KEY POINTS
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Hyundai Steel Company is about to break ground on a $5.8 billion steel plant in Donaldsonville, Louisiana.
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The groundbreaking comes as steel mill prices have seen significant year-over-year inflation.
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The megaproject joins another major manufacturing project in Ascension Parrish, pushing the region to plan for growth alongside the capital investment.
Hyundai Steel Company (HSC) is nearing groundbreaking on a $5.8 billion steel plant in Ascension Parish, Louisiana, just south of Baton Rouge, the largest economic development project since the Greater Baton Rouge Economic Partnership was formed in 2005.
The development, about sixty miles west of New Orleans, will sit on roughly 1,800 acres in Donaldsonville, Louisiana, according to Louisiana Economic Development (LED).
What are the Project Details?
Groundbreaking is planned for September 4, with the plant expected to become operational in 2029. Once completed, the project will create 1,300 new, direct jobs with an average salary of $95,000, plus a projected 4,100 indirect jobs.
The project is breaking ground as steel mill product costs climb nationally. Energy and shipping disruption from the conflict in the Middle East, along with targeted steel tariffs on trade partners, are driving much of that increase, pushing costs up 22.5% year-over-year, according to the Bureau of Labor Statistics.
While it will take years for the plant to come online, added domestic supply could help ease some of the price and availability pressure facing steel buyers.
The mill plans to use state-of-the-art electric arc furnaces, which produce 70% lower emissions than traditional blast furnaces, according to LED. The furnaces are estimated to produce 2.7 million metric tons of steel annually while importing 3.6 million metric tons of iron ore.
Hyundai plans to ship the steel by rail and truck to customers, mainly its own automobile manufacturing plants across the country, though the project's website also notes a partnership with Kia.
Are There Any Plans for Related Projects?
The Ascension Parish area has been a hotbed of recent activity, including the HSC steel plant megaproject.
Beyond the mill, HSC plans to partner with the Port of South Louisiana to build a deep-water dock to accommodate steel and material shipments.
Another megaproject, CF Industries' Project Blue Point blue ammonia plant, reportedly just broke ground in the parish as well. With both manufacturing projects underway, the city of Donaldsonville is reportedly anticipating growth and planning to guide development, according to the Gonzales Weekly Citizen.
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