Hyundai Steel and POSCO Break Ground on Louisiana Mill Capable of Producing 2.7 Million Tons

Hyundai Steel and POSCO have broken ground on a $5.8 billion steel mill in Louisiana that will produce 2.7 million tons a year, including lower-carbon automotive sheet steel.

The Hyundai Steel-POSCO Louisiana electric-arc-furnace mill held its groundbreaking ceremony on the 4th in Donaldsonville. The project covers 7.37 million square meters and will be the first electric-arc-furnace-based steel mill in the United States specializing in automotive sheet products.

Construction is scheduled to begin in the fourth quarter of this year, with production starting in 2029. The plant will make 1.8 million tons of automotive steel and 900,000 tons for general use, including hot-rolled, cold-rolled and galvanized products.

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It will play a major role in producing next-generation mobility for U.S. automakers.

The steel will supply Hyundai and Kia manufacturing plants in Alabama and Georgia. Hyundai Motor Group Chairman Chung Euisun said the plant would also play a major role in producing next-generation mobility products for U.S. automakers. The project forms part of a previously announced 31 trillion won investment plan in the United States, which Chung described as centered on strengthening steel and automotive supply chains in Louisiana.

Hyundai Steel will hold a 50% stake in the project, POSCO 20%, and Hyundai Motor and Kia 15% each. South Korean Trade Minister Kim Jung-kwan called the project a new form of cooperation that links South Korean steel technology and manufacturing capabilities with U.S. energy and labor resources.

The United States’ 50% tariff on foreign steel products contributed to an 8% decline in South Korean steel exports to the country last year, to 2.54 million tons. The steel industry expects the new mill to reduce trade risks created by those barriers. The groundbreaking ceremony was attended by South Korean and U.S. officials, including Louisiana Governor Jeff Landry, Hyundai Motor Group Chairman Chung, POSCO Group Chairman Chang In-hwa, Hyundai Motor President Jose Munoz, Kia President Song Ho-sung and South Korean Ambassador to the United States Kang Kyung-wha.

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This is a new form of South Korea-U.S. cooperation that connects South Korea’s steel technology and manufacturing capabilities with the strengths of U.S. energy and labor.