Hyundai-POSCO JV commissions Danieli for integrated steel plant in Louisiana

Wednesday, 06 May 2026 11:06:40 (GMT+3)   |   Istanbul

Korean steelmakers Hyundai Steel and POSCO’s US joint venture HYUNDAI POSCO Louisiana Steel LLC has contracted Italian plantmaker Danieli as its technology partner for a new integrated steel plant in Louisiana. The project aims to produce high quality hot rolled slabs, mainly for low carbon and high value added automotive steel grades serving the North American market.

Danieli to supply core steelmaking equipment

Under the contracts awarded, Danieli will provide two electric arc furnaces with secondary metallurgy equipment, two thick slab casters and two slab reheating furnaces. The direct reduction plant will be supplied by the ENERGIRON® consortium, jointly formed by Tenova and Danieli.

ENERGIRON® direct reduction plant to have 2.5 mtpy capacity

The ENERGIRON® Direct Reduction Plant, developed by Tenova and Danieli, will be the second facility of its kind in the US. It will have a nominal annual capacity of 2.5 million mt of hot and cold direct reduced iron. Using Zero Reformer ENERGIRON® technology, the plant is designed to produce DRI with high metallization and controlled carbon content. Danieli stated that the unit will be hydrogen future ready and equipped with carbon capture technology.

Meltshop designed for flexible scrap and DRI use

The meltshop will supply the casting area at a production rate of 2.88 million mt per year. It will include two electric arc furnaces fitted with Zerobucket ECS® continuous scrap charging technology, allowing the plant to operate with charge mixes ranging from 100 percent to hot and cold DRI. Secondary metallurgy will include two twin-ladle furnaces and one twin RH degasser system. The meltshops will also be supported by a complete material handling system and dedicated fume treatment plants.

On the other hand, the two slab continuous casters will use Danieli’s latest technologies. These are designed to produce conventional thick slabs for quality grades, including low carbon emissions steel. Particular focus has been placed on mould level stability and surface quality, both of which are key requirements for automotive steel applications.

Reheating furnaces prepared for hydrogen use

The production line will be completed by two walking beam reheating furnaces, each rated at 280 mt per hour. The furnaces are optimized for low fuel consumption and high operational flexibility. They are also designed to operate with natural gas-hydrogen mixtures of up to 100 percent, supporting future decarbonization targets.

Project strengthens Hyundai-Danieli partnership

Danieli emphasized that the project also reinforces its position as a preferred technology partner for major steelmakers worldwide. The company emphasized that its technologies are designed to combine lower environmental impact, reduced operating costs, high operational reliability and the product quality required for demanding automotive steel grades.


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