Nippon Steel will invest approximately €900 million ($1.04 billion) in its U.S. Steel Kosice unit in Slovakia. The capital will fund a new electric arc furnace (EAF) and an air separation unit to produce high-grade, low-carbon steel.
The project is supported by a €350 million grant from the European Union’s Modernization Fund via the Slovak government. The new EAF will feature an annual production capacity of 1.6 million metric tons while operating alongside existing blast furnaces.
Operations for the air separation unit are slated to begin in 2029, with EAF production starting in 2030. This move aligns with Nippon Steel’s broader strategy to decarbonize its operations and secure the European steel supply.