Steel Rising: Hyundai’s $5.8 Billion Investment Transforms Louisiana’s Industrial Landscape

Jun 02, 2025

By The Bayou Insider Staff

In one of the most transformative economic announcements in recent state history, Hyundai Motor Group has committed to investing $5.8 billion to build a cutting-edge steel manufacturing facility in Ascension Parish, Louisiana. The facility will be Hyundai’s first North American steel plant and a cornerstone of the company’s broader U.S. investment strategy.

This bold initiative not only places Louisiana at the forefront of advanced manufacturing—it also promises to reshape the regional economy, generate thousands of jobs, and solidify the state’s role in the global automotive supply chain.

🔧 The Site: A Strategic Bet on the RiverPlex MegaPark

The facility will be constructed on 1,700 acres in the RiverPlex MegaPark, a massive industrial zone located along the Mississippi River’s deepwater corridor in Donaldsonville. This location was no accident.

“The RiverPlex site gives Hyundai everything it needs—access to global shipping lanes, strong infrastructure, and a skilled workforce ready to be mobilized,” said Louisiana Economic Development Secretary Susan Bonnett Bourgeois.

The area’s proximity to rail lines, interstates, and ports makes it ideal for industrial development. It also showcases Louisiana’s long-term vision of revitalizing legacy infrastructure to attract modern manufacturing giants.

🏭 Green Steel for a New Generation

Hyundai’s Louisiana plant will use Electric Arc Furnace (EAF) technology—a cleaner, more energy-efficient method of steel production. Unlike traditional blast furnaces that rely heavily on coal, EAFs use recycled scrap steel and electricity to create ultra-low carbon steel.

The plant will produce 2.7 million metric tons of steel annually, primarily for use in Hyundai and Kia’s U.S. auto manufacturing facilities. This helps Hyundai insulate its supply chain from rising global steel costs and trade disruptions.

“This is not just a steel mill—it’s a critical piece of a sustainable supply network for the future of mobility,” said Hyundai Steel CEO Jae-hoon Kim in a company statement.

💼 Jobs, Training, and Economic Impact

The announcement brings with it a wave of opportunity:

1,300 direct jobs with an average salary of $95,000
4,100 indirect jobs, from suppliers to service and logistics sectors
5,400+ total jobs projected in the greater Capital Region

To prepare for this influx of high-paying roles, the Louisiana Community and Technical College System (LCTCS) and River Parishes Community College will develop a workforce training program tailored to Hyundai’s operational needs.

“We’re not just building steel—we’re building futures,” said Dr. Quintin Taylor, spokesperson for LCTCS. “Our young people deserve access to careers that matter, and this project delivers.”

⚓ Port Infrastructure: Importing Ore, Exporting Strength

In partnership with the Port of South Louisiana, Hyundai will also build a deep-water dock to:

Import over 3.6 million tons of iron ore each year
Export finished steel products to Hyundai’s EV and car manufacturing plants across the U.S.

This infrastructure enhancement adds capacity to one of the nation’s busiest ports by tonnage and reaffirms Louisiana’s role as a logistical powerhouse in the Gulf South.

🤝 Global Partners, Local Growth

Hyundai signed a memorandum of understanding with POSCO Holdings, another South Korean industrial leader, which will:

Invest in the new plant
Purchase a portion of the steel produced
Cooperate on developing new low-carbon steel technologies

This deepens economic ties between South Korea and Louisiana, opening the door for more foreign direct investment.

Meanwhile, Governor Jeff Landry emphasized the strategic importance of this project during a press conference:

“This investment is a victory for Louisiana workers, families, and industry. It’s a signal to the world that we are open for business, and we’re serious about bringing high-paying, future-proof jobs to this state.”

🌍 Part of a $21 Billion U.S. Strategy

The Louisiana steel facility is a pillar of Hyundai’s $21 billion U.S. investment plan (2025–2028). This includes:

A $7.6 billion EV plant under construction in Georgia
New battery and parts factories across the South
Expanded R&D and design capabilities in California

Hyundai’s U.S. strategy is a response to ongoing trade tensions, EV tax credit requirements under the Inflation Reduction Act, and the need to localize production.

📍 Conclusion: A Turning Point for Louisiana’s Industrial Future

Hyundai’s $5.8 billion commitment is more than a single project—it’s a signal that Louisiana is once again becoming a hub for American industry. It represents a fusion of innovation, economic development, and sustainability that could set the tone for future global partnerships.

As groundbreaking approaches, the eyes of the nation—and the world—are watching Louisiana.

✅ Call to Action

Stay with The Bayou Insider as we track Hyundai’s steel plant from concept to completion. We’ll bring you exclusive updates, behind-the-scenes features, and community voices as this transformative project unfolds.