Posco Holdings is seeking to invest in the steel plant project built by Hyundai Steel in the United States

Posco Holdings and Hyundai Steel have always been rivals. Since the construction of a blast furnace in 2004, Hyundai Steel has become the second integrated steel plant with a long process in South Korea, and the competition between the two sides has further intensified. Nowadays, the United States has increased tariffs on steel imports and imposed stricter steel trade regulations, prompting the two enterprises to consider cooperating in overseas markets. Building steel mills in the United States is one of the solutions to deal with the rising tariffs, but the cost is too high. The joint investment by POSCO Holding and Hyundai Steel may achieve a win-win situation - POSCO Holding can enter the US market without local steel mills, while Hyundai Steel can also reduce its financial burden.

Posco Holding Group is in talks with Hyundai Motor Group to explore the opportunity of investing in the steel plant project that Hyundai Steel is building in the United States. Hyundai Motor Group previously announced plans to invest 8.5 trillion won (approximately 5.9 billion US dollars) to build Hyundai Steel's first overseas factory in Louisiana, the United States, which is scheduled to go into production in 2029. Recently, Hyundai Motor Group stated that it will raise approximately half of the funds for the factory construction project through equity investments from Hyundai Motor subsidiaries and external investors, and the remaining funds will be obtained through debt financing.

It is understood that POSCO Holding Group has proposed that after completing the investment, it will use the production lines of Hyundai Steel's factories in the United States to produce POSCO Holding's steel products and supply them to American automotive customers. Regarding this point, Hyundai Iron & Steel is somewhat hesitant. In addition, other steel enterprises, including ArcelorMittal, are also interested in investing in Hyundai Steel to establish steel plant projects in the United States.

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