Hyundai formalizes plan to build $5.8B steel mill in Louisiana

“In particular, Hyundai will be building a brand new steel plant in Louisiana, which will produce more than 2.7 million metric tons of steel a year, creating more than 1,400 jobs for American steelworkers,” the president added.

A report first emerged in January that Hyundai was mulling a sheet steel mill just south of Baton Rouge, La.

Trump said the steel plant in Louisiana is part of an even larger $21-billion investment Hyundai will be making in the US over the next couple of years.

This will be the first-ever steel mill in the United States for the Korean automaker Hyundai Motor Group, parent of Hyundai Steel.

The mill will supply steel for the company’s auto parts and auto plants in Alabama and Georgia, “which will soon produce more than 1 million American-made cars every single year,” Trump said.

Hyundai commits to US investment

Also present at the press conference, Hyundai Motor Group Executive Chair Euisun Chung gave more details about the $21 billion investment over the next four years in the US.

He noted it is the company’s largest US investment ever, and a “key part of this commitment is our $6-billion investment to strengthen the US supply chain from steel and parts to automobiles.”

At the same time, Chung said, “We are also proud to open our new $8-billion auto plant in (Savannah,) Georgia.”

He said the decision to invest in Savannah resulted in the creation of more than 8,500 American jobs.

Further plant details

In a press release on Monday, Hyundai Steel said the Ascension Parish, La., facility will be an EAF-based mill that will be able to produce direct-reduced iron (DRI), along with capabilities for hot- and cold-rolled steel plate.

Hyundai touts the mill as integrating all stages of steel production, from raw materials to finished products.

The company is aiming for commercial production by 2029. It will provide steel for Hyundai Motor Group facilities in the US, as well as fellow Korean automaker Kia, which also has US plants.

The Hyundai Steel facility will be in a joint investment initiative with Hyundai Motor Group. Also, the company said it is evaluating equity investment opportunities with strategic partners.

Besides the US focus, Hyundai will also target markets in Latin America and Europe.

“The company will collaborate with global automotive partners and investors to continuously enhance innovations in research, development and production,” Hyundai Steel added.

The Louisiana mill will serve as a model for Hyundai Steel plants in South Korea, according to the company.

Investment due to tariffs

Trump said the investment is a “clear demonstration” that tariffs work.

“Hyundai will be producing steel in America and making its cars in America, and as a result, they won’t have to pay any tariffs,” the president said. “There are no tariffs if you make your product in America.”

Trump pointed to Taiwanese microchip manufacturer TSMC’s recently announced plans for investment in the US, among others. (A list is available from the White House’s website here.)

When asked by a reporter, Trump agreed that the Hyundai investment could serve as a blueprint for other automakers and companies to invest in the US.