Posco Mexico, the Mexican unit of the South Korean steelmaker, has revealed to the press that it will begin construction of a steel plate plant in Tamaulipas state in September.
The US$250 million plant, which will have a designed capacity of 400,000 tons per year, will produce high grade steel for the automobile industry, supplying about 60 percent of production to Mexico and exporting the rest to the US.
Construction of the plant is expected to be completed in June 2009, Posco officials say.
The plant is Posco's first investment in Latin America, following the establishment of Posco Mexico in December 2006.