Hyundai Steel has finalized the investment size for an electric arc furnace integrated steel mill it plans to build in Louisiana. Hyundai Motor Group, including Hyundai Steel, Hyundai Motor and Kia, will hold 80% equity, with POSCO securing the remaining 20%.
On the 16th, Hyundai Steel disclosed that it will contribute $1.46 billion (about 2.1522 trillion won) to establish a U.S. corporation (Hyundai Steel USA) to invest in building the electric arc furnace steel mill.
Through this entity, Hyundai Steel will contribute the same amount to a local company (Hyundai Steel Louisiana LLC) that will own and operate the U.S. electric arc furnace steel mill, securing 50% equity in the entity.
It also said the remaining equity will be held equally at 15% each by Hyundai's U.S. unit and Kia's U.S. unit, with POSCO holding the remaining 20% equity. Hyundai and Kia will each invest 649.4 billion won, and POSCO Group will invest 858.6 billion won.
Through this, Hyundai Steel will secure half of the total $5.8 billion (about 8.559 trillion won) expense for building the electric arc furnace steel mill. The remaining $2.9 billion (about 4.2795 trillion won) will be raised through borrowing by the entity that will own and operate the mill.
The investors including Hyundai Steel plan to establish a specialized production system for automotive steel sheets through the Louisiana mill and supply 2.7 million tons (t) annually of hot-rolled and cold-rolled galvanized sheet products to the U.S. market.