Hyundai Steel to Build US$5.8bn Sustainable US Mill

More foreign capital investing in the United States.  And creating jobs.  Too bad American capital is AWOL. 

S E E D E D   C O N T E N T

Hyundai Steel has unveiled plans for a US$5.8bn investment to establish a state-of-the-art Electric Arc Furnace (EAF)- based integrated steel mill in Louisiana, marking a significant expansion of its global operations. The facility will focus on producing 2.7 million metric tons of steel annually, catering primarily to the automotive industry, and is expected to generate over 1,300 new jobs in the region.

Strengthening the US automotive steel supply chain

Set to commence commercial production in 2029, the new plant will manufacture high-quality hot-rolled and cold-rolled steel plates, ensuring a stable supply of automotive steel for Hyundai Motor Kia, and other global automakers. The investment aligns with the broader industry shift towards localised production, reducing supply chain disruptions and carbon emissions associated with international steel transportation.

Hyundai Steel's expansion into the US represents a strategic move, reinforcing its presence in a market with robust steel demand. The project marks its first overseas production base, further strengthening its global competitiveness.

Pioneering Low-Carbon Steel Production

As the first EAF-based integrated steel mill in the US to oversee all stages of steel production, Hyundai Steel's facility aims to set new benchmarks for sustainable steel manufacturing.

Unlike traditional blast furnace (BF) operations, which rely on coal-intensive processes, EAF technology allows for a lower carbon footprint by utilising scrap steel and direct reduced iron (DRI).

Hyundai Steel President and CEO Seo Gang-Hyun highlighted the company's commitment to sustainability, stating, "Hyundai Steel's investment in an EAF-based integrated steel mill in the US is anticipated to stimulate local economic growth, including creating new job opportunities. We plan to supply automotive steel plates not only for Hyundai Motor and Kia's strategic models but to expand sales to US automakers in the future."

Strategic collaboration with Hyundai Motor Group

To support the development of the Louisiana plant, Hyundai Steel is collaborating with Hyundai Motor Group, ensuring a secure and competitive supply chain for automotive steel. It actively seeks equity investment opportunities with strategic partners, reinforcing its long-term vision for its US business.

The new plant's strategic location offers Hyundai Steel a competitive edge.

It is close to Hyundai Motor Company's Montgomery, Alabama, and Kia's West Point, Georgia, manufacturing plants, as well as the Hyundai Motor Group Metaplant America (HMGMA) facility in Savannah, Georgia. This positioning will enable seamless supply chain integration and timely delivery of steel components.

Advancing global recognition and future growth

Establishing the Louisiana plant forms part of Hyundai Steel's broader efforts to enhance its international presence. Securing a localised production base aims to deliver high-quality, carbon-reduced steel to a wider customer base, including Latin American and European automakers.

Following the successful operation of the US facility, Hyundai Steel plans to expand the EAF-based integrated mill model to its plants in South Korea. The transition to this carbon-neutral production system aligns with the company's vision for long-term sustainability and environmental responsibility.

Hyundai Steel's expertise in Electric Arc Furnace technology is well-established. The company has over 70 years of experience in EAF operations and produced one million metric tons of automotive steel plates using EAF technology between 2007 and 2010. In 2022, it completed the world's first test production of 1.0Gpa-grade carbon-reduced high-grade steel plate using EAF technology.

A Hyundai Steel spokesperson highlighted the company's long-term objectives: "By establishing a global production base, we aim to secure a foundation for future growth and solidify our position as a steel company capable of sustainable growth."

With this bold investment, Hyundai Steel aims to redefine the steel industry, combining cutting-edge technology, sustainability, and global expansion to support the next generation of automotive manufacturing.

Read the article "Hyundai Steel expands into US with electric arc furnace mill" to gain insight into the Hyundai Steel mill from a manufacturing perspective.