South Korea’s Posco, which is the fifth-largest steel maker in the world, has completed the construction of its second plant in Mexico for the production of galvanised steel sheet used in automotive bodies.

The plant in Altamira — a city in the state of Tamaulipas, in the east of the country — will produce 500,000 tonnes of galvanised steel sheet a year. This will increase Posco’s annual production in Mexico to 900,000 tonnes, a company spokesman said, making it the second-largest steel maker in the country (after Mexico’s own Ternium). Posco opened its first plant in Mexico in 2009.

The opening ceremony was attended by Mexico’s Economic Minister (Ildefonso Guajardo) and Posco CEO Chung Yoon Yang, along with representatives of clients such as Toyota and Volkswagen. The company spokesman said that the new plant “will focus on the production of zinc-plated strengthened steel plates that are widely used by global car makers for their lightweight models”.

He added that Mexico was chosen because the wages are lower than in many other countries and because of its proximity to the USA and Canada. “The North American market boasts the world’s largest auto consumption.”