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| Hyundai Steel |
Hyundai Steel, South Korea's leading steelmaker, is exploring the possibility of establishing its first overseas steel mill in the southern United States. The proposed mill would employ an electric arc furnace (EAF) steelmaking process, but the project has not yet been confirmed.
Hyundai Steel's Global Expansion
With an annual production capacity of 24 million metric tons, Hyundai Steel’s operations in South Korea are evenly divided between blast furnace and EAF steelmaking. The blast furnaces primarily supply steel sheet, plate, and welded pipe for the automotive, construction, and shipbuilding industries, while the EAFs produce rebar, H-sections, and other construction materials.
If approved, this project would mark Hyundai Steel's first production facility outside South Korea. The company has not disclosed details about the mill’s potential products or target industries, but its proximity to Hyundai Motor Group’s automotive plants in Alabama and Georgia suggests a strategic alignment with the growing electric vehicle (EV) market.
Steel Industry Dynamics in the Southern US
The southern United States already hosts eight EAF and re-rolling flat-rolled steel mills with a combined production capacity of 23.8 million metric tons annually. Hyundai Steel’s entry into the region could intensify competition while addressing the increasing demand for automotive and construction materials.
Hyundai Motor Group’s $5.5 billion EV and battery manufacturing plant in Georgia, announced in May 2022, signals a broader commitment to the US market. This investment aligns with the potential steel mill project, which could support Hyundai's automotive ventures amidst rising protectionist trade policies in the US.
