Hyundai Steel and Fives Group have confirmed a major contract for the design and supply of advanced coil finishing lines for automotive steel applications.
The agreement, originally signed in December 2025, was officially announced during the state visit of Emmanuel Macron to South Korea, underlining the strategic importance of the project for international industrial cooperation.
The contract supports the construction of a new flat steel mill in the United States by Hyundai-POSCO Louisiana Steel, with an annual production capacity of 2.7 million tonnes. The project is seen as a key step in strengthening industrial ties between South Korea, France and the United States.
Low-carbon steel production in focus
The new facility, backed by an investment of approximately $5.82 billion, is designed to produce 650,000 tonnes of hot-rolled coil and 2.05 million tonnes of cold-rolled coil per year. Around 70% of output – equivalent to 1.8 million tonnes annually – will be dedicated to automotive steel.
Based on a direct reduction and electric arc furnace (EAF) route, the plant is expected to deliver high-quality, low-carbon steel products. Compared with conventional blast furnace production, emissions are projected to be reduced by around 70%.
The project aims to establish a resilient U.S.-based supply chain for advanced automotive steel, supporting growing demand from global car manufacturers and strengthening steel distribution across North America.
Advanced processing technologies
Fives Group will contribute its expertise in coil processing technologies, building on recent project experience in the United States, Mexico and China.
Frédéric Sanchez, Chairman and CEO of Fives Group, described the project as a key step in advancing automotive steel production in the United States and highlighted the long-standing partnership with Hyundai Steel and POSCO.
Guillaume Mehlman, President for the Process Industries at Fives Group, emphasized that the contract reflects strong confidence in the company’s technologies and underlined its strategic importance for the group.
The project marks a significant investment in next-generation steel production and reinforces the shift toward low-emission manufacturing in the global automotive supply chain.
