On May 5, POSCO E&C, POSCO SPECIALTY STEEL and POSCO PLANTEC were all present to showcase energy steel and advanced technology in front of major corporations in Houston, the energy mecca of the U.S. The stage for this was at the Offshore Technology Conference (OTC) which is the largest gathering of global energy corporations. For three days, major oil companies including Shell, Exxon Mobil, Chevron, as well as global EPC (Engineering, Procurement & Construction) companies such as Total and Technip, attended the conference to broaden the future of the global energy industry.
Pictured here: POSCO booth at OTC 2014
Pictured here: Tape cutting ceremony in front of the Korean booth
‘Energy industry’ is a core part of POSCO’s future competitiveness strategy. As such, POSCO has dedicated efforts to develop energy steel technology. Energy steel refers to steels used for the mining, production, transportation, storage and processing for oil and gas. In a nutshell, energy steel serves as a crucial component that is necessary for transporting energy sources around the world. Formerly energy steel business was dominated by European and Japanese steel mills. However, POSCO has made efforts to bolster the collaboration of steelworks, research and marketing department in order to advance technologies to take on a fresh central role in the energy steel market. Through these efforts, POSCO has been able to create high-tech energy steel that is appropriate for extreme environments such as polar and deep sea mining.
POSCO ushers in energy technology
At the 2014 OTC, POSCO was able to use Solution Marketing to promote its energy steel processing and application technology. POSCO first took part in the OTC in 2008 and since then, has been operating a booth at each conference and has steadily assessed demand in the energy industry. As a result, POSCO secured offshore projects with three domestic shipbuilding corporations, and made long term contracts with Shell and Petronas. In addition to product sales, POSCO has been able to develop steel materials based on needs of oil majors, EPC corporations and other clients. Technical partnerships for steel materials and engineering with companies such as Exxon Mobil, SINTEF, AMEC and Fugro were made possible as well.
Pictured here: The honorable guest Moon Seung-wook, chief of Ministry of trade, industry & energy of Korea, and Park Seong-bum, counsel general of Houston, viewing the exhibitions by Korean companies
Based on the results of Solution Marketing efforts, the POSCO booth at OTC this year garnered more visitors than in the past with about 1,050. This was a great opportunity to showcase the POSCO brand to the global energy market. Below are two greatest outcomes from the conference.
Outcome 1. Sign and discuss steel material supply contracts
Pictured here: Steel Solution Center Head, Kim Ji Yong, speaks with distinguished VIP guests
POSCO proactively marketed to energy companies such as IOC (International Oil Company), NOC (National Oil Company), and EPC by actively networking and opening business discussions. There were many opportunities to build relations with high-level personnel from about 71 major energy companies. The main purpose for marketing was to raise awareness of POSCO’s specialized advanced technology by promoting solutions for steel used in energy projects such as finished steel plates, STS, Titanium and wire rods.
Pictured here: OTC 2014 conference attendees touring the POSCO booth
Based on consideration of technology exhibition traits, POSCO set up experts to promote technologies for each field. Moreover, in addition to steel production, POSCO has capabilities for engineering, construction, equipment manufacturing and other differentiating value chain strengths which has helped POSCO distinguish itself to win energy projects. As a result, POSCO was able to sign agreements to supply steel to major energy businesses. Going forward, POSCO aims to continue to create new business opportunities in this way.
Outcome 2. Sign MOU and JDA, and discuss joint research opportunities
Pictured here: POSCO booth at OTC 2014
On this day, POSCO was able to showcase five special solutions including wear resistant steel, slurry pipes, welding, LNG tanks and other steel application technology on a global stage. It was a great opportunity to raise awareness and gather interest from major energy corporations for joint research on technology cooperation, polar region steel and welding materials. In addition, MOUs and JDAs were signed with major companies for more growth.
Prepare for the future with future growth engines!
As the weight of energy projects on the overall business grows, POSCO plans to strengthen collaboration between POSCO E&C, POSCO SPECIALTY STEEL and POSCO PLANTEC in order to develop its capabilities to meet various market changes and be a Total Solution Provider. By making meaningful relationships with some of the largest energy corporations in the world, POSCO can compete in the global top tier level by continuing to develop new projects and technologies that are appropriate to changing market and customer needs.