Seoul, Sep 5 — South Korea's industry minister urged the United States on Saturday to ease tariffs on equipment that Korean companies will need to import for a US$5.8 billion steel mill in Louisiana they are investing in.
Industry Minister Kim Jung-kwan made the request at a meeting with Louisiana Gov. Jeff Landry before attending a groundbreaking ceremony for Hyundai-POSCO Louisiana Steel LLC (HPLS), an electric arc furnace-based integrated steel mill scheduled to begin construction in the fourth quarter, the Ministry of Trade, Industry and Resources said in a press release.
HPLS is a joint venture among Hyundai Motor Group affiliates Hyundai Steel Co., Hyundai Motor Co. and Kia Corp., and steelmaker POSCO, reports Yonhap news agency.
Foreign steelmakers in the U.S. face tariffs under Section 232 of the Trade Expansion Act of 1962, which allows the U.S. president to adjust imports deemed to threaten national security, as well as other trade remedy measures, the ministry said.
Kim urged Washington to pay close attention to difficulties facing Korean companies investing in the U.S. and support the project by easing tariffs on equipment and materials that need to be shipped from South Korea.
Kim also stressed the importance of the project, which is expected to strengthen supply chain cooperation between the two countries by combining South Korean steelmaking technology with U.S. industrial and energy infrastructure, the ministry said.
The plant is expected to produce 2.7 million tons of hot-rolled, cold-rolled and galvanized steel annually, making it the first electric arc furnace-based steel mill in the United States dedicated to automotive steel production.
It will use direct reduced iron and electric arc furnaces to cut carbon emissions by about 70 percent compared with conventional blast-furnace production, according to Hyundai Steel.
The plant will supply automotive steel to global automakers' production facilities in the southern U.S. and Mexico, including those operated by Hyundai Motor and Kia.
Hyundai Motor Group Executive Chair Euisun Chung, POSCO Group Chairman Chang In-hwa and South Korean Ambassador to the U.S. Kang Kyung-wha attended the groundbreaking ceremony.
Chung said automotive steel produced at the Louisiana plant would help Hyundai and U.S. automakers develop next-generation mobility solutions.