South Korea’s Hyundai Motor Group has announced that it has reached an agreement with domestic steelmaker POSCO Holdings to collaborate on steel production in the US.
Accordingly, Hyundai seeks to increase its competitiveness in the global markets, while POSCO aims to become a key supplier of automotive steel. Consequently, the companies will work together to accelerate the transition towards low-carbon-emissions steel production and to adapt easily to the rapidly changing global business environment.
Meanwhile, within the scope of the agreement, POSCO plans to make an equity investment in Hyundai Steel’s recently unveiled steel project in the US. As SteelOrbis reported previously, the latter will build an electric arc furnace (EAF)-based steel mill with a capacity of 2.7 million mt per year in Louisiana.
The plant entailing an investment of $6 billion will produce high-quality hot rolled and cold rolled sheets for the automotive industry, with its production scheduled for start-up in 2029. Also, the project will pave the way for POSCO to enter the North American steel market.