Electric-arc plant will supply automakers across the South
Hyundai-POSCO Louisiana LLC, a joint venture between Hyundai Motor Group and POSCO Group, plans to hold a groundbreaking ceremony Sept. 4 for its $5.8 billion electric arc furnace steel mill reportedly to be sited in Donaldsonville, Louisiana, according to industry sources who spoke to the Korean news outlet Asia Today. The company recently sent invitations to key local participants to confirm attendance at the ceremony, the sources said Tuesday.
The plant represents Hyundai Steel’s first North American steel facility. It is designed to produce 2.7 million metric tons of low-carbon automotive steel sheets annually, supplying Hyundai Motor Group’s expanding U.S. manufacturing network, which includes the Hyundai Motor Group Metaplant America in Georgia, Hyundai Motor’s plant in Alabama, and Kia’s factory in Georgia.
Hyundai Motor Group announced plans for the Louisiana mill last year as part of a broader effort to build a more stable, tariff-resistant steel supply chain for its U.S. auto operations. The project is structured as a joint venture with POSCO Group, South Korea’s other major steelmaker. Hyundai Motor Group will hold 80% of Hyundai-POSCO Louisiana LLC, and POSCO Group will hold 20%, according to the sources. Within Hyundai Motor Group’s share, Hyundai Steel will hold a 50% stake, while Hyundai Motor and Kia will each hold 15%.
The investment requires approvals from state and local regulators, according to a report from NOLA.com.