Kim Hyung-jin, CEO of the Hyundai Steel-Posco Louisiana Electric Steel Plant (HPLS), projected that the annual revenue from the U.S. facility could reach $4 billion (approximately 5 trillion won) when operating at full capacity. He expressed confidence that the plant could achieve a double-digit operating profit margin within ten years.
During a press conference held on September 3 in Donaldsonville, Louisiana, Kim stated, "If we produce 2.7 million tons and sell the targeted products, we can expect about $4 billion in revenue."
HPLS is Hyundai Steel's first electric steel mill in the U.S., with a production capacity of 2.7 million tons. Hyundai Steel holds a 50% stake, while Posco owns 20%, and Hyundai Motor and Kia each have 15%. The plant is expected to begin mass production in 2029, producing 1.8 million tons of automotive steel and 900,000 tons of general steel annually.
Kim also cautiously shared a long-term goal of achieving a double-digit operating profit margin within ten years. He noted, "The market volatility has increased significantly since COVID-19, making it difficult to predict changes. However, I believe the operating profit margin will be between 10% and 20% in ten years."
More than half of the production volume has already secured a sales foundation. Kim mentioned, "We have confirmed sales of 800,000 tons, with 400,000 tons each for Hyundai Motor and Kia, and Posco has plans for 600,000 tons. I believe we can sell the remaining automotive steel through existing sales channels."
Kim highlighted the carbon reduction production system as HPLS's greatest strength. Unlike traditional blast furnace methods that use coal, HPLS will utilize natural gas and electric arc furnaces, significantly reducing carbon emissions.
He emphasized, "Our biggest advantage is that we can reduce carbon emissions by 70% compared to other automotive steel. As both steel mills and automotive companies aim for sustainability, this will be a significant competitive edge."
Collaboration with key investor Posco is also set to intensify. Kim stated, "We reviewed and collaborated with Posco on all aspects of the project design. Some Posco personnel will also work at HPLS in the future, and we will continue to cooperate." However, the two companies are currently negotiating specific roles, including sales rights for the produced products.
In conclusion, Kim remarked, "HPLS will become the world's first steel mill capable of producing automotive steel with a 70% reduction in carbon emissions. I ask for your warm interest and support for the success stories we will create in the U.S. in the future."
* This article has been translated by AI.
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