Posco and Hyundai have signed a memorandum of understanding for the joint construction of a steel plant in Louisiana. This was stated in an official announcement by Hyundai. The document does not specify the exact details regarding Posco’s investment in the equity of the new enterprise, but it is known that the plant is planned to have an annual production capacity of 2.7 million tons and will begin operations in 2029.
This is reported by Finway
Posco is the largest steel producer in South Korea, while Hyundai ranks second through its subsidiary Hyundai Steel Co. According to the information in the statement, “The Louisiana steel plant will enable the Group to ensure reliable and stable supplies of high-quality next-generation automotive steel sheets to its main production bases in the USA.”
Hyundai’s plan was presented at the end of March, after then-President Donald Trump imposed tariffs on steel. This project has become part of a $21 billion investment surge by the South Korean company, which also includes boosting automobile production. Trump noted that this project is a “visible demonstration” of the effectiveness of tariffs in stimulating domestic production.