Hyundai Steel will begin construction of a new integrated steelworks in Louisiana this September. The $5.8 billion project is being developed jointly with POSCO and is scheduled to begin operations in 2029. The facility will produce low-carbon, high-tech automotive steel for Hyundai Motor Group’s U.S. plants and other North American vehicle manufacturers.
Hyundai Steel to Break Ground in September
Hyundai Steel, a subsidiary of Hyundai Motor and Kia, will hold a groundbreaking ceremony in early September at the site of its new integrated steelworks in RiverPlex MegaPark in Ascension Parish, Louisiana. The ceremony marks the beginning of the project’s main construction phase.
The project represents an investment of $5.8 billion and is being developed as a joint venture between Hyundai Steel and POSCO.
Plant Scheduled to Begin Operations in 2029
Annual Capacity of 2.8 Million Tonnes
The Louisiana steel plant will have an annual production capacity of 2.8 million tonnes. According to the source material, commercial operations are scheduled to begin in 2029.
The facility will manufacture low-carbon, high-tech automotive steel with high added value.
Steel Production Will Supply North American Automakers
Focus on Automotive Steel
The plant’s output will supply Hyundai Motor Group’s manufacturing plants in the United States. It will also provide automotive steel for other North American vehicle manufacturers.
The project is intended to support the production of advanced automotive steel for the regional market.
Key Equipment Suppliers Selected
Hyundai Steel and POSCO have selected several companies to provide equipment for the new steelworks.
Danieli and Tenova
Danieli and Tenova will supply the direct reduction units and steelmaking equipment.
SMS Group
SMS Group will provide the rolling mills for the facility.
Fives Group
Fives Group will supply the coil finishing lines.
Project Background
According to GMK Center, Hyundai Steel began exploring the possibility of building a U.S. steelworks using electric arc furnaces in early 2025.
The plans emerged amid expectations that U.S. President Donald Trump would tighten protectionist trade policies, including the potential imposition of tariffs on imports from Mexico and Canada.
Hyundai Motor and Kia currently manufacture vehicles at plants in Alabama and Georgia in the United States, as well as in Monterrey, Mexico.
Conclusion
Hyundai Steel and POSCO are set to begin construction of their $5.8 billion integrated steelworks in Louisiana in September. Located in RiverPlex MegaPark in Ascension Parish, the facility will have an annual production capacity of 2.8 million tonnes and is scheduled to begin operations in 2029. The plant will produce low-carbon, high-tech automotive steel for Hyundai Motor Group’s U.S. facilities and other North American automakers, with major equipment supplied by Danieli, Tenova, SMS Group, and Fives Group.
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