Nippon Steel, Japan's largest integrated steel producer, plans to build an electric arc furnace with a capacity of 1.6 million tons per year at the U.
S. Steel plant in Kosice, Slovakia. The company stated that the project should increase the long-term competitiveness of the enterprise and support stable supplies of environmentally friendly steel to Europe.
The new electric arc furnace is expected to start operating in 2030. Nippon Steel also intends to install an air separation plant, which will ensure more stable operation of steel production, increase energy efficiency and reduce carbon dioxide emissions. The commissioning of this facility is scheduled for 2029.
The total investment is estimated at about 0.9 billion euros. This amount also includes financing under the European Modernization Fund in the amount of 3.5 million euros.
Currently, USSK's steel production capacity is about 4.5 million tons per year. The company operates two of the three blast furnaces. The actual volume of steel production in 2025 was 3.22 million tons. The main finished product of the plant remains flat rolled products.
Nippon Steel noted that it has not yet decided whether any existing blast furnaces will be shut down after the launch of the new electric arc furnace. The company stressed that the optimal production structure has yet to be determined.
A representative of Nippon Steel said that the European production base is necessary for the company as it expands its presence in regions with growing demand. In addition, the corporation expects tougher EU trade measures against imported steel, which makes localization of production even more important.
According to the company's representative, the transition to an electric arc furnace will increase the share of environmentally friendly steel in Nippon Steel production and will better meet the growing demand for low-carbon products in the region.
In May, Nippon Steel announced plans to remove USSK from the direct control of U.
S. Steel and make it a wholly owned subsidiary of the Japanese group on October 1. Starting from the same date, the company in Slovakia is planned to be renamed Nippon Steel Košice, securing for it the status of the company's key production site in Europe.