South Korea’s Hyundai Steel said that it will raise US$2.9 billion through its subsidiary Hyundai-POSCO Louisiana LLC to support the construction of a new steel plant in Louisiana, USA.

This investment is part of a joint strategy by Hyundai Steel and its parent company, Hyundai Motor Group. The new plant in Louisiana is planned to have an annual capacity of 2.7 million tons. Hyundai Steel will work closely with POSCO Holdings, which already signed an MoU with them to help keep the project on track.

This move shows Hyundai Motor Group’s goal to strengthen its supply chain in North America, improve steel supply for the local auto and industrial sectors, and reinforce its position in key global markets.