Hyundai Motor Group announced on Monday that it has signed a memorandum of understanding with Posco Holdings for collaboration on a new steel plant in Louisiana. Posco will invest in the project, marking a significant step for both companies in expanding their U.S. operations.
According to a press release, Posco is also considering selling some of the steel produced at the facility, which is set to begin production in 2029. This move follows Hyundai’s recent announcement to invest $21 billion in the United States, made alongside President Donald Trump at the White House last month.
In a regulatory filing, Hyundai Steel revealed that it would invest $5.8 billion, joining Hyundai Motor Group in the development of the steel plant, which is expected to have an annual production capacity of 2.7 million tonnes.
This announcement comes after the U.S. government imposed a 25% tariff on South Korean steel earlier this month, though the tariff was temporarily suspended for three months.
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