POSCO played a significant role in helping ZPP acquire the quality certification by supplying them with the API-X70 steel plate that is commonly used in API pipes. This certification shows that the products, management systems, and services are in line with the quality standards defined by the GAZPROMCERT system.

ZPP executives meet with POSCO on March 18 to conclude their marketing consultations. On March 23, Russia’s ZPP became certified by Gazprom, the world’s largest natural gas company, with the help of POSCO’s Solution Marketing.

By working with ZPP’s quality design group, steelworks, and research institute, POSCO helped them successfully pass Gazprom’s quality certification procedures – one example of POSCO’s efforts to pursue shared growth with its customers.

The Gazprom certification has enabled POSCO to rebuild its sales infrastructure in Russia, a vast market that demands more than 2 million tons of API plates per year. POSCO aims to continue strengthening its presence in Russia with its advanced steel products and solution marketing services. With ZPP, in particular, this could come in the form of providing diagnostic support for their equipment and steel plates.

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Introducing the API Steel Solution Marketing Trio!

Moon, Tae-yang: Hello. My name is Moon, Tae-yang and I am currently working at Coil and Sheet Order Processing Group of POSCO. In the division, I am in charge of planning the daily supply and demand for iron and steel manufacture at both Pohang and Gwangyang Steelworks, in accordance with monthly plans for slab processing. Along with duty, I am also managing the daily schedule of outer panel slab and foundry pig products which are created by the iron and steel processes.

Kim, Nam-jae: Nice to meet you. I am Kim, Nam-jae, currently working together with manager Moon at the Coil and Sheet Order Processing Group. My account is to proceed client orders as the daily supply and demand plans get confirmed. With the following order details, factories are assigned to produce each item. After that, I confirm the size of a slab and give instructions to steel tapping.

Cho, Hyuk-jin: Hello. I am in charge of sales of hot rolled steel materials at Energy and Tubular Goods Materials Sales Group, whereas manager Moon and manager Kim hold parts in handling thin plate orders, production and delivery. My group sells materials for various steel pipe productions.

Moon, Tae-yang: The solution marketing is the key strategy of enhancing the POSCO steel’s competency. Accordingly, the client-oriented solution marketing has shown a successful balance between technology and marketing in the API steel sector as well. The technology and marketing related divisions including order management, sales, research institute and GTC, coalesced as one to bring out optimal performance while conducting given tasks as a result.

Systematic Cooperation through VOC Analysis
In case of necessity, the divisions held a customer conference to accurately understand the VOC. Then, they searched and applied solutions to all actions from order request to product manufacturing and sales process. As everyone participated systematically and intimately in the solution marketing activities, a great amount of achievements was generated.

Cho, Hyuk-jin: The main topics of the quarterly technical consultation with client companies, have been extended from steel grade and ingredient to process unit weight and customized width of client’s demand. Paying close attention to every client demand and meticulously analyzing each request’s reason behind are certainly cumbersome. However, the process improved the task comprehension between technology and marketing, ultimately contributing to smooth and organic interactions.

Freight Cost Reduction Brings Profitability and Competency Boosts

Moon, Tae-yang: Since each client prefers a different unit weight, we adjusted transportation vehicle’s intervals depending on the unit weight of each client’s demand. Also, we put the transporting path from the steel mill to client’s plant sites into our consideration, and fully apprehended the shipping company’s car status in order to aptly allocate the vehicles on time.

The client companies that used to insist only on ‘longer’ products, gained higher satisfaction as the ‘better’ sized API steel was supplied. And, the improved product brought a decrease in extraction rate, also leading to a reduction of raw material costs. Moreover, as Pohang Steelworks’ API steel supply was enlarged about 60% compared to the previous year’s amount, transportation fees for nearby client companies in Pohang were reduced respectively!

It felt like the yearlong search for an answer from VOC was completely rewarded by the ‘client profitability improvement’. Also, POSCO’s strength as an API steel pipe material supplier was remarkably developed.

Kim, Nam-jae: We are currently at the testing stage of steel pipes manufacture. The pipes are produced at the new hot rolling plant No.4 in Gwangyang Steelworks, which has launched recently. Though there are still many aspects to be tested, we are expecting various positive effects as the tests get complete successfully.

First of all, the overall API production capability of Gwangyang Steelworks will be increased. And, it will lead to a large decrease in work load of the existing API steel plants including hot rolling plant No. 3. Most of all, the addition of another processing plant will speed up the production waiting time and the shipping date. We are expecting that this will ultimately amplify the client’s satisfaction.

POSCO’s solution marketing is certainly an essential strategy to POSCO steel’s competitive strength. We ask for your continued support and interest in POSCO’s API steel solution marketing that will always aspire to provide the ‘best’ environments and the ‘strongest’ effects to POSCO’s clients!