South Korean steel maker POSCO has started construction on an automotive steel sheet plant in Thailand which is expected to be completed by 2016.
The plant will be producing galvanized steel sheet for automotive applications and the plant will have a production capacity of 450,000 tons per year.
The company said that Thailand is developing into biggest automotive production base in Southeast Asia with production capacity increased to 3.2 million vehicles.
Posco found it difficult to export automotive steel sheets to Thailand which triggered its move to build the factory at the Amata City Industrial Complex in Bangkok, Thailand.
The facility will produce GI (Galvanized Steel) and GA (Galva-annealed Steel) that will be supplied to local automakers and automotive suppliers.
Posco-TCS CEO Han Kwang-heum said, "We will ensure the stably supply of quality automotive steel sheet and expand our close partnership with local automakers in a bid to take the initiative in the Southeast Asian automotive steel sheet market."