Labor unions, community and climate groups demand Hyundai answers on Louisiana steel mill

ASCENSION PARISH, LA -- A coalition of labor unions, community and climate groups have written to the Hyundai CEO asking the company to ensure its proposed $5.8 billion steel mill in Donaldsonville meets strong health and environmental standards, while providing quality jobs.

The letter follows a meeting in the Lemann Memorial Donaldsonville Community Center on Saturday March 28 organized by the coalition for local residents concerned about forced displacement to make way for the plant and the lack of information about the impact of the facility.

Click here for photos from the town hall meeting

Dr. Angelle Bradford Rosenberg, Sierra Club Delta Chapter Chair said: "The town hall meeting on Saturday was clearly needed: residents had a lot of questions about being forced from their homes, about green steel and about plans on carbon capture. They came away more empowered with information on the potential impacts of the facility, their rights and how to organize together as a community. There have been many promises in the past to the people of this region about clean and safe facilities, economic benefits and jobs, but we often don't see these promises pan out, and instead communities are left grappling with health problems and pollution. The Hyundai steel facility can be a real opportunity but only if Hyundai commits to a green facility, and starts to properly communicate with the community on its plans."

Glenn Price, President of the Sunrise Community Group of Donaldsonville said: "Hyundai, don't try to play on our intelligence. We need & want real commitments for clean air, good jobs & economic development. We are not sold on your promises. Put it in writing!"

Larry Burchfield, United Steelworkers District 13 Director said: "As an industrial union with thousands of members living and working in the region, we want to see Hyundai Steel back up its promises of good, family-sustaining local jobs with a binding agreement that provides real transparency for neighboring communities and future workers-not only now, as the company prepares to break ground, but also long after the facility has been built and started production."

The letter to Hyundai CEO José Muñoz states that "Hyundai has not provided assurances that residents of Modeste and Donaldsonville will share equitably in the jobs and opportunities it creates". It also outlines concerns about workers, following high numbers of deaths and injuries at a Hyundai facility in Georgia. "We are also seeking assurances on the standards for workers at the steel plant when it is up and running, that they have the free choice to collectively bargain for fair wages, conditions and a safe workplace," the letter adds.

Hyundai last year announced that the Louisiana facility would be a "low-carbon-emissions steel production" , which will use a direct reduction furnace as opposed to a more polluting coal-based blast furnace. Hyundai has said it plans to transition by 2034 to green hydrogen, a 100% clean method for producing iron which splits water into hydrogen using electricity - but the company has yet to reveal its plans for sourcing renewable energy, raising concerns about Hyundai's real intentions on meeting growing demand for clean steel in the U.S. And Hyundai's air permit application reveals that it did not consider using many electrified alternative technologies that could significantly reduce the pollution impacts for the steelmaking portion of the plant.

Dr. Bradford Rosenberg along with the Sierra Club legal team wrote to the Louisiana Department of Environmental Quality last month demanding that it hold a public information session, multiple public hearings, and give the public at least 60 days to comment before an air permit is granted to the Hyundai steel facility. "The air permit application does not fully support Hyundai's public commitments that this facility will be a 'green steel' facility," the letter states, adding that Ascension Parish where it will be located "already has more toxic pollution than 96% of the rest of the country."

The local community in Donaldsonville, where the facility is planned, have voiced concerns about health impacts from the new steel mill if it uses methane gas to produce the steel, which will involve releasing toxins, such as nitrous oxide and sulfur dioxide, linked to serious illnesses such as respiratory diseases and cancer. An opinion poll last October showed a majority of locals support the steel plant but that many are concerned about pollution and the public health impact of industrial manufacturing in the region.

Media recently reported that local political representatives have signed non-disclosure agreements, including with Hyundai. State Rep. Joseph Orgeron admitted he signed an NDA tied to the Hyundai steel mill.

A report out this month showed demand exists among U.S. automakers for green steel which could be met by the new Louisiana plant, with Ford, GM and Tesla signalling their desire to ramp up clean steel procurement.

Community Benefits Agreements are increasingly being demanded by communities across the country to hold companies accountable for promises they make following announcements of major projects and to ensure protections for local residents and workers. Such agreements include those involving electric transit bus manufacturers New Flyer of America in Anniston, Alabama and Build Your Dreams (BYD) in Lancaster, California.

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