Hyundai Steel to Build $5.8 Billion Plant in Louisiana with 2.7 Million Tonnes Annual Output

Hyundai Steel, in partnership with Hyundai Motor Group, has unveiled plans to build a significant steel manufacturing plant in Louisiana, United States, with an expected annual production capacity of 2.7 million tonnes. This new venture, which comes with an investment of $5.8 billion, is part of Hyundai’s broader $21 billion investment strategy in the U.S.

Hyundai SUV's

The plant aims to meet the growing demand for automotive steel and mitigate the impact of U.S. tariffs on steel and vehicles. The move follows discussions between Hyundai’s leadership and U.S. President Donald Trump, who endorsed the initiative. This development is expected to enhance Hyundai’s competitiveness in the global market while securing a local supply of steel for its U.S. manufacturing plants.

Despite initial enthusiasm, Hyundai Steel's stock experienced a decline, reflecting concerns over the company's high debt levels and the potential challenges involved in building the plant using innovative electric furnace technology for steel production. Analysts have raised questions about the long-term benefits of the investment and the financial risks tied to the project.

Construction of the plant is set to begin in 2026, with completion expected by 2029. While Hyundai Steel will cover half of the costs, the remainder will be funded by its parent company and other investors. The new facility is poised to play a crucial role in strengthening Hyundai’s position in the North American automotive market, providing both a strategic advantage and a solution to the complex trade and tariff environment.

This plant is part of Hyundai’s ongoing efforts to bolster its presence in the U.S., reflecting a strategic shift towards local production and reducing reliance on imports.