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Hyundai Steel announces USD 2.9 billion capital increase

South Korea based Hyundai Steel announced that it will proceed with a USD 2.9 billion capital increase as part of its planned steel plant investment in the United States.

Hyundai Steel announces USD 2.9 billion capital increase

In a regulatory filing released on Monday, the company stated that the capital increase will be carried out through its subsidiary, Hyundai POSCO Louisiana LLC, for the steel facility planned to be established in the state of Louisiana.

This investment move follows Hyundai Steel’s announcement last year, together with its parent company Hyundai Motor Group, of plans to build a steel plant in Louisiana with an annual production capacity of 2.7 million tonnes. The project is expected to be implemented in cooperation with South Korean steelmaker Posco Holdings.

It was also recalled that Hyundai Motor Group had previously signed a memorandum of understanding with Posco Holdings for the planned facility. The investment aims to strengthen the company’s presence in the North American market and increase steel supply to the automotive and industrial sectors in the region.

Source: Reuters

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