South Korea's leading steelmaker POSCO said Tuesday it will nearly double its production capacity of nickel by 2014 in a bid to secure a stable supply of the raw material.

The nickel smelting capacity of the joint venture between POSCO and Societe Miniere du Sud Pacifique SA (SMSP) of New Caledonia will be expanded to 54,000 tons by 2014 from the current 30,000 tons, POSCO said in an e-mailed statement.

The venture, established in 2006 with the ownership of 49 percent by POSCO and 51 percent by SMSP respectively, will begin constructing its new plant next month in Gwangyang, 423 kilometers south of Seoul, to complete the construction by 2014.

After spending 480 billion won (448 million U.S. dollars) on the facility expansion, POSCO would secure a stable supply of nickel by raising its self-sufficiency ratio of nickel, which is used to make stainless steel, to the 60 percent level, according to the statement.

POSCO is the world's third-largest steelmaker, which produces 3 million tons of stainless steel annually.