The joint venture between US Steel Group and VSŽ Košice - VSZ US Steel - will restart the first phase of a delayed project for expanding production capacity. The project was deferred from this January because of VSŽ's financial problems, said US Steel spokesman Thomas Ferrall on October 29.
After completion of the project, the production of tinned sheets used for food packaging at the JV will increase from 140,000 tons to 340,000 tons annually. The project will create almost 1,300 jobs.
Part of the costs of the expansion will be covered from the first capital investment US Steel made at the beginning of last year, while the remainder will be met from the revenues of the joint venture.
VSZ-US Steel was established in early 1998. The US partner invested 2 billion crowns.