Signed in December 2025, the contract was officially announced on 3 April 2026 during French President Emmanuel Macron’s state visit to South Korea, in the presence of a delegation of French business leaders.
The agreement supports the constrution of a new flat steel mill in the United States by Hyundai-POSCO Louisiana Steel, which will have an annual production capacity of 2.7 million tonnes. This project is a significant milestone in strengthening industrial cooperation between South Korea, France and the United States.
New low-carbon steel facility
The new facility, which has received an estimated investment of $5.82 billion, will produce 650,000 tonnes of hot-rolled coil and 2.05 million tonnes of cold-rolled coil each year. Using a direct reduction plant-electric arc furnace process, the mill will produce high-quality, low-carbon steel products. Around 70% of the total output — equivalent to 1.8 million tonnes per year — will be dedicated to automotive steel applications.
As the world’s first fully electric arc furnace (EAF) integrated steel mill dedicated to automotive steel production, this facility will manufacture products with approximately 70% lower CO₂ emissions than those produced using traditional blast furnaces.
The aim of this project is to establish a robust US-based supply chain for advanced automotive steel. This will address the increasing demand from global car manufacturers and support the expansion of commercial-grade steel distribution across North America.
Advanced steel processing technologies
Fives Group has extensive expertise in coil processing technologies and has recently delivered successful projects across the United States, Mexico and China.
“We are proud to support Hyundai Steel and POSCO in this landmark investment, which will play a key role in advancing automotive steel production in the United States. We are confident the cooperation between our companies will further grow and strengthen through this new project in the United States”,
says Frédéric Sanchez, Chairman & Chief Executive Officer of Fives Group.
“This contract represents a major milestone for Fives Group and reflects the strong trust placed in our technologies by our long-standing partners, Hyundai Steel and POSCO. Given its strategic importance to Fives Group, we are fully committed to the successful implementation of this project,”
adds Guillaume Mehlman, President for the Process Industries and Deputy General Manager of Fives Group.
(Source: fives group)
