"POSCO Inter Secures 600 Billion Won Order Before Groundbreaking, Breaks Ground on Mexico Plant"

POSCO International held a groundbreaking ceremony for the electric motor core factory in Mexico on the 6th (local time). The company requested the local governor to support the bid for the 2030 Busan World Expo. From the left in the photo: Claudio, Minister of Economy of the state; Jose Morales, Mayor; Seo Jeong-in, Ambassador to Mexico; Miguel Riquelme, Governor; Ju Sibo, President of POSCO International; Kim Hak-yong, President of POSCO Mobility Solutions; Oh Se-cheol, Manager at POSCO Holdings; Yeom Jong-hwan, President of Yoon Chang Ki Gong.

[Asia Economy Reporter Choi Dae-yeol] POSCO International announced on the 6th (local time) that it held a groundbreaking ceremony for its motor core factory in Mexico. The motor core is a component used in motors, which are essential for electric vehicles and industrial equipment, and is one of the company's main production items.

The company selected Mexico as a strategic base to target the North American market, where the electric vehicle market is expected to grow. This decision considered the fact that the United States restricts imports of electrical steel sheets, the raw material for motor cores, as well as logistics competitiveness. Ramos Arizpe, where the new factory will be located, is in northeastern Mexico and hosts major automakers and parts factories.

The groundbreaking ceremony was attended by Miguel Riquelme, Governor of Coahuila, Seo Jeong-in, South Korean Ambassador to Mexico, Ju Si-bo, President of POSCO International, and Kim Hak-yong, President of POSCO Mobility Solutions.

Aerial View of POSCO International Mexico Factory

The company plans to invest 16 billion KRW in the Mexico factory by 2030 to establish an annual production capacity of 1.5 million units. Even before the factory's construction began, the company signed a long-term supply contract worth 460 million USD (approximately 600 billion KRW) with a major automaker earlier this year. The products will be made using POSCO's electrical steel sheets.

Previously, in December last year, the company completed a Pohang factory with an annual capacity of 1 million units in South Korea. Following its participation in a paid-in capital increase of POSCO A, its Chinese production subsidiary, in July last year, the company is significantly expanding its domestic and overseas production facilities with the groundbreaking of the Mexico factory. It plans to increase its annual production capacity to 7 million units domestically and internationally by 2030.

Ju Si-bo, President of POSCO International, said, "We will use the Mexico factory as a foothold to strengthen our presence in the North American electric vehicle parts market and establish ourselves as a key partner in motor cores within the global eco-friendly vehicle industry."

From the left in the photo: Seo Jeong-in, Ambassador to Mexico; Riquelme, Governor; Ju Sibo, President of POSCO International; Kim Hak-yong, President of POSCO Mobility Solutions.