Nippon Steel to invest $1.04 billion in new Slovak plant

Key facts

• Nippon Steel will invest €900 million ($1.04 billion) in a new electric arc furnace and air separation unit at its Slovak steelworks.
• The new facilities are expected to commence operations in 2029 (air separation unit) and 2030 (electric arc furnace).
• The investment aims to expand the supply of low-environmental-impact green steel in Europe.
• The Slovak government will provide €350 million in subsidies through the EU Modernization Fund.
• The Košice steelworks will be renamed Nippon Steel Slovakia (NSSK) and become a direct subsidiary of Nippon Steel.
• The new electric arc furnace will have an annual production capacity of approximately 1.6 million tons.

Nippon Steel is set to invest €900 million ($1.04 billion) in a new electric arc furnace (EAF) and air separation unit (ASU) at its U.S. Steel Košice (USSK) steelworks in Slovakia. The Japanese company acquired USSK as part of its 2025 takeover of U.S. Steel.

The investment aims to bolster Nippon Steel's global production network and expand its supply of low-carbon "green steel" in Europe, a market increasingly focused on decarbonization and facing regulatory pressures like the Carbon Border Adjustment Mechanism (CBAM).

The new EAF will have an annual production capacity of approximately 1.6 million tons and is slated to begin operations in 2030, with the ASU expected to start in 2029. This move is part of a broader industry shift towards EAFs to reduce CO2 emissions.

Of the total investment, €350 million will be funded through subsidies from the Slovak government, disbursed via the EU Modernization Fund. The Košice steelworks currently operates three blast furnaces, with one idled, and Nippon Steel may consider idling existing blast furnaces as the new EAF ramps up.

Effective October 1, 2026, USSK will become a direct subsidiary of Nippon Steel and will be renamed Nippon Steel Slovakia (NSSK). This strategic move positions NSSK as a core European operating hub for Nippon Steel's global strategy, underscoring its commitment to the region and sustainable steelmaking.