This photo provided by POSCO International Corp. shows traction motor cores manufactured by the company.
SEOUL, Dec. 22 (Korea Bizwire) — POSCO International Corp., the trading arm of South Korean steel giant POSCO, is set to build a plant in Mexico for the production of traction motor cores in its bid to gain a larger share of the fast-growing North American market.
The company held a board meeting on Wednesday where it resolved to establish a Mexican production unit as part of efforts to localize the production of traction motor cores in the North American region.
The amount of investment approved at the board meeting totaled about 52 billion won (US$43.6 million). The company plans to expand the investment up to 162 billion won by 2030 to create a production outpost for traction motor cores.
The construction of the plant will begin in June 2022 and is expected to wrap up by the second half of 2023.
The initial production volume will be 300,000 units per year, which will increase to 1.5 million units by 2030.
POSCO International said that it selected Mexico as the production base for greater penetration in the North American region, considering the U.S. government’s restrictions on imports of electrical steel, a raw material used in traction motor cores, and the logical competitiveness.
The plant will be located in Ramos Arizpe, Coahuila, which is home to many global automakers and parts makers.
J. S. Shin (js_shin@koreabizwire.com)
