Hyundai Steel Announces $5.8 Billion Electric Arc Furnace-based Integrated Steel Mill in the U.S., Driving Sustainable U.S. Steel Production and Creating over 1,300 Jobs

Rhea-AI Summary

Hyundai Steel has announced a $5.8 billion investment to build its first overseas production base - an Electric Arc Furnace (EAF)-based integrated steel mill in Louisiana, USA. The facility will produce 2.7 million metric tons of steel annually, with commercial production set to begin in 2029.

The state-of-the-art mill will create over 1,300 jobs and focus on producing automotive steel plates. It will be strategically located near Hyundai Motor and Kia manufacturing plants in Alabama and Georgia. The facility will be the first EAF-based integrated steel mill in the US to integrate all production stages from raw materials to finished products.

The company is pursuing joint investment initiatives with Hyundai Motor Group and evaluating equity investment opportunities with strategic partners. The mill will incorporate Direct Reduced Iron (DRI) technology and capabilities for hot-rolled and cold-rolled steel plates, while reducing carbon emissions compared to conventional Blast Furnace operations.

Positive

• $5.8 billion investment establishes first overseas production facility
• 2.7 million metric tons annual production capacity
• Strategic location near major automotive plants reduces logistics costs
• Creation of 1,300+ new jobs
• Lower carbon emissions compared to traditional blast furnace operations
• Potential expansion to US automakers beyond Hyundai/Kia

Negative

• Long timeline to commercial production (2029)
• High capital expenditure requiring additional investment partners
• Dependent on successful joint investment with Hyundai Motor Group

• Hyundai Steel to produce 2.7 million metric tons of steel annually at new Electric Arc Furnace (EAF)-based integrated steel mill in Louisiana, U.S.
• Significant investment to drive automotive steel manufacturing and reduce supply chain carbon emissions in the U.S.
• Commercial production of automotive steel plates targeted for 2029, ensuring stable, high-quality steel supply for global automakers, including Hyundai Motor and Kia
• Hyundai Steel builds its first overseas production base... Expansion into the U.S., where steel demand is robust, provides new growth engine

WASHINGTON and SEOUL, South Korea, March 24, 2025 /PRNewswire/ -- Hyundai Steel Company has announced a significant investment of $5.8 billion to establish a new, state-of-the-art EAF-based integrated steel mill in Louisiana.

Hyundai Steel's Louisiana mill will focus on the production of steel plates for the automotive industry, driving growth in U.S. manufacturing capabilities and creating over 1,300 jobs in the state, while reinforcing Hyundai Steel's commitment to sustainable steel production.

The EAF-based integrated steel mill will provide an annual steel production capacity of 2.7 million metric tons, with commercial production targeted to begin in 2029. The new mill will also incorporate advanced technologies for producing Direct Reduced Iron (DRI), alongside capabilities for hot-rolled and cold-rolled steel plates.

As the first EAF-based integrated steel mill in the United States to integrate all stages of steel production, from raw materials to finished products, Hyundai Steel's new plant will produce high-grade automotive steel while reducing carbon emissions compared with conventional Blast Furnace (BF) operations.

Hyundai Steel is actively pursuing a joint investment initiative with Hyundai Motor Group to ensure stable capital deployment and reinforce the competitiveness of its U.S. business. In parallel, the company is evaluating equity investment opportunities with strategic partners.

"Hyundai Steel's investment in an EAF-based integrated steel mill in the U.S. is anticipated to stimulate local economic growth, including the creation of new job opportunities. We plan to supply automotive steel plates not only for Hyundai Motor and Kia's strategic models but also to expand sales to U.S. automakers in the future," said Hyundai Steel President and CEO, Seo Gang-Hyun.

Bold strategy for sustainable growth… Global recognition through high-end products

Hyundai Steel will respond to the diverse needs of domestic and overseas customers in a timely manner by building an EAF-based integrated steel mill capable of producing high-end products, including automotive steel, in the U.S.

Through localized production, the company will ensure a stable supply of high-quality, domestically produced steel plates to global automakers across America.

The mill will be strategically located near 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 – giving it a competitive edge in supplying automotive steel.

Hyundai Steel will also target markets in Latin America and Europe. The company will collaborate with global automotive partners and investors to continuously enhance innovations in research, development and production.

Following successful operations at its Louisiana mill, Hyundai Steel will adopt the EAF-based integrated steel mill system at its plants in South Korea, moving towards the integration of a carbon-neutral production system. In addition, by leveraging its heightened global brand recognition, Hyundai Steel looks forward to securing new customers for steel products produced in South Korea.

Hyundai Steel has more than 70 years of know-how in operating EAFs and has already produced about one million metric tons of automotive steel plates using EAF technology from 2007 to 2010. In October 2022, the company successfully completed the world's first test production of 1.0Gpa-grade carbon-reduced high-grade steel plate through EAF operations.

An official from Hyundai Steel stated, "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."

www.hyundai-steel.com

 

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SOURCE Hyundai Steel Company

FAQ

What is the total investment value of Hyundai Steel's new US facility?

Hyundai Steel (HYMTF) is investing $5.8 billion in the new Electric Arc Furnace-based integrated steel mill in Louisiana.

When will Hyundai Steel's Louisiana plant begin commercial production?

The new HYMTF facility is targeted to begin commercial production in 2029.

How many jobs will Hyundai Steel's new US plant create?

The new HYMTF steel mill in Louisiana will create over 1,300 jobs.

What is the annual production capacity of Hyundai Steel's new US facility?

The HYMTF Louisiana plant will have an annual steel production capacity of 2.7 million metric tons.

How will Hyundai Steel's new US plant benefit the automotive industry?

HYMTF's plant will produce high-grade automotive steel plates for Hyundai, Kia, and potentially other US automakers, while reducing carbon emissions through EAF technology.