South Korean steelmaker Hyundai Steel announced a major capital increase for its U.S. subsidiary Hyundai-POSCO Louisiana LLC.
The capital increase is intended to finance the construction of an integrated electric arc furnace (EAF) steel plant in Ascension Parish, Louisiana. The company said the purpose of the capital increase is to support the development, financing and operation of the DRP-EAF integrated steel mill in Louisiana.
Facility investment of $4.27 trillion. KRW
According to the statement, the total capital gain is KRW 4.27 billion (approximately $2.9 billion). The funds are fully classified as facility investment capital and will be used exclusively for the construction of EAF's steelmaking complex in the United States. The new facility will have an annual capacity of 2.7 million tons.
The investment period for the project is specified from 2026 to the first quarter of 2029, with capital contributions to be paid in installments during the construction phase.
The final shareholding ratios of the third-party companies listed below will be as follows:
- Hyundai Steel USA Corp - 50 percent,
- Hyundai Motor America - 15 percent,
- Kia America, Inc. - 15 percent,
- POS-Louisiana Inc. - 20 percent.
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