International Steel Mills

Hyundai mulls building sheet steel mill in southern US

Written by Laura Miller


Hyundai Motor Group is reportedly considering building a sheet steel mill just south of Baton Rouge, La.

Sources familiar with the project told The Advocate that the steel mill, the company’s first in the US and the first in an overseas market, would serve the Hyundai assembly plant in Montgomery, Ala., and the Kia assembly plant in West Point, Ga. It would provide the automotive steels for the 600,000+ vehicles the company sells annually in the US.

The sources said groundbreaking on the more than $6-billion mill could begin as soon as 2026 and production by 2029, pending the approval by state and local governments.

By producing its steel in the US instead of importing Korean material, Hyundai would save on shipping and logistics costs and avoid the potential new tariffs the incoming Trump administration has in the works, the Advocate pointed out.

Other attractive points include cheap natural gas and electricity to power the mill and easy access to transportation routes.

Additionally, the Advocate said Louisiana Economic Development has offered Hyundai tax and rebate incentives to build the mill in the state.

“Hyundai Motor Group officials confirmed the group is “reviewing” the construction of a steel mill in the US, but declined to give further details,” the Korea Economic Daily reported on Tuesday.

Hyundai did not respond to an SMU request for more information.

Laura Miller

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