POSCO Expands U.S. Footprint with Stake in Hyundai Steel’s Louisiana Mill

SEATTLE (Scrap Monster): South Korea’s steel giant POSCO Holdings has finalized an agreement to purchase a 20% equity stake in Hyundai Steel’s upcoming steel manufacturing facility in the United States, marking a major cross-border investment move. The development was disclosed by Maeil Business Newspaper, citing regulatory filings.

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As per documents submitted to South Korea’s Financial Supervisory Service, POSCO Holdings will inject 858.6 billion won (approximately $582 million) into the electric arc furnace (EAF) steel plant being developed in Louisiana under Hyundai Steel’s leadership.

The project carries a total investment value of $5.8 billion, positioning it among the largest overseas steel-sector investments ever made by Korean corporations.

Key project details include:

·         Hyundai Steel holding a 50% controlling stake

·         POSCO Holdings owning 20%

·         Hyundai Motor and Kia each taking 15%

·         Remaining capital secured through external financing

The Louisiana facility is designed for an annual output of 2.7 million tonnes and will primarily supply high-grade steel products, including automotive sheet steel, to the North American market.

The partnership is widely viewed as a strategic response to tightening U.S. trade regulations.