin in 2029 and 2030.
