Fives & Hyundai Steel advance U.S. automotive steel production

Automotive manufacturing and steel processing industries are increasingly adopting low-carbon production routes while maintaining stringent material quality requirements. In this context, Hyundai Steel and Fives Group have signed a contract for the design and supply of advanced coil finishing lines for a new automotive steel production facility in the United States.

Integration into a low-carbon steel production facility
The contract supports the construction of a flat steel mill developed by Hyundai-POSCO Louisiana Steel, with a total annual production capacity of 2.7 million tonnes. The facility is designed to produce 650,000 tonnes of hot-rolled coil and 2.05 million tonnes of cold-rolled coil per year, with approximately 70% of output dedicated to automotive applications.

The plant will operate using a direct reduction plant-electric arc furnace (EAF) route, enabling the production of steel with reduced carbon intensity compared to conventional blast furnace processes. This configuration is expected to achieve around 70% lower CO₂ emissions, aligning with evolving environmental requirements in automotive supply chains.

Role of coil finishing lines in automotive steel production
Coil finishing lines are critical in determining the final mechanical properties, surface quality, and dimensional accuracy of steel products used in automotive manufacturing. The systems supplied by Fives Group are designed to process both hot-rolled and cold-rolled coils, ensuring compliance with specifications required for structural and body-in-white components.

These processing lines typically include operations such as pickling, cold rolling, annealing, and surface treatment, which are essential for achieving the strength, formability, and surface finish demanded by modern vehicle production.

Industrial cooperation and project context
The agreement was formalised in December 2025 and publicly announced during the state visit of Emmanuel Macron to South Korea on April 3, 2026. The project reflects broader industrial collaboration between South Korea, France, and the United States in the development of advanced manufacturing infrastructure.

According to Fives Group, the contract builds on prior project experience across the United States, Mexico, and China, particularly in delivering coil processing technologies for high-performance steel applications.

Applications and supply chain implications
The facility is intended to support growing demand for advanced automotive steel in North America, particularly for lightweight vehicle structures and electric vehicle platforms, where material performance and sustainability are key selection criteria.

By establishing a U.S.-based production site, the project contributes to a more localised supply chain, reducing dependency on imports while enabling faster delivery and integration with automotive manufacturing operations.

The use of EAF-based production combined with advanced finishing technologies also positions the facility to meet both regulatory and industry-driven targets for emissions reduction, without compromising on the mechanical and surface properties required for automotive-grade steel.

Edited by Natania Lyngdoh, Induportals Editor — Adapted by AI.

www.fivesgroup.com