Hyundai Steel's $5.8 Billion Electric Arc Furnace Steel Plant in Louisiana Officially Breaks Ground

en.Wedoany.com Reported - On September 4, the groundbreaking ceremony for the HYUNDAI-POSCO Louisiana Steel (HPLS) electric arc furnace integrated steel plant was held in Ascension Parish, Louisiana, USA. The project, jointly invested by Hyundai Steel, POSCO, Hyundai Motor, and Kia, represents a total investment of $5.8 billion. Located at RiverPlex MegaPark, the plant is designed with an annual crude steel production capacity of approximately 2.7 million tons and is scheduled to commence commercial production in 2029.

The project company, HPLS, is owned 50% by Hyundai Steel, 20% by POSCO, and 15% each by Hyundai Motor and Kia, with the Hyundai Motor Group system holding a combined 80% stake. Upon completion, the plant will produce hot-rolled and cold-rolled steel sheets, with approximately 70% of output dedicated to the automotive sector, supplying Hyundai Motor, Kia, and other North American automakers.

The project adopts an electric arc furnace (EAF) plus direct reduced iron (DRI) process route. The Louisiana state government previously disclosed that the steel plant is expected to import approximately 3.6 million tons of iron ore annually and will transport finished coils to automotive manufacturing customers via rail and truck. Hyundai Steel also plans to partner with the Port of South Louisiana to construct a deep-water terminal on the west bank of the Mississippi River in Ascension Parish, with supporting road, rail, power, and pipeline infrastructure progressing in tandem.

Site leveling for the project had already commenced earlier. The September 4 ceremony marks a new milestone as the steel plant transitions from preliminary site works to main construction. The project is expected to create approximately 1,300 direct jobs and 4,100 indirect jobs. Supporting workforce training facilities have also entered the construction planning phase, with River Parishes Community College building the Hyundai Steel Training Center, scheduled to open in the fourth quarter of 2027.