Posco to set up motor core plants in Poland and Mexico

In his first move after taking office, Posco International’s new president Lee Kye-in has announced global expansion of Dongdong Motor Core. On February 23, he approved the construction of a new motor core plant in Poland and a second plant in Mexico, and completed the blueprint for the '2030 7 Million Production Era of Drive Motor Core'.

As a result, Posco International will establish a global production cluster for motor cores in five countries, including South Korea (Pohang and Cheonan), Mexico, Poland, China, and India.

The Polish production plant, which will be a bridgehead for the motor core business in Europe, will be located in the city of Brzeg in southwestern Poland. The city of Brzek is adjacent to the production bases of global automakers in Europe, such as Germany, the Czech Republic, Slovakia, and Hungary, so it is evaluated as an advantageous location for local procurement.

Construction on the new factory, which will be built on a 100,000 square metre site, is scheduled to start in June this year and be completed in May 2025. The plant will be expanded according to the production plan, and by 2030, it will have an annual production system of 1.2 million motor cores.
Starting with the production of 1.03 million motor cores ordered from Hyundai Motor Company in January, Posco plans to stabilise the operation of the plant by pursuing orders from major European customers.

Construction of Plant 2 in Mexico began in May 2023 and is scheduled to be completed in March next year. It will be built near the first factory in Ramos Arizpe, which was completed in October last year. When second plant in Mexico goes on stream, the combined annual production system of the first and second factories will be completed by 2030.

In particular, Plant 2 in Mexico will serve as an essential production base to supply 2.72 million motor cores for Hyundai Motor Group's Metaplant America (HMGMA), which was ordered in September last year, and to respond to the local production needs of North American customers.

Posco International has targeted achieving a 10% global market share by establishing a production and sales system of more than 7 million motor cores annually by 2030.

In addition, by localising production on three continents where major automakers such as Asia, North America, and Europe are located, the company has prepared logistics competitiveness and countermeasures against trade barriers, and at the same time, it has laid a foothold to grow into a manufacturer of core drivetrain parts for eco-friendly future vehicles.