Hyundai to Announce US$20 Billion Investment, New Steel Plant

South Korea’s Hyundai Motor Group to Invest $20 Billion in the US

Washington/Seoul: South Korea’s Hyundai Motor Group is set to announce a $20 billion investment in the US at the White House on Monday (Mar 24), a US official said.

New Steel Plant in Louisiana

The official confirmed the investment would include a $5 billion new steel plant in Louisiana and was expected to be announced by President Donald Trump, Hyundai chairman Euisun Chung, and Louisiana governor Jeff Landry. Landry traveled to South Korea in October and met with Hyundai to discuss the investment plan.

Previous Investments and Tariffs

Numerous companies have announced planned investments following Trump’s return to the White House, though some of those statements have wrapped in previously announced plans. Earlier this month, Hyundai Steel said it was considering building a steel factory in the southeast US but had not made a decision, adding that a hike in US tariffs would have a negative impact on the Korean steel industry.

Unclear if Investment Includes Previous Commitment

Hyundai in 2022 said it would invest about $10 billion through 2025 in the US; it is unclear whether all of that money was spent, or if Monday’s $20 billion includes some portion of that previously announced investment. Hyundai Motor declined to comment. A spokesperson at Hyundai Steel was not immediately available for comment.

Reciprocal Tariffs

The announcement comes as Trump threatens to impose reciprocal tariffs on numerous countries on April 2, potentially targeting countries such as South Korea that have large trade surpluses with the US. Trump has already introduced tariffs to boost protection for US steel and aluminum producers.

Automaker Concerns

Automakers have been heavily lobbying the White House to not impose massive new tariffs on imported autos and parts. GM CEO Mary Barra met with Trump earlier this month and told him the automaker wants to invest $60 billion in the US but raised concerns about uncertainty over tariff policies.

Hyundai Motor’s Investments

Hyundai Motor plans to hold an opening ceremony for its new $7.59 billion car and battery factory in Georgia on Wednesday. The automaker has a factory in Alabama, while its affiliate Kia has a plant in Georgia.

Conclusion

South Korea’s Hyundai Motor Group is set to announce a significant investment in the US, which could have a positive impact on the US economy. However, the investment is also tied to the ongoing trade tensions and the potential imposition of reciprocal tariffs by the US.

FAQs

• What is the size of the investment announced by Hyundai Motor Group?
  The investment is worth $20 billion.
• What is the purpose of the investment?
  The investment will include a $5 billion new steel plant in Louisiana and other unspecified projects.
• Is this the first investment by Hyundai Motor Group in the US?
  No, the company has previously announced plans to invest $10 billion in the US by 2025.
• What are the potential implications of the investment on the US economy?
  The investment could lead to job creation and economic growth in the US.
• What are the concerns about the investment?
  Automakers have raised concerns about the potential imposition of massive new tariffs on imported autos and parts, which could negatively impact their business.