Posco has broken ground on its $350M cold-rolled stainless steel plant in Izmit, Turkey as part of its efforts to become a leading stainless steel maker in the region.

The plant, scheduled to be completed in April 2013, will have a capacity of 200kt.

It is the steel giant’s second investment in Turkey, following the launch of its Posco-Turkey Nilufer Processing Center (TNPC), auto steel processing centre, in Bursa Province last year.

Currently, the Pohang-based company, which can produce nearly 3Mt/y of stainless steel, is sitting third in terms of annual production capacity behind Acerinox and Taiyuan Iron and Steel, which have capacities of 3.4Mt/y and 3Mt/y.

The mill will be established within the Izmit industrial complex, about 100km east of Istanbul and its proximity to Derince Port will make it easy to bring in stainless hot-rolled plates, from Pohang Steelworks.