POSCO International Invests US$123 million in CoahuilaBy Rodrigo Andrade | Wed, 07/13/2022 - 12:44
South Korean steel producer POSCO International began the construction of a new plant in the Industrial Park Chuy María in Ramos Arizpe, Coahuila. The plant represents a US$123.3 million investment and will begin producing drive core components for electric motors by the end of 2023.
By 2025, the plant is expected to have a production capacity for 650,000 units per year and or 1.5 million units by the end of 2030, representing 21 percent of POSCO’s global production capacity. The plant in Ramos Arizpe will be POSCO’s first in North America and will cater to the US$460-million orders from regional vehicle manufacturers.
“Using our plant in Mexico as a bridge, we will underpin the North American electric vehicle components market and become an important partner to global automakers,” said Joo Si-Bo, President, POSCO International.
The plant will specialize in producing the cores used in EV drive motors, which are key to generate electricity and to determine the performance of the vehicle. POSCO has invested heavily in the global electric supply chain to have many plants for the manufacture of EV battery components and materials in various regions, such as South America, Asia, Africa, Latin America and Asia Pacific.
POSCO International expects to have a capacity for 7 million engine cores by 2030 but will start with a capacity to produce 1.2 million units. The company will also collaborate with Mexican company RIC Energy to receive clean energy. Monterrey-based RIC Energy is accredited as a Qualified Supplier and has operated in the Wholesale Electricity Market since 2018. “We are extremely proud to collaborate with an internationally renowned company with such high standards as POSCO. We are honored to supply them with clean energy and support them in reducing their carbon footprint” said Roberto de la Garza, General Director, RIC Energy.