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U. S. Steel Kosice begins construction of automotive grade hot dip galvanizing line

U. S. Steel Kosice begins construction of automotive grade hot dip galvanizing line



Kosice, June 23th, 2005 - U. S. Steel Kosice (USSK) held a ceremonial groundbreaking today for its new automotive grade hot dip galvanizing line. Prime Minister Mikulas Dzurinda attended the ceremony along with representatives of the City of Kosice, labor leaders, and U. S. Steel corporate executives. With an annual capability of 350,000 metric tons, the new facility will serve the growing demand for high quality coated sheet products in the Central European automotive and construction industries. Start-up of the $160 million facility is scheduled for early 2007.

Led by John P. Surma, U. S. Steel president and CEO, a team of corporate executives traveled to Kosice to emphasize the importance of the new galvanizing line to the company's competitive position in the Central European market. The world-class facility will provide USSK with the capability to produce critical surface quality automotive galvanized product.

"We are excited to begin construction on this facility," said Surma. "The men and women of Kosice have demonstrated that they can compete with steel producers anywhere in the world, and this automotive grade galvanizing line will give them a chance to show what they can do in the most demanding of all steel applications."

The hot dip galvanizing line, which will provide jobs for about 100 employees, is the latest in a series of market-driven capital improvements that included the expansion of Kosice's tin coating capabilities, installation of a vacuum degasser, and, most recently, the construction of a facility for producing electrical steels.

John H. Goodish, U. S. Steel's Chief Operating Officer and USSK's first president, said he was pleased with the Slovak company's progress. "When we arrived here in 2000," Goodish stated, "we focused on creating an atmosphere of mutual trust and respect, and on driving the business forward through safety, quality, customer service, environmental compliance, cost of manufacturing, and productivity. Over the last five years, USSK has become a highly respected and reliable producer. We are now ready to take on the challenge of supplying the rapidly expanding automotive market in Slovakia and Central Europe."

U. S. Steel is a major supplier of sheet steel to the North American automotive market and a leader in the development of advanced steels for the automotive industry. U. S. Steel Kosice's automotive customers will derive value-added benefit from the materials engineering, manufacturing, and research expertise of U. S. Steel's many years of producing high-quality automotive product.

This release contains forward looking statements concerning the timing of construction and the output of the contemplated facilities. Realization of these objectives can be influenced by delays in material or equipment delivery, the performance of equipment suppliers and other factors beyond the control of USSK.

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Further information:

Jan Baca
Director Public Affairs
U. S. Steel Kosice, s.r.o.
Tel.: +421 55 673 4476
Fax: +421 55 673 0330
E-mail: jbacask.uss.com

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