Hyundai Motor Group Chairman Chung Eui-sun (third from the left) commemorates the launch of the 'Hyundai Steel Company-POSCO Louisiana Electric Furnace Steelworks' construction project by participating in a groundbreaking ceremony alongside key figures held on April 4 (local time) in Donaldsonville, Louisiana. From left to right: POSCO Group Chairman Jang In-hwa, Louisiana Governor Jeff Landry, Chairman Chung, U.S. Representative Troy Carter, South Korean Minister of Trade and Industry Kim Jung-kwan, Under Secretary of Commerce for International Trade William Kimmitt, and Hyundai Steel Company President Lee Bo-Ryong. Courtesy of Hyundai Motor Group. [Donaldsonville, USA = Reporter Cho Eun-hyo] Hyundai Motor Group Chairman Chung Eui-sun presented a plan to produce high-grade, carbon-reduced steel locally in the United States starting in early 2029 and supply it not only for automotive steel sheets but also to various advanced industries in the United States, including humanoid robots, artificial intelligence (AI) data centers, and aerospace. Hyundai Steel Company, in alliance with its competitor POSCO, will jointly construct HYUNDAI-POSCO Louisiana Steel LLC (HPLS), the first electric-furnace-based steelworks specializing in automotive steel sheets in the United States and the first K-steelworks to enter the U.S. market. Korea's two leading steel companies have joined hands to overcome the hurdles posed by the 50% tariffs on steel imported into the United States. Once the HPLS steelworks, involving a total investment of $5.8 billion (approximately 8 trillion won), begins commercial operations in the first quarter of 2029, Hyundai Motor Group will complete its vertical automotive production system—from molten iron to automobiles, with an annual production capacity of 1 million units—in the United States, following its success in Korea. This is expected to give further momentum to the U.S. market penetration efforts of Hyundai Motor Company and Kia Corporation, the world's third-largest automaker and the fourth-largest in the United States.
Hyundai Steel Company-POSCO Louisiana Electric Furnace Steelworks Project At the groundbreaking ceremony for HYUNDAI-POSCO Louisiana Steel LLC (HPLS), held on April 4 (local time) in Donaldsonville, Ascension Parish, Louisiana, Chairman Chung Eui-sun emphasized, "The HPLS steelworks is the first electric-furnace-based integrated steelworks specializing in automotive steel sheets in the United States, and it is also a first attempt for Hyundai Steel Company." He added, "We will produce high-grade, carbon-reduced steel by combining direct reduced iron and electric-furnace technology. It will be used for next-generation mobility produced by Hyundai Motor Company, Kia Corporation, and other automakers, as well as for artificial intelligence (AI) data centers and power-generation facilities."
Hyundai Motor Group Chairman Chung Eui-sun answers questions from reporters at the groundbreaking ceremony for the Hyundai Steel Company-POSCO Louisiana Steelworks held in Donaldsonville, Louisiana, in the southern United States, on April 4 (local time). Courtesy of Hyundai Motor Group. Chairman Chung went further, stating, "We will naturally apply the high-value-added steel produced at the HPLS electric-furnace steelworks to Hyundai Motor Group's Atlas (humanoid robot), and we hope to be able to supply it to SpaceX or rockets in the future." This is interpreted as a strong indication of his determination to enter the high-value-added steel market, focusing on the advanced industrial sector in the United States.
The HPLS electric-furnace steelworks, involving an investment of 8 trillion won, is the first project to be pursued under the U.S. investment plan ($26 billion, or 28.5 trillion won, with the final amount confirmed in August 2025) that Chairman Chung personally announced at the White House last March, shortly after the launch of Donald Trump's second administration amid escalating U.S. tariff pressure. Hyundai Steel Company and POSCO are expected to strengthen their ability to respond to the 50% U.S. steel tariffs through the construction of the HPLS electric-furnace steelworks. Chairman Chung emphasized, "This steelworks is not merely an investment in a facility or plant," adding that it is "an investment in the Louisiana community as well as in strengthening U.S. manufacturing leadership."
Aerial view of the Hyundai Steel Company-POSCO Louisiana Steelworks. Courtesy of Hyundai Steel Company. Hyundai Steel Company and POSCO will reclaim approximately 7.37 million square meters (2.23 million pyeong) of sugarcane fields in Donaldsonville, near New Orleans, Louisiana, to construct an integrated electric-furnace steelworks with an annual production capacity of 2.7 million tons (1.8 million tons for automotive use and 900,000 tons for general use). The 2.7 million tons represents enough steel to manufacture 2.7 million automobiles. Construction is scheduled to begin in the fourth quarter of this year, once local permitting procedures are completed. The ownership structure is Hyundai Motor Group 80% (Hyundai Steel Company 50%, Hyundai Motor Company 15%, and Kia Corporation 15%) and POSCO 20%.
Louisiana Governor Jeff Landry, known as a key power player in the Trump administration and appointed as the U.S. government's special envoy to Greenland, expressed high expectations in his congratulatory remarks, stating, "Hyundai Steel Company's investment will create quality jobs and provide new opportunities for companies in the Louisiana region."
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