South Korea’s Hyundai, Posco agree to cooperate on US steel plant

SEOUL (Reuters) -South Korea’s Hyundai Motor (OTC:HYMTF) Group said on Monday that it has signed a memorandum of understanding with Posco Holdings for cooperation on its planned U.S. steel plant.

Posco will make an equity investment in Hyundai Motor Group’s steel factory project in Louisiana, the group said in a press release.

The steelmaker was also considering selling some of the steel to be produced from the factory. Production is slated to begin in 2029.

The South Korean automaker announced plans to invest $21 billion in the United States with President Donald Trump at the White House last month.

In a regulatory filing, Hyundai Steel (KS:004020) said it would invest $5.8 billion along with Hyundai Motor Group to build a steel plant in Louisiana with an annual capacity of 2.7 million tonnes.

Trump slapped 25% tariffs on South Korea this month, which were later suspended for three months.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Should you invest $2,000 in PKX right now?

ProPicks AI are 6 model portfolios created by Investing.com which identify the best stocks for investors to buy now. The stocks that made the cut could produce monster returns in the coming years. Is PKX one of them?

Unlock ProPicks AI to find out