Newscasts - Hyundai Steel unveils US factory plan, shares skid

HYUNDAI STEEL

25/03/2025 10:45

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Source: 'Reuters - Business videos'

Description: South Korea's Hyundai Steel will invest $5.8 billion along with Hyundai Motor Group to build a steel plant in the U.S. state of Louisiana with an annual capacity of 2.7 million tonnes, the company said in a regulatory filing on Tuesday. Ciara Lee reports.

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Video Transcript:

South Korea's Hyundai Steel will invest $5.8 billion along with Hyundai Motor Group to build a steel plant in the US State of Louisiana. The company says it will have an annual capacity of 2.7 million tons. Hyundai Steel shares initially jumped more than 5% on the news but reversed early gains to end 7% lower as US President Donald Trump praised the company's plan. Hyundai Steel's proposed new US steel plant is part of Hyundai Motor Group's plan to invest $21 billion in the US. The move is seen as an effort by Hyundai to shield itself from US tariffs on steel and cars, but it's not clear whether this will help secure exemptions for Hyundai and South Korea. Trump has threatened to impose reciprocal tariffs on numerous countries on April 2 and potentially targeting South Korea that has a large trade surplus with the US. Shares in Hyundai Motor and affiliate Kia, which are expected to source steel from the proposed factory rallied. Hyundai Motor shares ended up 3.3% and Kia closed up 2.1%. Analysts though, have expressed concerns about how Hyundai Steel, which has billions of dollars of debt, would fund the construction of the factory.