After 15 months of construction and an investment of $100 million, South Korean steel company Pohang Iron and Steel Co. (POSCO) inaugurated a plant for the manufacture of parts for electric motors (manufactured with electrical steel) for the automotive industry in the northern city of Ramos Arizpe, Coahuila, Mexico, the state government reported.
“Posco comes to consolidate the electromobility industry, an industry that a few months ago began to establish itself in Coahuila,” said the governor of Coahuila, Miguel Ángel Riquelme Solís, according to a press release.
Posco will produce parts (cores) for electric vehicle engines. The $100 million investment is for the first phase. Although the head of the Coahuila Ministry of Economy, Claudio Bres Garza, said that POSCO has already made the decision to invest in the second stage of the company.
From 2023 to 2030, the South Korean company expects to increase its production on an annual average of more than 28.0 percent, to go from 1.2 million to 7.0 million pieces produced. With the start of production, the company hired 200 people.
POSCO arrived in Mexico in 2006 to produce galvanized sheets in the city of Altamira, Tamaulipas (Gulf of Mexico) for the automotive industry and for the home appliance industry. It currently has five plants in Mexico, including a wire rod plant in Celaya, Guanajuato.
According to the company's website, its galvanized sheet clients in the automotive industry in Mexico are Nissan, Volkswagen, General Motors, Honda, Chrysler and automobile manufacturers in the southern United States.
Present at the inauguration of the plant were Young Hak Ko, CEO of Posco; Min Yong Noh, director Posco Mobility Solution; Kye In Lee, Executive Director; Yu Ran Seo, CEO; Kyung Jin Park, director KIA Mexico, among others.