Hyundai Motor Group is reportedly planning to build its first overseas steel plant in New Orleans, Louisiana, USA. The South Korean automotive giant’s move aims to reduce the potential impact of protectionist trade policies expected to be implemented during Donald Trump’s second term as president.
The investment, worth around 10 trillion won (USD 7 billion), will support the production capacity of Hyundai’s Hyundai Motor Group Metaplant America LLC (HMGMA) plant in Georgia, which was put into operation last year and is specifically designed for electric vehicles (EVs). HMGMA’s annual production capacity ranges from 300,000-500,000 units.
The new plant is planned to supply automotive steel sheets to Hyundai’s assembly lines in Alabama and Kia’s plant in Georgia. It is stated that the annual steel sheet requirement of these facilities, which produce a total of 680,000 vehicles, is approximately 1.2 million tons. According to sources, the annual capacity of the new factory can reach 2-3 million tons, more than meeting this need.
The steel factory that Hyundai plans to build in the US will use direct reduction technology, which produces lower carbon emissions than traditional blast furnace methods. This environmentally friendly technology increases Hyundai's chances of complying with environmental regulations in the US and receiving approval.
Hyundai Motor Group initially evaluated the states of Texas, Georgia and Louisiana. It was learned that the company preferred New Orleans due to its logistical advantages and flexibility in tax policies. If the project is approved, construction is aimed to start in the spring of 2026 and be completed in 2029.
This initiative draws attention as part of Hyundai Steel's strategy to expand its customer base. The company aims to become one of the three largest automotive steel manufacturers in the world by supplying 40% of its products to companies outside the Hyundai group.
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