Nippon Steel will transfer direct ownership of US Steel Kosice (USSK) and rename the division to Nippon Steel Slovakia on October 1. The Japanese steel company says that in this way it will be more directly involved in increasing the profitability of its European business and intends to benefit from the growth of its share in the domestic market of mills in Europe, driven by policy, Kallanish notes.
Unlike U.
S. steel, which provided special conditions upon the acquisition of Nippon last year, including the retention of its name, brand and headquarters in Pittsburgh, the 4.5 million tons/year liquid steel production capacity of Slovak Mills firmly bear the hallmarks of a Japanese steel company.
The Japanese steel manufacturer notes that Europe is a mature market with a high demand for high-quality steel, for which Nippon Steel can use its "most modern" production technologies.
In Central and Eastern Europe, USSK's main sales markets, steel demand is expected to increase in the medium and long term due to factors such as the relocation of the customer base to the eastern regions. The share of steel demand is shifting towards Eastern Europe.
"Europe is undergoing major structural transformations due to decarbonization trends and geopolitical uncertainty. It is also a market with a high level of intraregional self-sufficiency, driven by factors such as tariffs, protective measures, and the Carbon Dioxide Emissions Control Mechanism (CBAM). Therefore, Nippon Steel considers it important to take into account the growing demand as an insider," Nippon Steel said in a statement.
"Through direct ownership of USSK, Nippon Steel will make the company a key center of its European operations as part of its global strategy and will be more directly involved in increasing profitability and accelerating the growth of its European business," the statement said.
Takahiro Mori, Director of the representative office and Vice President of Nippon Steel, as well as Chairman of the Board of US Steel, says: "I would like to express my sincere respect for the 60-year history of successful operation and development of USSK, as well as the high business performance in US Steel since 2000. Going forward, Nippon Steel will continue to deploy advanced technology and management resources at USSK to strengthen the foundations of its business, as well as make medium- and long-term investments, including decarbonization initiatives. Through these efforts, we will continue to contribute to the European industry and our customers."
Dave Burritt, President and CEO of US Steel, notes that Nippon Steel adheres to "values that are closely linked to culture and opportunity.",
