South Korean steelmaker POSCO announced it will add a hot strip rolling mill to to its facilities at Gwangyang in a regulatory filing on 19 November.

The plans, approved at the board of directors meeting, will see a fourth hot strip rolling mill with an annual production capacity of 3.3Mt built at the steelmaker’s facilities in Gwangyang, South Jeolla Province.

The company plans to begin work on the new plant in September 2011, and complete the facility in January 2014.

The company said the slab steel processed at the new hot rolling mill will be supplied from within the Gwangyang steelworks.

Following the completion of the plant, the company’s hot-rolled coil production capacity will be raised to 26.84Mt

Half of the mill's output is planned to be exported to India where Posco is building a cold rolling complex at Maharastra State, the capital of which is Mumbai, the business centre of India. The mill will supply the local automobile industry. The remainder of output will be used to meet a shortfall of HRC within Korea as well as exports to South East and West Asia,