South Korea's Hyundai Steel plans $2.9 billion capital increase for US steel plant

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South Korea's Hyundai Steel plans $2.9 billion capital increase for US steel plant.

companies :: 2026-01-26 :: source - reuters

By Joyce Lee and Heekyong Yang

(Reuters) - South Korea's Hyundai Steel (004020.KS) said in a ‌regulatory filing on Monday its affiliate Hyundai-POSCO Louisiana LLC plans a capital increase worth $2.9 billion for facilities investment in a US steel ‌plant.

The move follows Hyundai Steel's announcement last year it and its parent Hyundai Motor (005380.KS) Group would invest to build a ‍steel plant in Louisiana, United States with an annual capacity of 2.7 million tonnes.

Hyundai Motor Group had ⁠also signed a memorandum of understanding with ‍South Korean steelmaker Posco Holdings (005490.KS) for cooperation on its ‌planned ‌US steel plant.

Hyundai-POSCO Louisiana LLC is an U.S.-based subsidiary of Hyundai Steel USA, which is wholly owned by Hyundai Steel.

Hyundai Steel ⁠said it ⁠plans to finance the total investment of $5.8 billion with $2.9 billion in equity and $2.9 billion in external borrowing, meaning ‍that the equity ownership will comprise Hyundai Steel USA Corp with a 50% stake, POS-Louisiana Inc with 20%, and Hyundai Motor ‍America and Kia America with 15% each.

Reporting by Joyce Lee and Cynthia Kim, Editing by Louise Heavens

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