South Korea’s Hyundai Steel has announced plans to invest $5.8 billion in building a steel plant in Louisiana, US, with an annual capacity of 2.7 million tonnes. The company, which is part of the Hyundai Motor Group, will cover half the costs of the project.
The move comes as part of the group’s $21 billion investment plan for the US, aimed at reducing its reliance on US tariffs on steel and cars. However, it remains to be seen whether this will secure exemptions for Hyundai Steel from US tariffs.
Analysts have expressed concerns about how the company would fund the construction of the factory, given its billions of dollars in debt. The project is expected to be completed between 2026 and 2029.
The investment is also subject to scrutiny over potential execution risks associated with using electric furnaces to produce automotive steel. Lee Tae-hwan, an analyst at Daishin Securities, noted that it’s unclear whether the investment will benefit Hyundai Steel in the future.
Source: https://www.reuters.com/markets/commodities/hyundai-steel-build-plant-louisiana-with-annual-output-27-million-tonnes-2025-03-25