Hyundai Steel has broken ground on the construction of a U.S. automotive steel sheet mill.
In this regard, Chung Eui-sun, Chairman of Hyundai Motor Group, attended the groundbreaking ceremony for 'Hyundai Steel-POSCO Louisiana Steel (HYUNDAI-POSCO Louisiana Steel·HPLS)' held in Donaldsonville, Louisiana, on the 4th (local time), stating, "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 steel sheet mill in the United States. It plans to establish an integrated production system covering everything from raw material production to molten steel manufacturing, continuous casting, hot rolling, and cold rolling at a single location. The core of the project lies in using electric arc furnaces to reduce carbon emissions compared to blast furnaces while producing high-value-added products such as automotive steel sheets. Construction is scheduled to begin in the fourth quarter of this year, with production expected to start in Yangsan from 2029 onward.
This marks the transition of Jeong (Chairman)'s Louisiana electric arc furnace steel mill construction plan, announced at the White House last March, into full-scale implementation. Earlier this year, Hyundai Steel established a dedicated 'North American Steel Business Division' in May to manage the U.S. project, followed by the creation of its local subsidiary, Hyundai Steel Louisiana LLC, in June. 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 Representative Troy Carter, and Republican 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, POSCO Group Chairman Jang In-hwa, and POSCO President Lee Hee-geun attended. Representatives from Hyundai Motor Group also participated, including Jeong (Chairman), along with Lee Bo-ryong of Hyeon Dae-je-cheol (President), Jose Munoz of 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 is a strategic base supporting Hyundai Steel's full-scale global expansion," adding, "As a forward 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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