Plans for one of the world’s largest steel producers to establish operations in Jeffersonville are moving forward. South Korea-based POSCO (NYSE: PKX) will build a wire rod processing center at the Port of Indiana-Jeffersonville, which will create up to 60 high-wage jobs by 2018.
The company will build the 136,000 square-foot facility on 10 acres of land at the port. Construction on the $19 million project is expected to begin this spring. It will be POSCO’s second steel processing line and fourth production line in the U.S.
"We are very excited about the opportunity to develop our first Midwestern U.S. plant at the Port of Indiana-Jeffersonville," said POSCO AAPC Finance Director Kyu Tae Kim. "It is critical for our business to receive cargo by water and to be centrally located in the U.S. market. The Jeffersonville’s port location will allow us to connect with global markets and supply our U.S. automotive customers with ‘just-in-time’ deliveries."
The company says the new plant will process steel wire for fasteners, nuts and bolts used in the automotive industry. It will also serve as a distribution center for other POSCO products.
Last month, POSCO announced it was considering opening the facility in Jeffersonville and the Jeffersonville Redevelopment Commission had approved a tax abatement for the company. That abatement was approved by the Jeffersonville City Council. The Indiana Economic Development Corp. has also offered POSCO up to $550,000 in conditional tax credits and up to $50,000 in training grants.
"POSCO’s planned facility is a good fit for our port and its operations will create new business for other port companies," said Rich Cooper, CEO for the Ports of Indiana. "Steel processors at our port currently supply components for all six of the top U.S. automakers as well as to many Tier 1 suppliers and other participants in the automotive industry’s supply chain. The port’s multimodal transportation options, including year-round barge access to the Gulf of Mexico, offer significant logistics cost savings for POSCO."
POSCO is the fourth-largest company in South Korea, behind Samsung Electronics, SK Holdings and Hyundai Motors. It was the first Korean company to be listed on the New York Stock Exchange and operates 312 facilities in 43 countries.