Danieli jumps as Hyundai picks it for $650 million US plant

Shares in Danieli DANI.MI rise 4.5% after Korean group Hyundai 011760.KS late on Wednesday picked the Italian group as its technological partner for a new green steel production plant to be built in the U.S. state of Louisiana

The Italian iron and steel group will supply four production units with a total value of about $650 million for the contracts

Brokerage Equita deems the order one of the largest orders ever secured by the group and accounts for around 16% of its 2026 order intake estimate for the plant-making division

Equita says the plant is designed for the production of high-performance, low-carbon steel, targeting both the automotive sector and durable consumer goods

"With this project, Hyundai aims to increase its steel production, with a significant share in the United States, strengthening its industrial presence in the North American market and ensuring a supply chain closer to the local automotive sector," Danieli said in the statement

The deal confirms restrictive trade policies in the steel sector are fostering re-shoring of production - Equita

The brokerage points out the high technological content of the project supports its "expectation of above-average margins"