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Hyundai Motor Group has made a groundbreaking decision to invest $5.8 billion in a new manufacturing facility in Louisiana. This first-of-its-kind site marks Hyundai’s inaugural North American steel facility, establishing a fully integrated, made-in-America supply chain to support its automotive manufacturing operations across the United States.

The ultra-low carbon steel production plant will be located on approximately 1,700 acres in Donaldsonville, Louisiana, anchoring the RiverPlex MegaPark on the Westbank of the Mississippi River in Ascension Parish. At approximately 17,000 acres, RiverPlex is the largest undeveloped tract along the deep-water Mississippi River. Hyundai Steel Company (HSC), a member of Hyundai Motor Group, is expected to create more than 1,300 direct new jobs with an average salary of $95,000. Louisiana Economic Development estimates the project will result in about 4,100 indirect new jobs, for a total of 5,400 potential new jobs in the Capital Region.

“Hyundai’s decision to invest nearly $6 billion in Ascension Parish speaks volumes about Louisiana’s skilled workforce, robust infrastructure and our ability to compete for innovative manufacturing facilities,” Louisiana Governor Jeff Landry said. “This announcement makes clear that Louisiana’s manufacturing sector is roaring back, thanks to our historic tax reforms, our business-friendly approach and the many competitive advantages our state has to offer international powerhouses like Hyundai.”

HSC plans to import an estimated 3.6 million tons of iron ore annually to the facility. Completed coils will be shipped out via rail and truck to customers, including Hyundai Motor Company, Kia, and U.S. automakers. The largest portion of steel manufactured in Louisiana will be sent to Hyundai Motor Company’s vehicle manufacturing plants throughout the U.S. The mill is expected to produce 2.7 million metric tons of steel annually.

The state-of-the-art electric arc furnace (EAF) steel mill is expected to produce 70% lower emissions than traditional blast furnaces, aligning with the Hyundai Motor Group’s mission to..Read More

Increased government infrastructure spending is bolstering companies in the Zacks Building Products - Miscellaneous industry. Although potential challenges like macroeconomic uncertainties, high rates, low consumer confidence, new product investments, and rising raw material costs could squeeze margins, firms such as Advanced Drainage Systems, Inc. WMS, Armstrong World Industries, Inc. AWI, Frontdoor, Inc. FTDR, Construction Partners, Inc. ROAD and Latham Group, Inc. SWIM stand to gain from operational excellence, geographic and product diversification strategies, strategic acquisitions, and higher infrastructure investments.

Industry Description

The Zacks Building Products - Miscellaneous industry primarily comprises manufacturers, designers and distributors of home improvement and building products like ceiling systems, doors, windows, flooring and metal products. Some industry players provide solutions to rehabilitate the aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. The companies also manufacture expansion joints and structural bearings, ventilation products, ground-mounted solar racking and commercial greenhouses, as well as mail storage (solutions including mailboxes along with package delivery products). Companies in this industrial cohort also rent out equipment to a diverse customer base, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities.

3 Trends Shaping the Future of the Building Products Industry

U.S. Administration’s Infrastructural Spending: The industry players are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. The U.S. administration’s endeavor to rebuild the nation’s deteriorating roads and bridges and fund new climate-resilient and broadband initiatives is expected to aid the companies. Meanwhile, as the industry players’ business prospects are highly correlated with U.S. housing market conditions, improving residential construction markets are expected to drive growth. Builders are now cautiously optimistic for 2024 as the lack of existing inventory is shifting demand to the new home market, thereby driving the demand for companies’ products in the industry.. Read More

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