On October 30, Chairman In-hwa Chang delivered a keynote address entitled “Bridging the Future: POSCO’s Supply Chain Partnership for Shared Prosperity” at the APEC CEO Summit held at the Gyeongju Arts Center.
Chairman Chang emphasized the importance of multilateral cooperation and solidarity in building a sustainable and resilient global supply chain, which has emerged as a key issue for the world economy. He shared strategic economic cooperation cases between POSCO Group and Australia, including strengthening raw material supply chains, jointly developing carbon-reduction products, and advancing the future energy transition during the past half century. He also conveyed a message to jointly create solutions for a sustainable future based on the roles and responsibilities of companies.
[Chairman In-hwa Chang’s Keynote Address at the APEC CEO Summit]
Distinguished APEC Leaders, esteemed business executives, ladies and gentlemen,
Today, I would like to share the values that POSCO Group has built over the past half century and our commitment to a sustainable future.
‘Building a Sustainable Tomorrow’ is the theme of APEC 2025, which is a shared vision that was also supported yesterday by President Lee, Jae-Myung in his opening remarks at APEC Summit 2025.
POSCO Group is putting these priorities into action through the supply chain partnership that we have with Australia.
Advancing POSCO Group-Australia supply chain cooperation in both depth and breadth
Our relationship with Australia began in 1971, when we signed a supply agreement with Hamersley, whose iron ore we used to produce Korea’s first molten iron. Since then, this enduring bond has grown greater and stronger. As our reliable supplier, Australia currently provides 70% of our raw materials. Australia is also our strategic partner in paving the way for future growth industries.
POSCO Group is closely engaged with Australia in 3 key areas.
Steel is the backbone of POSCO Group’s existence. So first, we are working together to transform the steel business into a low-carbon industry. About a 30-minute drive from here in Gyeongju will take you to Pohang Steelworks, Korea’s first integrated steel mill and the crown jewel of POSCO. At Pohang, we are innovating the future steel-making process called Hydrogen Reduction Steelmaking or HyREX. Through HyREX, we aim to dramatically reduce CO2 emissions by using hydrogen instead of coal. With HyREX, we will offer carbon-reduced steel products. And we are considering green hydrogen from renewable energy-rich Australia.
Second, we are building secure supply chains for secondary battery materials. This partnership includes Lithium, which is a core battery material. But our partnership extends beyond lithium, to include nickel, rare earth elements, and other critical resources essential for future industries. Since 2024, POSCO Group has been producing lithium hydroxide in Korea using spodumene sourced from Australian mines. This marks a quality shift in our cooperation, moving from fossil fuel-based projects to sustainable raw materials.
Third, we are fostering a clean energy ecosystem. In 2022, POSCO International and Hancock Energy jointly acquired Senex Energy, which is a natural gas development and production company. Also, POSCO Holdings and POSCO E&C are currently exploring partnerships with Australia’s hydrogen innovators. These joint projects demonstrate the expanding scope of our partnership into clean and sustainable energy for the future.
From bilateral cooperation to multilateral partnership
There is more. Our partnership with Australia has evolved from a bilateral relationship into a broader and more resilient network. Because we now bring together key partners from across the Asia-Pacific, including Japan and China.
In 2010, POSCO made a strategic investment into Roy Hill’s iron ore project, alongside Hancock Prospecting, Japan’s Marubeni Group, and China Steel Corporation.
A joint Port Hedland project is to produce carbon-reduced HBI builds on this foundation to deepen our ties with Marubeni Group. This is a pivotal step to building a decarbonized steel value chain.
This multilateral partnership demonstrates how leading Asia-Pacific economies are working together to promote shared prosperity and a more resilient industrial ecosystem.
The foundation of future-oriented cooperation for society
Our partnership does not end here. Beyond business and investment, we are extending our collaboration to areas of social contribution, such as in safety and disaster response.
POSCO Group is working to implement disaster preparedness in Korea. So, we are benchmarking the advanced disaster response system and accumulated expertise of New South Wales, a region that has overcome massive wildfires. To help communities prepare against disasters and to make quick and safe evacuations, our programs include simulation drills, shelter upgrades and firefighting equipment.
This reflects our belief that a business must do more than achieve economic performance. We must commit to strengthening social resilience, to seek joint solutions for a more safe and sustainable future.
Conclusion and message to APEC
Distinguished APEC leaders and business executives,
Under the theme of ‘Bridge, Business, and Beyond’, this year’s CEO Summit emphasizes that a sustainable tomorrow demands action, not words. Companies must build a ‘bridge’, drive change through ‘business’, and move ‘beyond’ the present into the future.
In this regard, POSCO Group is ‘building a new bridge’ to establish a sustainable and resilient global supply chain through the Australia-Korea partnership. This is a positive step for all of us and a shared promise for a better future with the APEC community.
Let us join hands in shaping a sustainable tomorrow.
Thank you.
▲ On the 30th, POSCO Group Chairman In-hwa Chang delivers a keynote address at the Gyeongju Arts Center, where the APEC CEO Summit is being held.
▲ On the 30th, POSCO Group Chairman In-hwa Chang delivers a keynote address at the Gyeongju Arts Center, where the APEC CEO Summit is being held.