South Korean steelmaker Hyundai Steel has announced that it has decided to carry out a large-scale capital increase at its US subsidiary Hyundai-POSCO Louisiana LLC.
The capital increase is intended to finance the construction of an electric arc furnace (EAF) integrated steel plant in Ascension Parish, Louisiana. The company stated that the purpose of the capital increase is to support the development, financing and operation of the DRP-EAF integrated steel plant in Louisiana.
Facility investment of KRW 4.27 trillion
According to the statement, the total capital increase amounts to KRW 4.27 billion (approximately $2.9 billion). The funds are classified entirely as facility investment capital and will be used exclusively for the construction of a US EAF steelmaking complex. The new facility will have an annual capacity of 2.7 million mt.
The investment period for the project is stated as being from 2026 through the first quarter of 2029, with capital contributions to be paid in instalments during the construction phase.
The final shareholding ratios of the third-party allocation targets below will be: