Hyundai Steel Company Ltd (HSC), a unit of South Korea’s Hyundai Motor Group (HMG), is considering building its first overseas steel mill in the US in anticipation of tougher trading regulations under a new government led by Donald Trump.

According to local reports, HMG confirmed HSC is considering building a steel plant in the US, without providing further details. An HSC spokesperson confirmed that the company “has been considering investing in the US, but a final decision has yet to be reached.”

The US President-elect is scheduled to be sworn into office and form a new administration later this month. He has repeatedly said during the course of his election campaign that his government will introduce higher duties on imports from major trading partners in order to attract investment in domestic production.

HSC is understood to be in the process of finalising plans to build a KRW10trn (US$6.9bn) steel production facility near New Orleans, in the US state of Louisiana, primarily to supply automotive steel to HMG - which has a Hyundai vehicle production plant in the neighbouring state of Alabama and a Kia plant in nearby Georgia. A third plant went into operation in late 2024 in Georgia to produce electric and hybrid vehicles under the Hyundai and Kia brands.

When the third plant becomes fully operational, the three facilities will have a combined production capacity of between 1.0 million and 1.2 million vehicles per year.

HSC is said to have also considered Texas and Georgia as possible locations for the facility, but is now said to favour Louisiana. Construction of the plant is expected to begin in early 2026, with completion likely by 2029.