Posco will start construction on the plant on Wednesday, with an initial price tag of $43 million, the ministry said in a statement. Posco told its plans to Mexican Foreign Minister Marcelo Ebrard, who is visiting South Korea, the ministry said.

On Monday evening Mexican time, Ebrard announced that Samsung Electronics would invest $500 million to increase production of home appliances in Mexico.

(Reporting by Diego Ore; Writing by Kylie Madry)