Hyundai Steel to Build Electric Arc Furnace Steel Plant in Louisiana, USA... "$5.8 Billion Investment"

Hyundai Steel will invest $5.8 billion (approximately 8.5127 trillion KRW) to build an electric arc furnace steel plant specialized in automotive steel sheets in the United States.

On the 25th, Hyundai Steel announced plans to establish an electric arc furnace steel plant in Louisiana, USA, aiming for commercial production by 2029. This investment in the US is part of a strategic decision to secure new growth engines through localization of automotive steel sheet supply and to transition to a mid- to long-term carbon reduction system.

The new electric arc furnace steel plant, with a total investment of $5.8 billion in the US, will be the first integrated electric arc furnace steel plant in the US with a consistent process from raw materials to finished products. Its advantage lies in reducing carbon emissions compared to blast furnaces while producing high-quality products.

Yonhap News

This integrated electric arc furnace steel plant will be specialized in automotive steel sheets and will consist of raw material production facilities producing direct reduced iron (DRP - direct reduced iron raw material facilities), electric arc furnaces, and hot and cold rolled steel sheet production facilities, with an annual production capacity of 2.7 million tons. It is located near Hyundai Motor’s Alabama plant, Kia’s Georgia plant, and the newly operating HMGMA (Hyundai Motor Group Metaplant America), enabling reduced logistics costs and a stable supply system.

Hyundai Steel plans to primarily supply steel sheets used in strategic models of Hyundai Motor, Kia, as well as US automakers, and further aims to target global automakers in Europe as well as the Latin American region including Mexico and Brazil.

To ensure stable financing and strengthen competitiveness in the US steel business, Hyundai Steel is currently negotiating joint investments with Hyundai Motor Group and is also considering equity investments with strategic partners.

A Hyundai Steel official expressed, "We will establish a global production base to secure a foundation for future growth and firmly establish the direction of a steel company capable of sustainable growth."

This content was produced with the assistance of AI translation services.