Seoul: South Korea's industry minister has called on the United States to ease tariffs on equipment needed for a substantial steel mill project in Louisiana. The request was made during a meeting between Industry Minister Kim Jung-kwan and Louisiana Governor Jeff Landry, ahead of the groundbreaking ceremony for Hyundai-POSCO Louisiana Steel LLC (HPLS), a joint venture poised to construct an electric arc furnace-based integrated steel mill.
According to Yonhap News Agency, HPLS is a collaboration among Hyundai Motor Group affiliates Hyundai Steel Co., Hyundai Motor Co., Kia Corp., and steelmaker POSCO. The U.S. tariffs, imposed under Section 232 of the Trade Expansion Act of 1962, present challenges for foreign steelmakers by allowing the U.S. president to adjust imports deemed a threat to national security. Kim emphasized the necessity of easing these tariffs to facilitate the $5.8 billion investment by Korean companies.
The project aims to bolster supply chain cooperation by merging South Korean steelmaking technology with U.S. industrial infrastructure. The plant will have an annual production capacity of 2.7 million tons of various types of steel, marking it as the first U.S. electric arc furnace-based mill dedicated to automotive steel production. The use of direct reduced iron and electric arc furnaces is expected to reduce carbon emissions by approximately 70 percent compared to traditional methods.
The Louisiana plant will supply automotive steel to production facilities in the southern U.S. and Mexico, including those operated by Hyundai Motor and Kia. Hyundai Motor Group Executive Chair Euisun Chung highlighted the plant's role in advancing next-generation mobility solutions and contributing to industrial infrastructure development.
Susan B. Bourgeois, Louisiana Economic Development Secretary, noted the transformative impact of Hyundai Steel's investment on the state's economy. The project aligns with Hyundai Motor Group's broader $26 billion U.S. investment plan announced last year, with commercial production slated to begin in 2029.
POSCO holds a 20 percent stake in the project, while Hyundai Steel, Hyundai Motor, and Kia share the remaining 80 percent.