Hyundai Steel is considering building a plant in the United States

South Korea’s Hyundai Steel, a subsidiary of automakers Hyundai Motor and Kia, is actively considering building a steel plant in the United States, Reuters reports.

The company is weighing investments in a facility in the southeastern United States that will use electric arc furnaces.

The plans come amid expectations that U.S. President Donald Trump will step up protectionist trade policies, including a potential 25% tariff on imports from Mexico and Canada starting February 1. He also promised tariffs for the EU and said that his administration is discussing a 10 percent punitive duty on Chinese exports.

Hyundai Motor and Kia produce cars at plants in Alabama and Georgia (USA), as well as in Monterrey (Mexico). Potentially, the new plant could supply flat steel products to these North American operations.

A Hyundai Motor executive mentioned the plant construction project in the company’s January earnings report. Later, in comments to the press, Hyundai and Hyundai Steel confirmed that the option was being considered.

As GMK Center reported earlier, in the summer of 2024, it was reported that Hyundai Steel was expanding its low-carbon plate sales base in international markets such as Europe and America in response to global demand for carbon neutrality and CBAM. In particular, last year the company signed memorandums of understanding with Czech auto parts manufacturer Tawesco, Italian Euside and German Kirchhoff Automotive.