Hyundai Steel has announced plans to build a $5.8 billion Electric Arc Furnace (EAF)-based steel mill in Louisiana, marking a significant step to boost automotive steel production in the U.S. The new facility is expected to create over 1,300 jobs and start commercial production in 2029.
The mill will have the capacity to produce 2.7 million metric tons of steel annually, focusing on automotive steel plates. This will be Hyundai Steel’s first production base outside of South Korea and the first EAF-based mill in the U.S. to handle the entire production process, from raw materials to finished products. The move aligns with the company’s sustainability goals by reducing carbon emissions compared to traditional Blast Furnace methods.
Hyundai Steel President and CEO Seo Gang-Hyun emphasized that the new mill will help drive local economic growth and job creation. The plant will supply automotive steel plates to Hyundai and Kia’s key models, with plans to expand sales to other U.S. automakers.
The facility will be strategically located to support Hyundai Motor Company’s Montgomery, Alabama, and Kia’s West Point, Georgia, plants, as well as Hyundai’s Metaplant America in Savannah, Georgia.
Beyond the U.S. market, Hyundai Steel plans to target customers in Latin America and Europe. The company is also exploring joint investments with Hyundai Motor Group and other strategic partners to strengthen its position in the U.S.
With experience in EAF technology, Hyundai Steel previously produced automotive steel plates using this method and completed a world-first test production of high-grade, carbon-reduced steel in October 2022.
This investment is part of Hyundai Steel’s broader strategy to adopt EAF technology at its South Korean plants and integrate carbon-neutral production. Expanding into the U.S. steel market is expected to enhance Hyundai Steel’s global presence and attract new customers for its South Korean products.
The information in this article is based on a press release from Hyundai Steel Company.
Related Topics:
