Hyundai Steel has broken ground on the construction of a steel mill for automotive sheet metal in the United States.
In connection with this, Chung Eui-sun, Chairman of Hyundai Motor Group, attended the groundbreaking ceremony for 'Hyundai Steel-POSCO Louisiana Steel (HYUNDAI-POSCO Louisiana Steel·HPLS)' held on the 4th (local time) in Donaldsonville, Louisiana. He stated, "Steel produced here will play a significant role not only for Hyundai Motor Group but also for U.S. automotive companies in producing next-generation mobility (transportation)." He further emphasized, "The HPLS electric arc furnace steel mill marks the starting point for the steel industry to move toward a more resource-circular and sustainable future," adding, "This proves that innovation and sustainability can coexist right here in Louisiana."
HPLS, with a total investment of $5.8 billion (approximately 8 trillion won), is the first electric arc furnace-based automotive sheet steel mill in the United States. It plans to establish an integrated production system covering everything from raw material production and molten iron manufacturing to continuous casting, hot rolling, and cold rolling at a single location. The core objective is to reduce carbon emissions compared to blast furnaces by utilizing electric arc furnaces while producing high-value-added products such as automotive sheet steel. Construction is scheduled to begin in the fourth quarter of this year, with operations set to commence in Yangsan starting in 2029.
This marks the transition of Jeong (Chairman)'s plan announced at the White House last March for constructing an electric arc furnace steel mill in Louisiana into full-scale implementation. Hyundai Steel established a dedicated 'North American Steel Business Division' for the U.S. project in May of the same year, followed by the establishment of its local subsidiary, Hyundai Steel Louisiana LLC, in June to oversee the construction of the steel mill. Since then, major investors including Hyundai Motor, Kia, and POSCO have contributed capital stakes in January this year, accelerating the project's progress.
The groundbreaking ceremony was attended by approximately 250 key figures from government and industry sectors in both the United States and South Korea. On the U.S. side, Louisiana Governor Jeff Landry, Under Secretary of Commerce William Kimmett, Democratic Party Representative Troy Carter, and Republican Party Representative Julia Letlow were present.
From South Korea, Minister of Trade, Industry and Energy Kim Jeong-gwan, Ambassador to the United States Kang Kyung-wha, Consul General in Houston Lee Gyeong-eun, and POSCO Group Chairman Jang In-hwa attended. Representatives from Hyundai Motor Group included Jeong (Chairman), along with Lee Bo-ryong Hyeon Dae-je-cheol (President), Jose Munoz Hyeon Dae-cha (President), Kia President Song Ho-seong, Hyundai Motor Group President Sung Kim, and Seo Gang-hyeon (President).
A Hyundai Steel official stated, "The HPLS electric arc furnace steel mill serves as a strategic base supporting Hyundai Steel's full-scale global expansion," adding, "As an advanced base for realizing the transition to a carbon-reduced production system, it will contribute not only to the steel industry but also to the development of mobility industries in both South Korea and the United States."
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