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| Hyundai |
Hyundai’s Strategic Expansion in U.S. Steel Production
Hyundai Steel is advancing its Louisiana EAF steel mill project to support U.S. vehicle assembly. The project aims to produce 2.7 million metric tons annually. This investment aligns with Hyundai’s strategy to reduce reliance on imported steel and secure a domestic supply for Hyundai and Kia assembly plants in Alabama and Georgia. Meanwhile, the Louisiana state government purchased a 1,700-acre site for $91 million to host the $5.8 billion facility.
Advanced Technology and Production Capabilities
Hyundai Steel will deploy $650 million in steelmaking and direct-reduced iron (DRI) equipment from Danieli & C. S.p.A. The facility will include an Energiron DRI plant, two EAFs, secondary metallurgy systems, thick slab casters, and reheating furnaces. These units will convert iron ore into high-quality steel slabs for high-value automotive applications. Although scrap usage is not explicitly mentioned, EAF technology inherently supports recycled steel integration, potentially boosting circular economy benefits.
Market Implications and Timeline
The EAF steel mill could come online by 2030, reflecting a long-term commitment to U.S. manufacturing. As a result, Hyundai can stabilize steel supply amid global market volatility. In contrast, the project underscores Louisiana’s growing role as a strategic hub for heavy industry investment. Additionally, the recognition by Business Facilities magazine with a Platinum Award highlights strong economic and workforce incentives for large-scale industrial projects.
ScrapInsight Commentary
Hyundai’s Louisiana EAF mill reinforces U.S. steel independence while signaling long-term scrap market demand. The facility’s EAF technology could enhance domestic recycled steel consumption, promoting a circular economy. Market prices may stabilize as new high-capacity supply enters the region by 2030.
