Hyundai Steel, one of South Korea’s largest steelmakers, has announced a $2.9 billion capital increase to fund the construction of a new steel manufacturing facility in the United States. The investment will be made through its U.S.-based affiliate, Hyundai-POSCO Louisiana LLC, to support the development of the plant and related infrastructure.
The capital increase forms part of a larger $5.8 billion project to build the new steel plant, with the funding structure expected to include an equal mix of internal equity and external financing. Once completed, the plant is expected to have an annual production capacity of 2.7 million tonnes of steel, making it one of the largest new steel manufacturing investments in the U.S. by a foreign company.
The facility, to be located in Louisiana, will primarily supply steel to the automotive industry while also serving other industrial applications. The project aims to strengthen local supply chains, reduce reliance on imported steel, and meet the growing demand for high-quality steel products in the North American market.
The ownership structure of the venture will see Hyundai Steel USA Corp holding a 50 percent stake, POS-Louisiana Inc holding 20 percent, and Hyundai Motor America and Kia America each holding 15 percent. This arrangement reflects collaboration between Hyundai Steel and its automotive subsidiaries to ensure steady steel supply for manufacturing operations.
Construction of the plant is expected to generate significant regional economic benefits, including employment opportunities and industrial growth. The investment also aligns with Hyundai Motor Group’s broader long-term strategy to expand its manufacturing and industrial presence in the United States, encompassing steel production, automotive manufacturing, and future mobility technologies.
Hyundai Steel’s U.S. expansion highlights its commitment to localized production, enhancing supply chain resilience, and strengthening its position in the global steel market.