Spectator on facebook

Spectator on facebook

U.S. Steel to remain in Košice for at least five more years

U.S. Steel has confirmed it will not sell its plant in Košice, eastern Slovakia. Slovak Prime Minister Robert Fico and David Rintoul, the president of U.S. Steel Košice signed a memorandum on the continued presence of the US steelmaker in the east of Slovakia on March 26. Environment Minister Peter Žiga and Economy Minister Tomáš Malatinský also signed the memo in Košice, the Sme daily wrote on its website.

U.S. Steel has confirmed it will not sell its plant in Košice, eastern Slovakia. Slovak Prime Minister Robert Fico and David Rintoul, the president of U.S. Steel Košice signed a memorandum on the continued presence of the US steelmaker in the east of Slovakia on March 26. Environment Minister Peter Žiga and Economy Minister Tomáš Malatinský also signed the memo in Košice, the Sme daily wrote on its website.

“I want to thank you for this moment, which I consider to be crucial not just for the east, but for the whole of Slovakia,” Fico said, as quoted by Sme. “The contract guarantees the presence of U.S. Steel in eastern Slovakia for at least five years – and then, we will re-assess the conditions. We created conditions to motivate them to stay and produce steel here,” he added, saying that the US company pledged to maintain employment at the plant and not launch mass layoffs.

Rintoul said that the company had enjoyed good relations with the Slovak government since it bought the steelworks, the largest private employer in eastern Slovakia. These close ties culminated on March 26 with the announcement that U.S. Steel is to stay, he added. The memorandum, which is binding for both sides, is the result of talks on Monday between Fico and representatives of U.S. Steel at the firm’s headquarters in Pittsburgh.

Reports that U.S. Steel was planning to leave Košice emerged late last year. Speculation spread about the sale of the plant, which employs almost 13,000 people, to a Ukrainian or Russian oligarch. The US firm’s move was reported to have been prompted by new EU environmental rules. The exact terms of the deal have not been released, but according to the www.hnonline.sk news website, Fico promised the firm state aid and allowances; reduction of energy costs; a higher purchase price for the electric power it produces in its own on-site power station, and subsidies to reconstruct the power station’s boilers – although none of the cost is to come from the state budget, Sme quoted the website as saying.

Source: Sme

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

We want a decent Slovakia, people chanted in squares

On the eve of the Velvet Revolution anniversary, people protested in the thousands, calling for a decent Slovakia.

Bratislava protest November 16, 2018

What we didn't know about our freedom

In 1989, we thought that once the job was done, we would only go out to the squares for Sunday walks.

November 1989 in Bratislava

The courage to fight for democracy

Authoritarian societies squander the possibilities of human achievement, of lives lived to their fullest, writes the US ambassador to Slovakia.

Illustrative stock photo

While France has Beaujolais Nouveau, Slovakia has St Catherine's wines

This warm summer with an early harvest was a blessing for young wine.

St Catherine's wines