From Yahoo Finance: 2025-03-24 20:34:00

Hyundai Steel plans to invest $5.8 billion with Hyundai Motor Group to build a steel plant in Louisiana, U.S., with a capacity of 2.7 million tonnes. The move is part of Hyundai Motor Group’s $21 billion investment in the U.S., aimed at shielding from U.S. tariffs. Trump praised the plan, causing Hyundai Steel shares to drop 7%.

Hyundai Motor and Kia Corp shares surged as they are expected to source steel from the new U.S. plant. Hyundai Motor shares rose 3.3%, reaching their highest since October 2024. Kia closed up 2.1%. Analysts have concerns about how Hyundai Steel will fund the project, given its debt level and the risks associated with the new technology.

The construction of the automotive steel plant is set for 2026-2029. Hyundai Steel will cover half the costs, with the rest to be invested by its parent company and other investors. Analysts are uncertain about the benefits of the investment for Hyundai Steel’s future, considering the financial and execution risks involved.



Read more at Yahoo Finance: Hyundai Steel unveils US factory plan, shares skid