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POSCO Completes Construction of Second Continuous Galvanizing Line in Mexico
01/28/2014 - On 28 January 2014, POSCO completed construction of a second continuous galvanizing line (2CGL) with an annual capacity of 500,000 tons, in Altamira, Tamaulipas state, Mexico.
POSCO established a 900,000-ton scale automobile steel plate production system by completing this 2CGL factory which complements the 1CGL factory which has an annual 400,000-ton production scale and started operation in 2009. Accordingly, POSCO has become the largest producer of plated automobile steel plates in Mexico.
The main 2CGL product will be galvanized steel plates used in the exterior panels of high end automobiles. In particular, the GI Ace, which has improved coating and processing capabilities, and the 780MPa class AHSS premium grade steel plate which is lighter yet more resistant to external impacts, are increasingly in demand by leading automobile companies and expected to offer high added value to the local automobile industry.
CEO Joonyang Chung commented, “The 2CGL factory is an extension of the road to friendship that POSCO and Mexico have been developing since our Mexico office was established in 1981. I would like to give my deepest thanks to the many government officials, client companies, and suppliers who made successful completion of this factory possible and POSCO will continue its efforts to supply premium quality automobile steel plates.”
Mexico is considered the most optimal production area with low labor costs and proximity to the largest automobile market in North America, POSCO said. Based on these advantages, global automobile companies including Volkswagen, Chrysler, GM, and Renault Nissan have entered the market, while 1,000 or so global parts companies, including Autotech and Benteler Automotive, have also clustered, making it a market with high growth potential.
In addition, Mexico exported 2.4 million automobiles last year, making it the world’s 5th largest automobile export country, and production lines for new automobile steel plates are continuing to increase at Honda, Mazda, and Nissan
In addition to its automobile steel plate factory, POSCO also has 4 processing centers: POSCO-MPPC Plants and POSCO-MAPC, and will continue to contribute to local economy and automobile market promotion, while striving for sustainable growth in the local community and strengthening its global sales networks.
The main 2CGL product will be galvanized steel plates used in the exterior panels of high end automobiles. In particular, the GI Ace, which has improved coating and processing capabilities, and the 780MPa class AHSS premium grade steel plate which is lighter yet more resistant to external impacts, are increasingly in demand by leading automobile companies and expected to offer high added value to the local automobile industry.
CEO Joonyang Chung commented, “The 2CGL factory is an extension of the road to friendship that POSCO and Mexico have been developing since our Mexico office was established in 1981. I would like to give my deepest thanks to the many government officials, client companies, and suppliers who made successful completion of this factory possible and POSCO will continue its efforts to supply premium quality automobile steel plates.”
Mexico is considered the most optimal production area with low labor costs and proximity to the largest automobile market in North America, POSCO said. Based on these advantages, global automobile companies including Volkswagen, Chrysler, GM, and Renault Nissan have entered the market, while 1,000 or so global parts companies, including Autotech and Benteler Automotive, have also clustered, making it a market with high growth potential.
In addition, Mexico exported 2.4 million automobiles last year, making it the world’s 5th largest automobile export country, and production lines for new automobile steel plates are continuing to increase at Honda, Mazda, and Nissan
In addition to its automobile steel plate factory, POSCO also has 4 processing centers: POSCO-MPPC Plants and POSCO-MAPC, and will continue to contribute to local economy and automobile market promotion, while striving for sustainable growth in the local community and strengthening its global sales networks.
