Seoul, April 21 (IANS) POSCO Group, South Korea’s leading steelmaker, said on Monday that it will invest in Hyundai Steel Co.’s steel mill project in the United States, as part of its strategy to navigate U.S. President Donald Trump’s sweeping tariffs on steel imports.
According to a press release, POSCO Group has signed a memorandum of understanding (MOU) with Hyundai Motor Group for its participation in Hyundai Steel’s U.S. plant and to strengthen collaboration in the steel and rechargeable battery sectors.
Last month, Hyundai Steel revealed plans to invest US$5.8 billion to build an integrated electric arc furnace-based steel mill in Louisiana by 2029, with production slated to begin the same year, reports Yonhap news agency.
The 2.7 million-ton-a-year facility is expected to supply steel not only to Hyundai Motor Co. and Kia Corp., but also to other automakers in the U.S., the world’s most important automobile market.
POSCO’s investment decision comes after the Trump administration began imposing 25 percent tariffs on all steel and aluminum imports in mid-March.
POSCO Group previously said it was giving “serious consideration” to investment in upstream steel processes in the U.S., with equity participation being one of several options under review.
“We have not yet determined the size of our stake in the plant project. Discussions will begin soon to decide the investment ratio and other related matters,” a POSCO spokesperson said.
In a recent message to employees, POSCO Group Chairman Chang In-hwa stressed the urgency of global expansion.
“With a sense of crisis that the company will fall behind if it does not act swiftly, we must invest in steel mills in fast-growing and high-margin regions, such as the U.S. and India, to achieve meaningful results,” he said.
POSCO Group expects the MOU will deepen its five-decades-long partnership with Hyundai Motor Group. POSCO is a major supplier of automotive steel to the automaker.
Under the initial agreement, POSCO will supply steel produced at the new Louisiana plant to customers in the U.S. and Mexico, and will also collaborate with Hyundai on developing materials for rechargeable batteries to support future mobility solutions, the company added.
—IANS
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