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3w ago

POSCO Evaluates Investment in Hyundai Steel's $5.8 Billion U.S. Steel Mill

Hyundai Steel advances its Louisiana project as POSCO explores potential collaboration to navigate U.S. tariffs.

The logo of POSCO is seen at the company's headquarters in Seoul, South Korea, July 20, 2016. REUTERS/Kim Hong-Ji/File Photo
This file photo, taken March 12, 2025, shows aluminum products at a plant in Hwaseong, about 45 kilometers south of Seoul. (Yonhap)

Overview

  • Hyundai Steel is progressing with its $5.8 billion investment in an electric arc furnace-based integrated steel mill in Louisiana, set to begin operations by 2029.
  • POSCO is considering a stake in Hyundai Steel's project as part of its broader strategy to address U.S. steel tariffs and expand upstream steel operations in North America.
  • The U.S. imposed a 25% tariff on steel and aluminum imports in March 2025, prompting South Korean steelmakers to recalibrate their investment strategies.
  • Hyundai Steel plans to finance half of its investment through corporate bonds and loans from financial institutions.
  • POSCO has yet to finalize its decision but is evaluating various investment options to enhance its presence in the U.S. steel industry.