US Steel announced a potential investment of €1.5bn ($1.68bn) at its Kosice, Slovakia facility to be made over the next 10 years during a recent conversation with members of the Slovak parliament.
However, these investments are subject to the EU updating its framework, which is, at present, putting steelmakers in the region at a distinct disadvantage, a company spokesperson told Davis Index.
Steel mills operating in the region are already subject to higher energy prices and more stringent environmental regulations, which in turn increase the cost of production for domestic steelmakers and make imports a more viable and cost-effective option, US Steel said in its discussion with government officials.
The US Steel spokesperson added that the proposed investment will not only meet EU’s higher costs of production but will also help the company upgrade the facilities to comply with the more stringent environmental regulations being imposed by EU.
In the April competition review, the EU did not update its quotas or tariff measures to protect the domestic industry against lower-priced imports, in a period when most facilities are operating at nearly 50pc capacity utilization. This low utilization rate threatens long-term investment, growth, and sustainability.
(€1 = $1.12)