The South Korean steel maker Pohang Iron and Steel Company announced an expansion of its Mexican operations.

POSCO Mexico president Mr Min Dong Kim said USD 300 million would be invested to begin a second phase at its galvanized steel plant in Altamira, located in Mexico's northern state of Tamaulipas bordering the United States.

Construction is expected to begin in November and is scheduled to be completed by June 2013.

The plant would produce 500,000 tonnes of galvanized steel annually, mainly for Mexico's rapidly expanding automotive industry.