Hyundai to Build $5.8B Plant in Louisiana
This project marks the company’s first U.S.-based steel mill.
Hyundai Steel Co. will invest $5.8 billion to build an electric arc furnace-based integrated steel mill in Donaldsonville, La. This marks the company’s first overseas production base and the first such plant in the U.S. to integrate all stages of steel production.
The ultra-low carbon steel development will span roughly 1,700 acres, according to the Louisiana Economic Development. Construction on the project is expected to start in the third quarter of next year, with commercial production slated to begin in 2029.
The steel mill will have a production capacity of 2.7 million metric tons annually upon completion and will employ about 1,300 individuals.
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Hyundai Steel Co. plans to reduce supply chain carbon emissions in the U.S. with the new facility. The firm will ensure supply for global automakers, including Hyundai Motor and Kia. The new mill will feature technologies for producing Direct Reduced Iron and also have the capacity to produce both hot-rolled and cold-rolled steel plates.
The mill will be strategically positioned close to Hyundai Motor Co.’s manufacturing plant in Montgomery, Ala., Kia’s facility in West Point, Ga., and the Hyundai Motor Group Metaplant America site in Savannah, Ga. The plant will anchor RiverPlex MegaPark, an approximately 17,000-acre undeveloped site.
State incentives for the steel mill plant
Hyundai Steel Co. obtained an incentives package from the State of Louisiana, which includes a $100 million performance-based grant for infrastructure improvements, such as road, rail, electric and pipeline upgrades.
The firm will also partner with the Port of South Louisiana to build a deep-water dock on the Westbank of Ascension Parish to accommodate steel and materials shipments. Additionally, Entergy Louisiana is planning major transmission projects on the Westbank of the Mississippi River and in south central Louisiana to boost load-serving capacity for new economic developments such as Hyundai’s steel mill.
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