Hyundai Steel will raise more than KRW 4 trillion in funding for a local joint venture in order to build an integrated steel mill in the state of Louisiana in the United States.

On the 27th, Hyundai Steel announced that, following a board resolution on the 23rd, Hyundai Posco Louisiana, an overseas subsidiary of Hyundai Steel’s U.S. corporation, will conduct a paid-in capital increase through a third-party allocation. A paid-in capital increase is a method by which a company issues new shares to investors to expand its capital base, thereby raising large-scale project funds without interest burden. The KRW 4.2688 trillion thus raised is to be used for the construction of an electric arc furnace-based steel mill in Louisiana. The investment period runs from this year through the first quarter (January–March) of 2029.

The paid-in capital increase will be participated in by Hyundai Steel’s U.S. entity as well as Hyundai Motor’s U.S. subsidiary, Kia’s U.S. subsidiary, and Posco Louisiana, which will become customers of the steel mill in the future. In line with the local joint venture structure, the final shareholding ratio will be composed of Hyundai Steel 50%, Hyundai Motor 15%, Kia 15%, and Posco 20%. The slabs (semi-finished products made by solidifying molten steel) produced after completion of the steel mill will be supplied to Hyundai Motor’s plant in Alabama and Kia’s plant in Georgia, among others.

Hyundai Steel has been pursuing the construction of this steel mill as a key pillar of its North American low-carbon supply chain strategy, making it a production base for electric arc furnace-based steelmaking. In particular, the company plans to establish a specialized production system for automotive steel sheets for the North American market and to produce 2.7 million tons per year of hot-rolled and cold-rolled coated sheet products.

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