South Korea’s Hyundai Steel said its affiliate Hyundai-POSCO Louisiana LLC plans to raise $2.9 billion in capital to invest in steel mill facilities in the US. This is stated in a regulatory filing submitted by the steelmaker, Reuters reports.
Last year, Hyundai Steel and its parent company Hyundai Motor announced investments in the construction of a steel plant in Louisiana with an annual capacity of 2.7 million tons. Hyundai Motor Group also signed a memorandum of understanding with POSCO Holdings to cooperate on this project.
Hyundai Steel plans to finance the total investment of $5.8 billion with $2.9 billion of its own capital and the same amount of external borrowing. The announcement, submitted to South Korea’s Financial Supervisory Service, allows the company to secure financing for the project.
At the end of last year, POSCO agreed to acquire a 20% stake in Hyundai Steel’s new steel mill in the US and will invest 858.6 billion won ($582 million) in it. The partnership between the South Korean companies is a strategy to counter US trade barriers. The Louisiana plant plans to supply high-quality steel products, including automotive sheet steel, to the North American market. The enterprise will create more than 1,400 jobs.
As reported by GMK Center, in March 2025, Hyundai Motor Group announced investments in the US amounting to $21 billion for 2025-2028.
Courtesy : GMKCENTER
