South Korea-based steel producer Hyundai Steel announced a major investment plan in the US. The company announced plans to build a steel plant with an annual production capacity of 2.7 million tons in the state of Louisiana in cooperation with Hyundai Motor Group. According to a regulatory filing on Tuesday, the project will involve an investment of USD 5.8 billion.
The new plant is intended to increase the supply of advanced steel, especially for electric vehicle production. By producing in the US, Hyundai Steel aims to directly respond to the need for steel in the local market, strengthen its supply chains and increase its competitiveness in the industry. Upon completion of the investment, the plant is expected to provide high-quality steel products to many sectors, especially the automotive industry.
Hyundai Steel's shift towards production in the US is also considered a remarkable development in terms of global steel trade. Considering the US' goals of increasing domestic steel production and changing trade policies, this investment is a strategic move for both Hyundai Steel and the American industry.
While more details regarding the company's investment process are expected to be announced in the coming period, it is stated that work on the construction schedule and production start date of the plant is ongoing.
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