Hyundai Steel has signed a $650 million (about 942 billion won) contract to supply steelmaking equipment with Danieli, an Italian specialist in steel plant facilities.
According to foreign media on Jan. 8, Hyundai Steel recently selected Danieli as the technology partner for an electric-arc-furnace integrated steel mill to be built in Louisiana, United States, and signed a supply contract of this size.
Accordingly, Danieli will supply a direct reduced iron (DRI) plant based on Energiron technology jointly developed with Tenova, as well as an electric arc furnace equipped with a secondary refining system, a continuous casting line, and a reheating furnace.
The DRI plant based on Energiron developed by Danieli and Tenova can use not only natural gas but also hydrogen as a reducing agent and is characterized by having a carbon dioxide removal section.
The DRI facility is the core of the electric-arc-furnace integrated steel mill that Hyundai Steel is pursuing in Louisiana. Hyundai Steel plans to produce 2.7 million tons (t) of steel products annually there starting in 2029 while cutting carbon emissions by up to 70% compared with the blast furnace process.
It will establish a joint venture with Hyundai Motor, Kia, and POSCO and invest a total of $5.8 billion (about 8.41 trillion won). Seventy percent of the products will be made into automotive steel sheets to supply not only Hyundai Motor and Kia's U.S. plants but also local finished vehicle makers.