Chung Euisun says Louisiana plant can cover U.S. demand for 10 million tons of low-carbon steel

Hyundai Motor Group Chairman Chung Euisun said the company could locally produce enough low-carbon steel in Louisiana to cover roughly 10 million tons imported by the United States each year.

He made the remarks on Sept. 4 at the groundbreaking ceremony for the Hyundai Steel and POSCO Louisiana electric arc furnace plant in Donaldsonville, Louisiana. Chung said reducing tariffs on Korean steel was not the project’s main goal, but acknowledged that local production would benefit both sides.

The project represents Hyundai Steel’s push to gain an early position in the environmentally friendly automotive steel-sheet market in the United States, one of the world’s largest auto-producing countries. Starting in the first quarter of 2029, the company plans to supply steel sheets to Hyundai and Kia factories in the United States, as well as to local automakers.

Producing the steel locally would also eliminate the high U.S. tariff burden applied to steel imported from South Korea. The groundbreaking marks the first major result of Hyundai’s investment in the United States, according to the article’s framing.

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We will be able to cover the roughly 10 million tons of low-carbon steel that the United States imports each year through local production. Reducing tariffs was not our goal, but I think there are benefits for both sides.