POSCO, the world's fifth-largest steelmaker, said Tuesday it has completed the construction of its second plant in eastern Mexico for producing galvanized steel sheets used in auto bodies.

The plant was built in Altamira, a city in the state of Tamaulipas, and will produce 500,000 tons of galvanized steel sheets a year, the company said.

The completion of the second plant will raise POSCO's annual production in Mexico to 900,000 tons, it said.

POSCO constructed its first plant in the North American country in 2009.

Mexico is best suited as the site for auto steel sheet production as wages there are lower than in other countries, and together with the United States and Canada, it makes up the North American market, which boasts the world's largest auto consumption, POSCO said. (Yonhap News)