STOCKS | Hyundai Steel Breaks Ground on $5.8 Billion Louisiana Steel Plant

Hyundai Steel held a groundbreaking ceremony in Louisiana for an electric arc furnace steel plant with a total investment of $5.8 billion. According to Sina Finance, the company said on Friday that the project is scheduled to begin commercial production in 2029. The plant will have an annual capacity of 2.7 million tons and will be operated by Hyundai-POSCO Louisiana Steel LLC, a joint venture formed by Hyundai Steel, POSCO, Hyundai Motor, and Kia. According to Sina Finance, the project is expected to create 5,400 jobs, including 1,300 direct positions. The plant will supply automotive steel to Hyundai Motor's Alabama factory, Kia's production base in Georgia, and Hyundai Motor Group's U.S. mega factory in Georgia, as well as other U.S. automakers. According to Sina Finance, the steel plant is part of Hyundai Motor Group's $26 billion U.S. investment commitment through 2028. The company said the integrated steel plant is the first of its kind in the United States, combining direct reduced iron production, electric arc furnace steelmaking, and downstream automotive steel rolling. According to Sina Finance, the process is expected to cut carbon emissions from crude steel production by about 70% compared with the company's traditional blast furnace process in South Korea.