Nippon Steel, Japan’s largest integrated steelmaker, plans to build a 1.6 mt/y electric-arc furnace (EAF) at U.S. Steel Košice (USSK) in Slovakia to strengthen the mill’s long-term competitiveness and support stable supply of green steel in Europe, the company said on 16 September.
The new EAF is scheduled to start operating in 2030. Nippon Steel also plans to add an air separation unit (ASU) to support stable steelworks operations, improve energy efficiency and reduce CO2 emissions, with the ASU scheduled to start operating in 2029.
Total investment will be around EUR0.9bn ($1.04bn), including EUR3.5m from the EU Modernization Fund.
USSK currently has around 4.5 mt/y of crude steel production capacity, with two of its three blast furnaces operating. Actual crude steel output was 3.22 mt in 2025. Its key finished steel products are flat steel products.
A Nippon Steel official said the company had not yet decided whether any existing blast furnaces would be halted after the new EAF starts operating. The company will consider and determine an optimised production structure, the official said.
The official said a production base in Europe was needed as Nippon Steel expands its global production footprint in regions with growing demand. The company also expects increased EU trade measures on imported steel to make local production more suitable.
EAF production will increase the share of green steel in Nippon Steel’s output and allow the company to meet growing demand for lower-emissions steel in the region, the official added.
In May, Nippon Steel announced plans to separate USSK from U.S. Steel and make it a wholly owned subsidiary of Nippon Steel, effective 1 October. The company plans to rename the mill Nippon Steel Slovakia (NSSK) from the same date, positioning it as Nippon Steel’s key operating base in Europe.
Author: Benjamin Steven
