New Louisiana Steelworks
Hyundai and POSCO Break Ground on $5.8B Louisiana Steel Mill
Anonymous
Key Points
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The joint venture’s ownership is divided among Hyundai Steel (50%), POSCO (20%), Hyundai Motor (15%) and Kia (15%), giving Hyundai Motor Group companies an 80% combined stake.
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The roughly 1,822-acre site has already undergone months of preparation, including clearing, drainage, road construction and groundwork; full-scale construction is scheduled to begin in the fourth quarter.
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Hyundai Steel’s Louisiana project will be its first steel production base in North America and is planned as the first U.S. integrated mill dedicated to automotive sheet steel.
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Hyundai Motor Group Executive Chair Euisun Chung described HPLS as “a starting point for the steel industry to move toward a more circular and sustainable future,” saying the project would show that industrial innovation and sustainability can coexist.
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The groundbreaking ceremony drew senior officials from both countries, including Louisiana Governor Jeff Landry, U.S. Under Secretary of Commerce for International Trade William Kimmitt, South Korean Trade Minister Kim Jung-kwan and South Korean Ambassador to the United States Kang Kyung-wha.
Hyundai Steel and POSCO broke ground on a $5.8 billion electric-arc-furnace steel mill in Louisiana, marking the first North American steelmaking base for the South Korean companies Korea JoongAng Daily. The joint venture, backed by Hyundai Motor and Kia, will produce 2.7 million metric tons of automotive steel annually starting in 2029, with emissions up to 70% lower than traditional mills Korea Herald.
The Donaldsonville facility is expected to create roughly 5,400 jobs, including 1,300 direct positions, and anchor Hyundai Motor Group's broader $26 billion U.S. investment push through 2028 Journal Star. CEO José Muñoz pledged that Hyundai will use the Louisiana steel across its entire vehicle lineup while supplying its Alabama and Georgia plants SE Daily.
A Strategic Footprint for Hyundai's U.S. Growth
The mill sits on 1,822 acres near the Mississippi River, railroads, highways, and Gulf ports—a location designed to strengthen supply-chain resilience across the U.S. South and Mexico Korea Herald. Hyundai Steel owns 50% of the joint venture, POSCO holds 20%, and Hyundai Motor and Kia each own 15%, giving Hyundai Motor Group an 80% combined stake Journal Star.
Construction Underway With 2029 Production Target
The site has undergone months of preparation including clearing, drainage, and road construction Journal Star. Full-scale construction begins in the fourth quarter, with commercial production slated for 2029. This marks Hyundai Steel's debut in North American steelmaking and the first U.S. integrated mill dedicated exclusively to automotive sheet steel.
Low-Emissions Technology as a Sustainability Benchmark
The mill uses direct-reduction and electric-arc furnace technologies to cut carbon emissions by as much as 70% compared with conventional steelmaking Korea JoongAng Daily. Hyundai Motor Group Executive Chair Euisun Chung called HPLS "a starting point for the steel industry to move toward a more circular and sustainable future," arguing that industrial innovation and sustainability can coexist Korea Herald.
High-Level Support From U.S. and South Korean Officials
The groundbreaking ceremony drew Louisiana Governor Jeff Landry, U.S. Under Secretary of Commerce for International Trade William Kimmitt, South Korean Trade Minister Kim Jung-kwan, and South Korean Ambassador to the United States Kang Kyung-wha Journal Star. The event underscores the project's significance as a cross-border industrial investment backing Hyundai's localization strategy in North America.
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