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Posco mulls investing in Hyundai Steel's U.S. plant project: sources

Published: 14 Apr. 2025, 13:13 Updated: 14 Apr. 2025, 16:52

[POSCO]

Posco, Korea's leading steelmaker, is considering investing in smaller local rival Hyundai Steel's steel mill project in the United States as part of efforts to ride out U.S. President Donald Trump's sweeping tariffs, industry sources said Monday.

Last month, Hyundai Steel announced it will invest $5.8 billion to build an electric arc furnace-based integrated steel mill in Louisiana by 2029, with an aim to start production in the same year.

The announcement came after Trump imposed 25 percent tariffs on steel and aluminum imports in mid-March.

“Posco is considering a stake investment in the Hyundai Steel project,” an industry source familiar with the matter told Yonhap News Agency.

Earlier this month, Posco said it was giving “serious consideration” to investment plans for “upstream steel processes” in the U.S.

Asked about its possible investment in Hyundai Steel's project, Posco said it is considering a variety of options, but no decision has been made yet.

Hyundai Steel said it will sell corporate bonds and take loans from financial institutions to fund half of its planned investment in the U.S. plant.

Yonhap