By Joyce Lee and Heekyong Yang
SEOUL, Jan 26 (Reuters) – South Korea’s Hyundai Steel said in a regulatory filing on Monday its affiliate Hyundai-POSCO Louisiana LLC plans a capital increase worth $2.9 billion for facilities investment in a US steel plant.
The move follows Hyundai Steel’s announcement last year it and its parent Hyundai Motor Group would invest to build a steel plant in Louisiana, United States with an annual capacity of 2.7 million tonnes.
Hyundai Motor Group had also signed a memorandum of understanding with South Korean steelmaker Posco Holdings for cooperation on its planned US steel plant.
Hyundai-POSCO Louisiana LLC is an U.S.-based subsidiary of Hyundai Steel USA, which is wholly owned by Hyundai Steel.
Hyundai Steel said it plans to finance the total investment of $5.8 billion with $2.9 billion in equity and $2.9 billion in external borrowing, meaning that the equity ownership will comprise Hyundai Steel USA Corp with a 50% stake, POS-Louisiana Inc with 20%, and Hyundai Motor America and Kia America with 15% each.
(Reporting by Joyce Lee and Cynthia Kim, Editing by Louise Heavens)
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