US Steel is satisfied with its Slovakian plant and considering new investments to increase the Kosice-based steelworks’ competitiveness, rather than divesting the unit, according to Slovakian Deputy Prime Minister for Investments and Informatization Richard Rasi.

“US Steel is the largest employer in Kosice and one of the largest in Slovakia and is an absolutely stable partner of this country,” Rasi said following a meeting in Pittsburgh on Wednesday with US Steel’s top leadership. “That is why we are happy with their satisfaction.”

The two sides also spoke about US steel tariffs and agreed they have little impact on US Steel Kosice as the Slovakian mill sells the vast majority of its steel elsewhere. The Kosice steelworks enjoyed one of its best years in 2017 in terms of financial and operational performance.

US Steel’s leadership did not raise any issues with Kosice's costs stemming from carbon emissions reduction, electricity and labour, while Rasi declared the Slovakian government would support key employers in the country. This is according to a notice seen by Kallanish on the website of the Slovakian Deputy Prime Minister’s Office for Investments and Informatization.

China’s Hesteel (Hegang) was widely reported in early 2017 to have signed a memorandum of understanding to buy US Steel Kosice, although neither the US steelmaker nor its Slovakian subsidiary ever confirmed this.

Talk of US Steel potentially selling its Kosice plant has persisted since 2013 when the US producer initially planned to divest its Slovakian subsidiary. Instead, it agreed then with the Slovakian government to receive annual incentives, including energy concessions, worth up to €15 million ($17.7m) for 15 years, in return for remaining Kosice’s owner.

US Steel Kosice saw shipments rise 2% on-year in the first quarter to 1.3 million net tons, following a 2% increase in full-year 2017 to 4.59mnt. Net sales rose 32% last year to $2.97 billion and Ebit increased 77% to $327m.