Kosice metallurgical plants (Kosice metallurgical plants) are expecting perhaps the most extensive changes in decades. After control of the enterprise finally passed to the Japanese giant, the plant is preparing for a complete environmental transformation. The government signed key financing agreements with management that are meant to guarantee regional stability and preserve thousands of jobs.
Million investments in green metallurgy
The new owner, the Japanese corporation Nippon Steel, plans to invest about 550 million euros of its own funds in modernizing the Kosice enterprise (Kosice enterprise). Nearly 350 million euros more will come as grants from the European Modernizačný fond (Modernization Fund of the EU), which is replenished by selling environmental quotas.
The total value of the large investment package reaches about 900 million euros. A key part of the project will be building a modern electric arc furnace, which will gradually replace outdated classic blast furnaces. In addition, funds will be directed to new equipment for producing technical gases and improving overall energy efficiency.
Why switching to electricity is important for workers and the economy
The plant U. S. Steel Košice remains perhaps the most important employer in the east of the country, where thousands of people work in direct and related productions. The Ministry of Environment emphasizes that without this financial help and the involvement of a strategic investor, the plant’s future would be at risk.
- Preserving the workforce. According to agreements between the government and top management, the new owner guarantees the preservation of jobs for more than eight thousand employees of the enterprise and related contractors.
- Reducing emissions. The new technology will allow cutting carbon dioxide emissions by more than half immediately after its full launch.
- Lower costs for quotas. Thanks to greener production, the plant will significantly reduce costs for purchasing mandatory environmental permits, increasing its competitiveness in the European market.
When to expect the launch of new capacities
The change of official course and the transfer of the enterprise under Japanese management is happening gradually. Construction and installation work on the site is planned for the next several years.
According to official plans, full operation of the new electric arc furnace should begin in 2030. Until then, the enterprise will operate in a mixed mode, combining classic technologies with new environmental standards to fully adapt to the requirements of the European steel market.
