Posted on 09 Jan 2025
Hyundai Steel in considering building a automotive steel mill in the United States for its mother company Hyundai Motor Group's car plants there to cope with Trumps' protectionist policies, according to market sources. But this Korean steelmaker did not confirm the plan yet, Kallanish notes.
Hyundai Motor Group operates two manufacturing facilities making Hyundai Motor and Kai brands cars in Alabama and Georgia, which are both in southern region of U.S. Hyundai Steel thus is rumored to establish this mill in southern U.S., such as in Georgia, Louisiana and Texas.
The automotive steel output of Hyundai Steel is approximately 5 million tonnes/year, 83% of which is supplied to Hyundai Motor and Kai.
Korea steel industry concerns that the quota of Korea origin steel products exported to the US will be tighter in the second Trump administration, which is up to 2.68 mt/y now, or tariffs is likely to be imposed.
The investment of this new steel mill was around KRW 10 trillion ($6.9 billion) if this plan process. The construction is targeted to begin next Spring and to be completed in 2029, according to market source.
Hyundai steel stated that various options to secure global competitiveness and sustainable growth are on the table to response this news on Wednesday and no official decision has been made yet.
Hyundai Steel CEO told investors that they were reviewing a plan to establish overseas production hub to deal with global protectionism last year.
Hyundai Motor Group also can use this investment to minimize risks in the US because Trump is willing to attract overseas investments.
Source:Kallanish
