POSCO Inter to Build Rotor Motor Core Factories in Poland and Mexico

POSCO International has completed its global production cluster for drive motor cores by deciding to build factories in Poland and Mexico. This decision to establish and expand factories is the first action taken since the inauguration of POSCO International's new CEO, Lee Gye-in.

POSCO International announced on the 26th that it approved the construction of a new drive motor core factory in Poland and the expansion of its second factory in Mexico at a board meeting held on the 23rd. With this, POSCO International will establish drive motor core production bases in five countries including South Korea (Pohang and Cheonan), Mexico, Poland, China, and India. The plan is to build a global production cluster capable of producing 7 million units annually.

The Polish production plant, which will serve as the European foothold for the drive motor core business, is scheduled to be built in the city of Brzeg in southwestern Poland. Brzeg is considered a favorable location for local procurement as it is adjacent to production bases of global automakers in Europe such as Germany, the Czech Republic, Slovakia, and Hungary.

The new factory, to be constructed on a 100,000㎡ site, will begin construction in June this year and aims for completion in May 2025. The factory will expand in scale according to production plans and is expected to establish an annual production system of 1.2 million drive motor cores by 2030. POSCO International plans to stabilize factory operations by starting production of 1.03 million drive motor cores ordered from Hyundai Motor Company in January and pursuing orders from major European customers.

Aerial view of POSCO International's Poland Driving Motor Core Production Corporation
[Photo by POSCO International]

The expansion of the second factory in Mexico will begin construction in May this year and aims for completion in March next year. It will be built near the first factory, which was completed in Ramos Arizpe in October last year. Once the second factory in Mexico is completed, an annual production system of 2.5 million units will be established in Mexico by 2030. In particular, the second factory will play a crucial role as a production base capable of supplying 2.72 million drive motor cores to Hyundai Motor Group Meta Plant America (HMGMA), ordered in September last year, and meeting the local production demands of North American customers.

This investment is a decision to realize POSCO International's vision of achieving a 10% global market share in the global drive motor core market by 2030. Furthermore, it aims to establish localized production across three major continents?Asia, North America, and Europe?where major automakers are located, thereby enhancing logistics competitiveness and addressing trade barriers.

CEO Lee stated, "POSCO International's future direction is to create synergies between different businesses and become a platform company that generates new businesses," adding, "We will innovate our business model by solving customer problems through digital transformation (DX)."

This content was produced with the assistance of AI translation services.