South Korea’s Hyundai Steel has announced plans to invest $5.8 billion [1] in a new steel plant in Louisiana, United States. The facility, which will have an annual production capacity of 2.7 million tonnes, is part of Hyundai Motor Group’s broader $21 billion investment strategy in the U.S. market.
The announcement, made during a high-profile event at the White House, was praised by U.S. President Donald Trump as a testament to the effectiveness of tariffs in encouraging foreign investment. The new plant is expected to create over 1,400 jobs and supply steel to Hyundai’s automotive plants in Alabama and Georgi.
Despite the ambitious plans, Hyundai Steel’s shares experienced a sharp decline, closing 7% lower after an initial surge of over 5%. Analysts have raised concerns about the company’s ability to fund the project, given its existing debt levels and the challenges associated with adopting new electric furnace technology.
The investment is seen as a strategic move to mitigate the impact of U.S. tariffs on steel and automobiles. However, it remains uncertain whether this will secure tariff exemptions for Hyundai and South Korea, which has a significant trade surplus with the U.S.
Sources:
[1] Hyundai Steel unveils US factory plan, shares skid https://www.reuters.com/markets/commodities/hyundai-steel-build-plant-louisiana-with-annual-output-27-million-tonnes-2025-03-25/