Hyundai-Posco Louisiana Steel (HPLS), a US-based joint venture between South Korean steelmakers Hyundai Steel Company and Posco Group, has begun construction of a new US$ 5.8 billion fully integrated steel plant in the US state of Louisiana. HPLS will contribute 50% of the funding for the project, with Posco investing 20% and Hyundai and Kia each contributing 15%.
Described as the “first-of-its-kind”electric arc furnace plant, the facility is under construction on a 1,800-acre plot within the RiverPlex MegaPark in Ascension Parish, Louisiana. It will mainly supply low-carbon steel sheets to automakers across North America, particularly to the Hyundai Motor Group (HMG) which controls the project. Production is scheduled to begin in the first quarter of 2029, employing more than 1,300 people directly and thousands more indirectly.
HPLS said the new plant will help “strengthen US manufacturing resilience, localize critical supply chains, and support next-generation mobility industries. By integrating steel production directly into the U.S. automotive ecosystem, HPLS enhances efficiency, reliability, and national competitiveness.”
The company said the new plant will produce high-grade steel while emitting 70% less CO₂ than conventional blast furnace plants. Built near the Mississippi river, the plant will have access to a deep-water port, rail and interstate connections, “enabling efficient inbound raw materials logistics and outbound final steel products distribution across North America.”
The investment will also help South Korea meet its US$ 350 billion US investment commitment under the 2025 US-South Korea Trade Deal. HMG last year also committed to investing US$ 26 billion in the US under a related agreement.
HMG’s chairman, Chung Eui-sun, speaking at the groundbreaking ceremony, said: "This is the first integrated steel mill in the US dedicated to automotive steel sheets. The steel products produced here will help not only Hyundai Motor Group but also other automakers produce next-generation mobility.”
