POSCO Holdings is reportedly considering an equity investment in a U.S. electric steel mill being built by Hyundai Steel.
The United States has increased trade barriers by imposing a 25% tariff on steel products since the administration of President Donald Trump, which is interpreted as a measure to respond to this situation.
According to the steel industry on the 14th, POSCO is reviewing various investment options in the U.S., including an equity investment in an electric steel mill that Hyundai Steel is set to build in Louisiana.
Previously, Hyundai Motor Group announced its plan to build a specialized steel mill for automotive steel sheets in the U.S. at a cost of $5.8 billion (approximately 8.5 trillion won).
The mill aims for commercial production by 2029, with an annual production capacity of 2.7 million tons. Hyundai Motor Group is reviewing a plan to cover half of the steel mill's investment through external borrowing.
In this context, POSCO, which exports 500,000 tons of hot-rolled steel sheets annually, is also reviewing U.S. investments and is being mentioned as an investor in the Hyundai Steel mill.
Chung In-wha, chairman of POSCO Group, also noted in his New Year's address this year, "We must achieve results through a comprehensive localization strategy from materials to products in global growth markets such as India and North America."
However, a representative from POSCO Group explained that "it is true that we are reviewing various strategic options regarding U.S. investments, but nothing has been confirmed yet."