South Korea-based steelmaker POSCO has announced that it plans to invest approximately KRW 858.56 billion ($582 million) to acquire a 20 percent stake in a new steel plant that South Korean steelmaker Hyundai Steel plans to build in Louisiana, US, according to a filing submitted to the US Securities and Exchange Commission. Under the disclosed plan, the investment will be made through POS-Louisiana, a newly established local subsidiary of POSCO.
In April, Hyundai Steel reached an agreement with POSCO Holdings to collaborate on steel production in the US, as SteelOrbis previously reported.
Investment structure and timeline
According to the filing, POSCO’s investment will be made by the end of 2027. POS-Louisiana will remain a 100 percent-owned subsidiary of POSCO, serving as the vehicle for the US investment.
The investment decision reflects POSCO’s assessment of long-term demand trends in the North American steel market, particularly for environmentally friendly steel products.
New plant’s capacity
The Louisiana project is designed as an EAF-based steel mill, aligning with POSCO’s broader strategy to expand low-carbon steelmaking capacity. The new plant, which will have an annual production capacity of 2.7 million mt, will support the production of steel products for the automotive industry. The plant’s production is scheduled for start-up in 2029.
Strategic importance of US market
The planned investment strengthens POSCO’s industrial presence in the US and deepens cooperation with Hyundai Steel, a key strategic partner. The move comes as global steelmakers continue to localize production in major end-markets to mitigate trade risks, tariffs and supply-chain disruptions.
By participating in the Louisiana EAF project, POSCO aims to secure a stable production base in North America while responding to shifting market conditions and customer requirements.
