Hyundai Steel Co.

• Hyundai Steel to produce 2.7 million metric tons of steel annually at new Electric Arc Furnace (EAF)-based integrated steel mill in Louisiana, U.S.
• Significant investment to drive automotive steel manufacturing and reduce supply chain carbon emissions in the U.S.
• Commercial production of automotive steel plates targeted for 2029, ensuring stable, high-quality steel supply for global automakers, including Hyundai Motor and Kia
• Hyundai Steel builds its first overseas production base... Expansion into the U.S., where steel demand is robust, provides new growth engine

WASHINGTON and SEOUL, South Korea, March 24, 2025 /PRNewswire/ -- Hyundai Steel Company has announced a significant investment of $5.8 billion to establish a new, state-of-the-art EAF-based integrated steel mill in Louisiana.

Hyundai Steel's Louisiana mill will focus on the production of steel plates for the automotive industry, driving growth in U.S. manufacturing capabilities and creating over 1,300 jobs in the state, while reinforcing Hyundai Steel's commitment to sustainable steel production.

The EAF-based integrated steel mill will provide an annual steel production capacity of 2.7 million metric tons, with commercial production targeted to begin in 2029. The new mill will also incorporate advanced technologies for producing Direct Reduced Iron (DRI), alongside capabilities for hot-rolled and cold-rolled steel plates.

As the first EAF-based integrated steel mill in the United States to integrate all stages of steel production, from raw materials to finished products, Hyundai Steel's new plant will produce high-grade automotive steel while reducing carbon emissions compared with conventional Blast Furnace (BF) operations.

Hyundai Steel is actively pursuing a joint investment initiative with Hyundai Motor Group to ensure stable capital deployment and reinforce the competitiveness of its U.S. business. In parallel, the company is evaluating equity investment opportunities with strategic partners.

"Hyundai Steel's investment in an EAF-based integrated steel mill in the U.S. is anticipated to stimulate local economic growth, including the creation of new job opportunities. We plan to supply automotive steel plates not only for Hyundai Motor and Kia's strategic models but also to expand sales to U.S. automakers in the future," said Hyundai Steel President and CEO, Seo Gang-Hyun.

Bold strategy for sustainable growth… Global recognition through high-end products

Hyundai Steel will respond to the diverse needs of domestic and overseas customers in a timely manner by building an EAF-based integrated steel mill capable of producing high-end products, including automotive steel, in the U.S.

Through localized production, the company will ensure a stable supply of high-quality, domestically produced steel plates to global automakers across America.

The mill will be strategically located near Hyundai Motor Company's Montgomery, Alabama and Kia's West Point, Georgia manufacturing plants – as well as the Hyundai Motor Group Metaplant America (HMGMA) facility in Savannah, Georgia – giving it a competitive edge in supplying automotive steel.

Hyundai Steel 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.

Following successful operations at its Louisiana mill, Hyundai Steel will adopt the EAF-based integrated steel mill system at its plants in South Korea, moving towards the integration of a carbon-neutral production system. In addition, by leveraging its heightened global brand recognition, Hyundai Steel looks forward to securing new customers for steel products produced in South Korea.

Hyundai Steel has more than 70 years of know-how in operating EAFs and has already produced about one million metric tons of automotive steel plates using EAF technology from 2007 to 2010. In October 2022, the company successfully completed the world's first test production of 1.0Gpa-grade carbon-reduced high-grade steel plate through EAF operations.

An official from Hyundai Steel stated, "By establishing a global production base, we aim to secure a foundation for future growth and solidify our position as a steel company capable of sustainable growth."

www.hyundai-steel.com

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