POSCO is reportedly considering an equity investment in the electric arc furnace steel plant that Hyundai Steel plans to build in Louisiana, USA.
According to industry sources on the 13th, POSCO is known to be reviewing various strategic options related to its investment in the Hyundai Steel plant in the US and other US investments.
Earlier, Hyundai Motor Group announced plans to establish an electric arc furnace steel plant in Louisiana, USA, aiming for commercial production by 2029. This plant will specialize in automotive steel sheets and is planned to have an annual production capacity of 2.7 million tons.
Hyundai Motor Group is considering covering half of the total investment of $5.8 billion (approximately 8.5 trillion KRW) for the plant through external borrowing. Currently, it is negotiating equity contributions with affiliates such as Hyundai Steel and other investors.
In this context, POSCO is being mentioned as a strong potential investment partner for Hyundai Steel. Since the US accounted for about 13% of South Korea's total steel exports last year, POSCO also regards the US as a strategically key market.
During the first Trump administration, an annual tariff-free export quota of 2.63 million tons was set for Korean steel, but the second administration imposed tariffs of up to 25%, making exports to the US a burden for POSCO as well.
Industry insiders believe that POSCO is highly likely to participate in Hyundai Steel's US steel plant investment to reduce the burden of high tariffs and respond to changes in steel demand within the US.
However, the POSCO Group stated regarding this matter, "We are reviewing various strategic options related to US investments, but nothing has been finalized at this point."
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