▲ Groundbreaking for the Hyundai Steel-POSCO Louisiana Electric Arc Furnace Steel Mill
Hyundai Steel has taken its first official step toward constructing an electric arc furnace steel mill in the United States.
Hyundai Steel announced on the 4th (local time) that it held a groundbreaking ceremony for the Hyundai Steel-POSCO Louisiana Electric Arc Furnace Steel Mill (HPLS) in Donaldsonville, Ascension Parish, Louisiana.
Spanning a currently undeveloped site of 2.23 million pyeong, the facility will soon become the United States' first electric arc furnace-based automotive steel specialist mill, producing 2.7 million tons of hot-rolled, cold-rolled, and coated steel sheets annually.
Construction is scheduled to begin in the fourth quarter of this year, with commercial production targeted for 2029.
The total investment amounts to $5.8 billion (approx. 8 trillion won), with an ownership structure consisting of 50% for Hyundai Steel, 20% for POSCO, and 15% each for Hyundai Motor and Kia.
Hyundai Motor Group Executive Chair Chung Euisun said in his welcome address, "The steel produced here will play a major role in enabling Hyundai Motor Group as well as U.S. automakers to produce next-generation mobility," adding, "It will also contribute to building core industrial infrastructure ranging from AI data centers to the power generation sector, and to creating safer workplaces."
Chair Chung continued, "I am proud to carry out this project with POSCO, a valued partner," emphasizing, "We will create new opportunities and strengthen our capabilities for the future generations of both the United States and South Korea."
Louisiana Governor Jeff Landry expressed optimism in his congratulatory remarks, stating, "Hyundai Steel's investment will create quality jobs and bring new opportunities to businesses in the Louisiana region."
According to Hyundai Steel, the HPLS project is expected to generate 5,400 jobs, including 1,300 direct hires.
HPLS is part of Hyundai Motor Group's $26 billion investment in the U.S. spanning from last year through 2028.
Hyundai Steel expects HPLS to serve as a strategic foothold supporting its entry into the global market and a forward base to realize the transition to a low-carbon production system.
HPLS will establish an integrated process system in the U.S. for the first time, producing everything from direct reduced iron (DRI)—the raw material for steelmaking—to final products, reducing carbon emissions by approximately 70% compared to blast furnace production by utilizing electric arc furnaces.
The company plans to expand its supply chain using low-carbon steel products not only to Hyundai Motor and Kia, but also to global automakers in the U.S.
Situated along the Mississippi River basin, the site boasts locational advantages such as favorable land and sea transport accessibility, with the capacity to build a port capable of accommodating Panamax-class vessels of about 70,000 tons and major railway lines located nearby.
Expectations are also rising that the construction of HPLS will help mitigate trade risks amid a broader trend of strengthening protectionism from various countries, including U.S. tariffs.
A total of some 250 people attended the groundbreaking ceremony, including South Korean Minister of Trade, Industry and Energy Kim Jung-kwan, South Korean Ambassador to the U.S. Kang Kyung-wha, Governor Landry, and U.S. Under Secretary of Commerce for International Trade William Kimmitt.
From Hyundai Motor Group, attendees included Chair Chung, Presidents Sung Kim and Seo Gang-hyun, Hyundai Steel President Lee Bo-ryong, Hyundai Motor President José Muñoz, and Kia President Song Ho-sung, alongside POSCO Group Chairman Chang In-hwa and other figures.
Minister Kim Jung-kwan emphasized in his congratulatory speech, "This project goes beyond a simple steel mill construction; it is a symbol of South Korea-U.S. industrial cooperation," adding, "It is not a unilateral investment, but a partnership based on mutual cooperation that benefits Louisiana, the United States, and South Korea alike."
Ambassador Kang Kyung-wha stated, "I believe the South Korea-U.S. relationship will become even more solid through this project," expressing hope that "a sustainable, permanent partnership will be maintained."
Speaking with reporters after the event, Chairman Chang In-hwa explained the significance of the cooperation, saying, "While POSCO and Hyundai Steel are competitors domestically, when stepping onto the global stage, the purpose is to cooperate with each other to elevate the standing of our companies worldwide."
Chairman Chang continued, "For steel made using a DRI electric arc furnace to become top-tier automotive-grade steel, POSCO's hydrogen-reduction steelmaking technology and automotive steel sheet technology are required," adding, "Collaborating with Hyundai Steel in such areas can make us a company with the world's highest competitiveness."
(Photo: Yonhap News)
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