Hyundai Steel and Fives advance major contract for U.S. automotive steel production facility
The agreement supports the construction of a new flat steel mill in the United States by Hyundai-POSCO Louisiana Steel, with an annual production capacity of 2.7 million tonnes. The project represents a significant milestone in strengthening industrial cooperation between South Korea, France, and the United States.
New low-carbon steel facility
The new facility, with an estimated investment of $5.82 billion, will produce 650,000 tonnes of hot-rolled coil and 2.05 million tonnes of cold-rolled coil annually. Utilizing a direct reduction plant-electric arc furnace (EAF) process, the mill will deliver high-quality, low-carbon steel products. Approximately 70% of total output - equivalent to 1.8 million tonnes per year - will be dedicated to automotive steel applications.
As the world’s first fully EAF integrated steel mill dedicated to automotive steel production, this facility will manufacture products that generate approximately 70% less CO₂ emissions compared to those produced via traditional blast furnace routes.
This project aims to establish a robust U.S.-based supply chain for advanced automotive steel, addressing increasing demand from global automakers while supporting the expansion of commercial-grade steel distribution across North America.
Advanced steel processing technologies
Fives Group brings its extensive expertise in coil processing technologies, with recent successful project deliveries across the United States, Mexico, and China.
“We are proud to support Hyundai Steel and POSCO in this landmark investment, which will play a key role in advancing automotive steel production in the United States. We are confident the cooperation between our companies will further grow and strengthen through this new project in the United States,” says Frédéric Sanchez, Chairman & Chief Executive Officer of Fives Group.
“This contract represents a major milestone for Fives Group and reflects the strong trust placed in our technologies by our long-standing partners, Hyundai Steel and POSCO. Given its strategic importance to Fives Group, we are fully committed to the successful implementation of this project,” adds Guillaume Mehlman, President for the Process Industries and Deputy General Manager of Fives Group.