United States Steel Corporation will build a new hot dip galvanizing facility at its steelmaking operation in Slovakia - US Steel Kosice (USSK).

With an annual capability of approximately 350,000 metric tons, the facility will serve the growing demand for high quality coated steels in the Central European automotive and construction industries. Construction of the $US160 million facility will begin this year, with start-up expected in early 2007.

Demand for vehicles in central Europe - especially in Czech Republic, Hungary, Poland, and Slovakia- has grown, and is expected to continue to grow. This demand, combined with the region's central location, skilled workforce and favourable cost structure, have led a number of automotive manufacturers to locate new assembly operations in this area, which are expected to require an increasing amount of high quality coated sheet steel products.

US Steel is a major supplier of sheet steel to the North American automotive market and claims to be a leader in the development of new grades and steels for the automotive industry.