South Korean auto giant Hyundai plans to build a multibillion-dollar steel mill in Ascension Parish to supply U.S. Hyundai and Kia car assembly plants, creating about 1,300 full-time jobs. The report said the project presents significant potential economic development opportunities for South Louisiana. Sources familiar with the project.
Hyundai and Louisiana officials agreed on tax and other incentives in December, and Hyundai could break ground as early as 2026, one of the people said. The project will require approval from state and local regulators. If approved, it could be operational by 2029, according to people familiar with the project.
The new facility will be built on hundreds of acres of sugar cane fields near Donaldsonville, about 30 miles south of Baton Rouge. The land was rezoned for industrial use by the diocese several years ago and is part of an industrial “megapark” that state and local economic development officials have promoted to companies seeking land for new chemical plants and manufacturing plants.
Hyundai will spend more than $6 billion on the natural gas-fired facility, which is expected to create hundreds of construction jobs in addition to permanent jobs, officials said.
It’s unclear when the company will announce the project. Gov. Jeff Landry declined to comment on the project. Several Ascension Parish officials also declined to discuss the agreement.
Hyundai did not respond to a request for comment. South Korea’s economic newspaper, Korea Economic Newspaper, reported on Tuesday that Hyundai Motors is considering a new steel plant in Louisiana. The company told the newspaper: “We are considering investing in the United States, but nothing has been decided regarding that.”
The steel mill marks a major economic development victory for Landry in the first year of his first term. Landry says he wants to usher in a new industrial era for Louisiana by lowering corporate taxes and streamlining regulations that will make it easier to do business in Louisiana. In early December, Landry announced a deal with Facebook’s parent company, Meta, which said it plans to build a $10 billion data center in northern Louisiana that will create up to 500 permanent jobs.
Last month, eight Bitcoin mining companies announced plans to build a $2.5 billion data center in West Feliciana Parish, which they say will also create hundreds of jobs.
The deal with Hyundai has been in the works for the past year. In October, Landry traveled to South Korea to meet with Hyundai Motor Company officials. Among the visitors were Louisiana Economic Development Secretary Susan Bourgeois, as well as Parish President Clint Coinment, Parish Chief Administrative Officer Ruth Phillips, Sheriff Bobby Webre, and State Sen. Eddie Lambert (R). , Gonzalez), and several Ascension Parish employees.
Benefits and incentives
The plant will be built by Hyundai Motor Group, which also owns Kia Motors, and will be the company’s first steel mill in the United States. Once completed, the project will supply steel sheets for more than 600,000 vehicles at the company’s two U.S. auto plants. According to officials, it is produced every year.
Hyundai has a factory in Montgomery, Alabama. Kia has a factory in West Point, Georgia.
STAFF FILE PHOTO BY THOM SCOTT Bayou Steel Co., a small scrap-based steel mill in LaPlace, is recovering from a three-year strike with the local steelworkers union. Photo taken in December 1997.
The company’s potential investment comes as President-elect Donald Trump prepares to take office and threatens to impose tough new tariffs on imported goods. Producing steel instead of importing it could protect Hyundai from tariffs and save on transportation and logistics costs.
Hyundai was attracted to the south Louisiana site for several reasons, according to people familiar with the deal. The state has cheap natural gas and electricity, both of which are used to power power plants. This industrial site also has easy access to Louisiana Highway 1, which connects to shipping, rail, and Interstate 10.
To make the deal more attractive, Louisiana Economic Development offered Hyundai several incentives, including long-term tax breaks and rebates, in exchange for creating new jobs, the people said. LED did not disclose the conditions, if any, presented.
The company also qualifies for parish property tax relief under the state’s Industrial Tax Exemption Program.
It’s been a while
For the past decade, Ascension Parish has focused on making the West Bank, home to thousands of acres of sugar cane, an attractive area for industry. In 2015, the parish created an industrial overlay district utilizing more than 17,000 acres of contiguous farmland and nine miles of river frontage.
In 2022, a special economic development zone was created to ensure that tax revenues generated within the zone are used for infrastructure projects. Much of the land within the district being marketed as the Riverplex Megapark is still privately owned by families who have grown sugar cane there for generations, but more than 75% of landowners announced their future plans several years ago. agreed to cooperate with developers.
Hyundai has identified several sites in the area where it is interested in acquiring a steel mill, but the purchase has not yet been finalized, two people familiar with the deal said.
In addition to purchasing the land, the company must obtain permits from state and local regulators before moving forward with the project, the people said.
A proposed new industrial project in nearby West St. James Parish, with its potential impact on people living in front-line communities, has prompted environmental groups and the Bucket Brigade and Rise St.・It has caused considerable backlash from local activists such as James.
No major new projects have been proposed for West Ascension, so it’s unclear whether it will generate similar opposition.
(Editor’s note: This article has been updated to correct the date of the meta announcement, which was in early December.)
