Posted on 08 Sep 2026
South Korean companies Hyundai Steel and POSCO have begun construction of a steelworks in the state of Louisiana (USA) worth $5.8 billion. This is reported by The Investor
Hyundai-POSCO Louisiana Steel (HPLS) will have an annual production capacity of 2.7 million tonnes of hot-rolled, cold-rolled and galvanised steel, including 1.8 million tonnes of automotive steel sheets and 900,000 tonnes of general-purpose steel. Mass production is due to begin in 2029.
Hyundai Steel expects the plant to generate around $4 billion in annual revenue once it reaches full production capacity,
The steel produced will be supplied to Hyundai Motor and Kia car factories in the US.
Hyundai Steel, which holds a 50% stake in the company, is carrying out the project in partnership with POSCO, which holds a 20% stake, and Hyundai Motor and Kia, which each hold a 15% stake.
Thanks to these partnerships, Hyundai Steel has already secured a substantial customer base for the plant. According to Kim Hyun-jin, CEO of HPLS, Hyundai Motor and Kia plan to purchase 400,000 tonnes of steel each from the plant annually, whilst Posco plans to purchase around 600,000 tonnes. In his view, the remaining automotive steel can be sold through existing sales and export channels.
The Chief Executive of Hyundai-POSCO Louisiana Steel also expressed confidence in finding buyers for the plant’s 900,000 tonnes of general-purpose steel, citing, in particular, strong demand in the US market, provided that a sales strategy is drawn up well in advance of the start of commercial production.
The integrated plant will combine direct reduced iron (DRI) and electric arc furnace (EAF) technologies. Hyundai Steel expects this to reduce carbon emissions by approximately 70% compared with traditional steel production in blast furnaces. The company is also considering the use of hydrogen as a fuel source in the long term, although no specific timeframe has yet been set.
It should be noted that the key suppliers of equipment for the future plant have already been selected. Danieli and Tenova will supply direct iron recovery units and steelmaking equipment; SMS Group will be responsible for the rolling mills; and Fives Group will provide the steel coil finishing lines.
Source:GMK Center
