Hyundai Steel announced on March 25th its plan to establish a 2.7 million-ton electric arc furnace (EAF) steel mill in Louisiana, USA, with commercial production targeted for 2029. The total investment is expected to reach $5.8 billion (approximately 8.5 trillion KRW), marking Hyundai Steel's first integrated EAF steel mill in the United States.
This investment is analyzed as a strategic move to secure new growth engines through the localization of automotive steel sheet supply and to transition to a mid-to-long-term carbon reduction system. The new steel mill will feature direct reduced iron (DRI) production facilities, electric arc furnaces, and hot and cold-rolled steel sheet production facilities, establishing an integrated production system from raw materials to finished products.
Notably, the Louisiana steel mill is located near Hyundai Motor's Alabama plant, Kia's Georgia plant, and Hyundai Motor Group Metaplant America (HMGMA), providing advantages in logistics cost reduction and stable supply chain establishment. Hyundai Steel plans to supply steel sheets for strategic models of Hyundai and Kia, as well as other US automakers, and expand its business to global markets, including Mexico, Brazil, and Europe.
Hyundai Steel is discussing joint investments with Hyundai Motor Group and considering equity investments with strategic partners to secure investment resources and strengthen the competitiveness of its US steel business.
Hyundai Motor Group Chairman Euisun Chung announced a $21 billion investment in the US by 2028 at an event held at the White House, stating that $6 billion of this will be invested in strengthening the steel and parts supply chain. This aligns with Hyundai Steel's plan to establish the Louisiana steel mill, which is expected to play a key role in Hyundai Motor Group's US market strategy.
A Hyundai Steel official stated, "We will establish a global production base to secure future growth and solidify our direction as a sustainable steel company."
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