Chung attends HPLS groundbreaking in Louisiana

'Will raise steel technology with Posco cooperation'

'Plan to use HPLS steel in Atlas robot, hope to supply rockets'

Hyundai Motor Group Chairman Euisun Chung speaks with reporters immediately after the HPLS groundbreaking ceremony in Donaldsonville, Louisiana, on Friday (local time). [Hyundai Steel]
Hyundai Motor Group Chairman Euisun Chung speaks with reporters immediately after the HPLS groundbreaking ceremony in Donaldsonville, Louisiana, on Friday (local time). [Hyundai Steel]

Hyundai Motor Group Chairman Euisun Chung said the Hyundai Steel-Posco Louisiana Steel joint venture — known as HPLS — will create "positive synergies for both Korea and the United States," adding that producing high-value steel domestically in the US will help ease chronic supply shortages while raising the quality of vehicles the group manufactures there.

Speaking with reporters immediately after the HPLS groundbreaking ceremony in Donaldsonville, Louisiana, on Friday (local time), Chung said it was significant to have reached the groundbreaking roughly 16 months after the project was announced at the White House last year. "The most important thing now is to complete construction safely and produce good products," he said.

Chung said HPLS would also have a positive effect on the US steel market. "The United States currently imports about 20 million tons of steel, of which about 10 million tons are high-value specialty steel and low-carbon steel," he said. "Because HPLS can produce these products, it will benefit the United States as well."

From Hyundai Motor Group's perspective, he said, locally produced high-quality steel would sharpen the competitiveness of finished vehicles. "We need to produce and use low-carbon steel and high-value steel to improve the quality of the vehicles we make in the United States," Chung said. "I believe there will be positive effects on both sides, creating synergies."

Asked about potential tariff savings, Chung said it was difficult to put a dollar figure on the benefit. "Tariffs keep changing, so rather than fixating on tariffs, we want to focus on producing better products here and improving vehicle quality," he said.

On why Hyundai Motor Group chose to partner with Posco on HPLS, Chung said Posco is one of the world's top steelmakers and has long collaborated with the group across many areas. "We have had in-depth discussions on future steel, next-generation batteries and various other fields," he said. He added that the partnership was a good opportunity for Posco to enter the US market. "If we research together here and produce materials of better quality and higher technological standards, it will be a genuine win-win," he said.

Chung said the decision to use an electric arc furnace rather than a blast furnace came down to carbon reduction. "We chose the electric arc furnace because it can produce low-carbon steel and cut carbon emissions by about 70 percent," he said. "We will also feed in direct reduced iron, which is actually new technology, so it is a challenge." He added that a successful outcome could open the door to applying the technology elsewhere.

However, Chung drew a line at the prospect of building similar steelworks outside the United States. "Right now we have started in Louisiana, so making this a success here is the top priority," he said. "We are not thinking about other regions at this point."

Chung also expressed hope that steel from HPLS would eventually feed into Hyundai Motor Group's future businesses, including robotics. On the humanoid robot Atlas, he said the group was making various attempts to apply fast-moving, advanced technology while reorganizing many internal teams and management structures. "We are also strengthening our organization in actuators and grippers so we do not fall behind competitors," he said.

Asked whether steel produced at HPLS could be used in Atlas, Chung said, "I think it absolutely should be." He added, "Going forward, I hope we can work even harder and eventually supply this steel to rockets like those made by SpaceX."

On whether Atlas could be deployed at the HPLS factory itself, Chung said the group would first run extensive tests and proceed if the results were promising. "Atlas is ultimately about having robots take over tasks that are difficult for humans," he said. "We plan to use robots for dangerous or hard-to-perform work to supplement worker safety."

Hyundai Motor President Jose Munoz said the group planned to apply HPLS steel to as many vehicle models as possible at its US factories. "We have tested steel from Hyundai Steel and Posco for a long time, and the product from HPLS is even more satisfying because it cuts carbon emissions by up to 70 percent," he said.

Munoz added that other automakers had shown strong interest in HPLS. "From an emissions-regulation standpoint, and also because it is steel made in the United States, that will be a factor drawing in other companies," he said.


eyre@heraldcorp.com