POSCO announced Tuesday that it has completed its first steel manufacturing plant in India, further strengthening its manufacturing capability in overseas markets.

The steelmaker said that its three global steel production mills in Mexico, China and now India will pave the way for POSCO to make inroads into the fast-growing emerging markets. 

The new plant, located within the Vile Bhagad Industrial Complex in Maharashtra Province, west India, will produce 450,000 tons of hot galvanized steel plates per year at its continuous galvanizing line.

The steel products will enter local markets in India or be shipped to other countries, the company said. The materials for steel plates will be shipped from POSCO’s steel plant in Gwangyang, South Jeolla Province.

“POSCO Maharashtra and its high-quality steel plates for vehicles and home usage will be a powerful stroke to make the company a core component for the automobile and related industries,” said CEO Chung Joon-yang.

Major buyers of galvanized steel plates produced in the new Indian plant will include global automakers such as General Motors, Volkswagen, Nissan and Toyota, the company said.

Popular among investors, Maharashtra Province is considered the hub of India’s auto manufacturing industry, being home to players including Tata Motors, Mahindra and Mahindra and Bajaj.

Besides the Maharashtra plant, POSCO is pushing to complete construction of a 300,000 ton electric steel plate mill in India by October 2013 and a 1.8 million ton cold rolling plant by June 2014.

By Chung Joo-won (joowonc@heraldcorp.com)