Hyundai, Trump announce $28 billion US investment, new steel plant
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Hyundai Motor Group executive chairman Euisun Chung delivering remarks, alongside US President Donald Trump, US House of Representatives Speaker Mike Johnson and Governor of Louisiana Jeff Landry, at the White House.
PHOTO: REUTERS
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WASHINGTON/SEOUL - South Korea’s Hyundai Motor Group announced a US$21 billion (S$28 billion) investment in the United States with President Donald Trump at the White House on March 24.
The investment includes a new US$5.8 billion Hyundai Steel plant in Louisiana that will produce over 2.7 million tonnes of steel annually, creating more than 1,400 jobs. The steel plant is expected to supply steel to auto plants in Alabama and Georgia.
Of the total, Hyundai also plans to invest US$9 billion by 2028 to boost US production capacity to 1.2 million vehicles in the US and US$6 billion to expand strategic partnerships with US companies in autonomous driving, robotics, artificial intelligence, and advanced air mobility, the company said.
Hyundai Motor plans to hold an opening ceremony for its new US$7.59 billion car and battery factory in Georgia on March 26.
The automaker has a factory in Alabama, while its affiliate Kia has a plant in Georgia.
The two older plants can produce 700,000 vehicles a year, and the new Georgia plant will have a 300,000-vehicle production capacity when fully operational.
Louisiana Governor Jeff Landry had travelled to South Korea in October and met with Hyundai to discuss the investment plan.
“Money is pouring in. We want to keep it that way,” Mr Trump said.
The South Korean automaker also said that it would buy US$3 billion of liquefied natural gas produced in the US.
Numerous companies have announced planned investments following Mr Trump’s return to the White House, though some of those statements have included previously announced plans.
Hyundai in 2022 said it would invest about US$10 billion through 2025 in the US.
The announcement comes as Mr Trump threatens to impose reciprocal tariffs
“This investment is a clear demonstration that tariffs very strongly work,” Mr Trump said on March 24, adding that more tariffs on vehicles are likely to be announced this week.
Mr Trump has already introduced tariffs to boost protection for US steel and aluminium producers.
He reimposed global tariffs of 25 per cent on all imports of the metals and extended the duties to hundreds of downstream products made from the metals, from nuts and bolts to bulldozer blades and soda cans.
Automakers have been heavily lobbying the White House to not impose massive new tariffs on imported autos and parts.
GM chief executive Mary Barra met with Mr Trump earlier in March and told him the automaker wants to invest US$60 billion in the US, but raised concerns about uncertainty over tariff policies. REUTERS
