Almost five months after South Korean conglomerate Pohang Iron and Steel Co. (POSCO) opened its $100 million factory to produce parts for electric motors (manufactured with electrical steel) for the automotive industry in the northern city of Ramos Arizpe, the company has already confirmed its decision to build a second plant and have in Mexico the largest Posco International production center in the world.
“It is already confirmed, the investment announcement for a second plant in Ramos Arizpe has already been made,” Armando Flores, head of Economic Development of the municipality of Ramos Arizpe, told SteelOrbis.
By 2030, Posco International, a subsidiary of POSCO, will have in Mexico the largest production center for traction motor cores for electric vehicles (EV) in the world.
Last week, the board of directors of Posco International, a subsidiary of Posco, announced that investment was approved for the expansion of engine parts factories in Poland and Mexico, with the aim of producing seven million cores for traction motors for 2030 at its facilities in Korea (Pohang and Cheonan), Poland, China, India and Mexico.
With an investment of $100 million, Posco International formally inaugurated its plant in Ramos Arizpe on October 17. The investment amount for the second plant was not revealed, although it was revealed that it will be lower because the first one included the purchase of the land.
Construction of the second plant, next to the first, will begin next month and is expected to begin operations in March 2025. The production capacity of both plants will be 2.5 million units per year by 2030.
Ramos Arizpe's production will be to supply auto parts to the Korean Hyundai Motor Group at its electric vehicle plant in Bryan County, Georgia (United States), which will begin production in 2025 with an investment of more than $5.5 billion.
According to Posco International's plans, by 2030, Mexico will be its largest traction motor core factory in the world with an annual production of 2.5 million pieces, above Korea's 2.0 million pieces per year, 1.2 million from Poland and 1.0 million units from China.