South Korea's Hyundai Motor Group (005380.KS) revealed a $21 billion investment in the United States during an announcement with President Donald Trump at the White House on Monday. The investment involves a new $5.8 billion Hyundai Steel (004020.KS), opening a new tab facility in Louisiana that will generate over 2.7 million metric tons of steel yearly, resulting in over 1,400 job opportunities, per a Reuters report.
The steel factory is anticipated to provide steel to automobile factories in Alabama and Georgia. Hyundai intends to invest $9 billion by 2028 to enhance U.S. production capacity to 1.2 million vehicles in the country and $6 billion to strengthen strategic collaborations with U.S. firms in autonomous driving, robotics, artificial intelligence, and advanced air mobility, stated the company.
Hyundai invests $21B in US.
On Wednesday, Hyundai Motor is all set to host an inauguration event for its new $7.59 billion automotive and battery manufacturing facility in Georgia. The car manufacturer operates a facility in Alabama, whereas its partner Kia (000270.KS) has recently established a factory in Georgia. The two existing plants can manufacture 700,000 vehicles annually, while the new facility in Georgia will reach a production capacity of 300,000 vehicles once it is fully operational.
In October, Louisiana Governor Jeff Landry held discussions with Hyundai regarding the investment strategy during his visit to South Korea. "Funds are flowing in. We intend to maintain it that way," stated Trump. The South Korean car manufacturer also announced plans to purchase $3 billion worth of LNG sourced from the United States. Several companies have declared intended investments after Trump's return to the White House, although some of these announcements have featured plans that were previously disclosed.
ALSO READ: China Touts Business Potential To US Companies Despite 'Rising Instability'
In 2022, Hyundai announced it plans to invest roughly $10 billion in the United States by 2025. The declaration arrives as Trump warns of imposing reciprocal tariffs on several nations on April 2, possibly focusing on South Korea, which has a significant trade surplus with the United States.
"This investment clearly shows that tariffs are highly effective," stated Trump on Monday, noting that additional tariffs on automobiles are expected to be revealed this week. Trump has already implemented tariffs to enhance protection for American steel and aluminium manufacturers. He reinstated worldwide tariffs of 25 per cent on all metal imports, broadening the duties to encompass numerous downstream items produced from these metals, including nuts and bolts as well as bulldozer blades and soda cans.
Car manufacturers have been urging the White House to refrain from implementing substantial new tariffs on imported vehicles and components. GM CEO Mary Barra met with Trump earlier this month and expressed that the automaker aims to invest $60 billion in the United States but voiced worries about the unpredictability of tariff policies.
FIRST Business Portal addressing the potential of business capability of North East Region.
