Hyundai Steel, together with POSCO, has advanced its planned US steel investment through its joint venture Hyundai-POSCO Louisiana Steel (HPLS), following the signing of a long-term power supply agreement with Entergy Louisiana.
The agreement will support electricity supply for the group’s USD 5.8 bln steel manufacturing facility in Louisiana, marking a key milestone in the project’s development.
The plant, to be located in Donaldsonville, Louisiana, will focus on the production of low-carbon automotive steel, forming part of Hyundai Motor Group’s strategy to establish a fully integrated supply chain in North America.
The project represents Hyundai Motor Group’s first steel mill in North America and is aimed at supporting its automotive manufacturing operations in the US market.
Hyundai-POSCO Louisiana Steel will produce annually 650,000 tons of HRC and 2.05 mln tons of CRC, using a direct reduction plant-electric arc furnace (EAF) route to deliver high-quality, low-carbon steel. Around 70pct of output, approximately 1.8 mln tons per year, will be dedicated to automotive applications.