Federal and state officials in the United States welcomed the decision by Hyundai Steel (004020) and POSCO to build their first integrated steel mill in the country, calling the project a milestone as Washington works to rebuild its manufacturing base. One official said a country that cannot produce steel cannot be a great power.
Louisiana Gov. Jeff Landry, speaking on the 4th at the groundbreaking ceremony for the Hyundai Steel-POSCO Louisiana electric arc furnace steel mill, known as HPLS, said he had watched manufacturing leave the United States. The first thing the Donald Trump administration pursued was bringing manufacturing back to the United States, he said.
"This is about creating high-wage jobs in America and creating new opportunities in Louisiana in particular," he said, adding that steel is the core and the foundation of U.S. manufacturing. Expanding domestic steel capacity is needed to ensure a stable supply of materials for major manufacturing industries including autos, machinery and construction, he said.
That is why the Louisiana mill is seen as aligning with the U.S. push to rebuild manufacturing. The United States is a major steel producer but cannot meet demand from domestic output alone. Its crude steel production last year was 82 million tons, according to the World Steel Association, and the country imports more than 20 million tons of steel annually.
The U.S. Commerce Department also praised the investment by Hyundai Steel and POSCO. William Kimmitt, under secretary of commerce for international trade, said the same day that a country that cannot produce steel cannot be a great power and cannot build a strong auto industry. Countries should not depend on others for the basic materials that underpin key industries, he said.
Policy alone cannot build a steel mill, Kimmitt said, adding that companies with the actual ability to invest are needed. Hyundai Steel and POSCO are the companies taking on exactly that role, he said.
