Hyundai Steel and POSCO Make Equity Investment in U.S. Joint Steel Mill Construction

50% of $5.8 Billion Total Investment in Equity
Hyundai Motor Group Holds 80%, POSCO 20%

Hyundai Steel and POSCO have made equity investments for the construction of a steel mill in Louisiana, United States, aiming to begin operations in 2029.

On December 16, Hyundai Steel and POSCO each announced that they would make capital contributions for equity investment in an integrated electric arc furnace steel mill in Louisiana, United States. Previously, in March, Hyundai Motor Group announced plans to establish an electric arc furnace steel mill in Louisiana with an annual production capacity of 2.7 million tons, to manufacture steel products for supply to local U.S. operations, including Hyundai Motor Group Metaplant America (HMGMA).

Subsequently, in April, POSCO Holdings formalized its local investment by announcing its participation in the Louisiana steel mill project through equity investment.

In its disclosure on this day, Hyundai Steel explained that it has finalized a plan to invest a total of 5.8 billion dollars (approximately 8.5585 trillion won) to build an electric arc furnace steel mill with an annual capacity of 2.7 million tons. The company confirmed that the U.S. electric arc furnace steel mill will establish a specialized production system for automotive steel sheets and supply 2.7 million tons of hot-rolled, cold-rolled, and coated steel sheets annually to the U.S. market.

Hyundai Steel stated that the total investment of 5.8 billion dollars will be financed equally with 2.9 billion dollars (50%) in equity and 2.9 billion dollars (50%) in external borrowing. The equity structure will be: Hyundai Steel 50% (1.46 billion dollars), POSCO 20% (580 million dollars), Hyundai Motor 15% (440 million dollars), and Kia 15% (440 million dollars).