Investing.com -- On Monday, South Korean industrial giant Hyundai (KS:005380) is set to unveil a significant $20 billion investment in the United States, which includes the construction of a new $5 billion steel plant in Louisiana, CNBC reported citing people familiar with the matter. This move is part of the company's strategy to onshore operations and is expected to create approximately 1,500 jobs. The state-of-the-art facility will focus on producing advanced steel for Hyundai's two American automobile factories, which are gearing up to manufacture electric vehicles.
The announcement is set to take place at the White House, with President Donald Trump, Hyundai Chairman Euisun Chung, and Louisiana Governor Jeff Landry presiding over the event. This investment underscores Hyundai's commitment to expanding its U.S. manufacturing footprint and comes at a critical time as global conglomerates seek to navigate the complexities of international trade.
Hyundai's decision is in response to the looming April 2 tariff deadline imposed by the Trump administration. The company aims to mitigate potential trade disputes and tariffs that could affect its operations. Hyundai is not alone in this approach; other major international firms, such as Taiwan Semiconductor Manufacturing Co. and Japan's SoftBank (TYO:9984), have also recently announced substantial onshoring plans in the U.S. These announcements were made following visits to the White House over the past two months, highlighting a trend among foreign companies to bolster their American presence.
The new steel plant in Louisiana represents a strategic investment by Hyundai to ensure a reliable supply of advanced materials for its electric vehicle production. By producing next-generation steel domestically, Hyundai aims to enhance its competitiveness in the rapidly growing electric vehicle market. The investment is also a significant economic boost for Louisiana, providing new job opportunities and contributing to the state's industrial development.
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