South Korean steelmaker POSCO announced Tuesday that it completed construction of a second plant in Mexico for the production of galvanized steel sheets used in auto frames.
The new plant in Altamira, Tamaulipas state, will have an annual production of 500,000 tons; POSCO’s total production in Mexico will thus rise to 900,000 tons per year with the completion of the new plant, resulting in the company becoming the second-largest steel manufacturer in the region, behind Ternium’s 1.5 million ton annual production.
“The completion of our second plant in Mexico shows the close ties between POSCO and Mexico since setting up our branch office there in 1981,” POSCO CEO Chung Joon-yang said in a statement.
POSCO began manufacturing operations in Mexico in 2009, and according to company, Mexico is strategically crucial for the production of galvanized steel sheets because of its proximity to the US, the world’s largest auto market.
Annual car exports from Mexico are expected to surpass 4 million within five years, according to analysts.