POSCO hosted the 2017 Global EV Materials Forum at the Songdo Global R&D Center in Incheon.

POSCO welcomed more than 380 local and overseas customers to the forum where they announced the current status of POSCO Group’s EV projects and strategies. The company also showcased its core EV technologies for high-value-added products such as motors, batteries and lightweight chassis/bodies.

During the forum, POSCO highlighted customer needs, market trends and development statuses in three areas: lightweight materials, traction motor cores and batteries. POSCO researchers also gave presentations on POSCO’s high-value-added products and solutions to share market insights and technological developments with the participants.

Participants listen to presentations at the 2017 Global EV Materials Forum.

In his keynote speech, In-hwan Oh, president of POSCO, said, “POSCO is in full preparation for the future of an electric vehicle ecosystem, to become a reliable partner to our customers.”

There were also external speakers at the forum, including Stephen Zoepf, Executive Director of the Center for Automotive Research at Stanford University, who spoke about “Electric Vehicles: Adapting to a Changing Marketplace.” Another external speaker was Martin Woehrle, senior director of BMW Korea, who gave a presentation on the trends in EV development.

In addition, POSCO held a separate exhibition at the venue consisting of four key product zones: motors, batteries, light-weight chassis/bodies and charging infrastructure. There was also an EV model on display in the Highlight Zone for a better understanding of the structure of EVs.

Visitors examine the electric Nissan Leaf

On display In the lightweight chassis/bodies exhibition zone was POSCO GIGA STEEL for lightweight chassis/bodies, which is lighter but much stronger than existing automotive steel sheets. Also on display was POSCO’s lithium materials for EV batteries; POSCO is the first company in Korea to commercially produce lithium for EV batteries.

In the motor zone was POSCO Daewoo’s a high-efficiency traction motor core for EVs made with POSCO’s Hyper NO, its highest-grade, non-oriented electrical steel. POSCO is already supplying it to major automakers.

The charging infrastructure zone showed POSCO ESM and POSCO Chemtech’s core materials of EV batteries, such as cathode and anode materials. In addition, POSCO ICT is the only company in Korea to provide a total-service electric vehicle charging infrastructure, including supply, installation and operation to membership management and supplementary services.

To close, POSCO pledged to become a “Total Solution Provider” for its partners in the auto industry bracing for the age of electric vehicles with its innovative technology, premium products and customized services.

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POSCO’s innovations in steel technology have long supplied material solutions for the automotive industry. Last year, POSCO sold approximately 9 million tons of automotive steel sheets, accounting for 10% of the global automotive steel sheet market. In 2017, POSCO’s focus on providing customers with the most advanced, high-quality steel continues with POSCO GIGA STEEL.

POSCO GIGA STEEL, the Beginning of a New Era

POSCO GIGA STEEL represents the apex of steel technology as it is lightweight, strong, and highly formable – exactly what automakers are looking for. Innovations in POSCO’s manufacturing processes reduce both its production emissions and price, making it a more sustainable and affordable option for car makers compared to other lightweight materials. See how POSCO GIGA STEEL is opening a new era for automotive steel in the video below.

POSCO GIGA STEEL Provides Strength & Safety

Automotive steel is categorized according to its tensile strength. POSCO GIGA STEELS fall into the highest category, which includes steels with a tensile strength rated at more than 1 GPa (Gigapascal), meaning it can withstand more than 100 kilograms-force per square millimeter. In the past, steels with tensile strength ratings this high have been problematic for automakers as they had low ductility and elongation properties.

What makes POSCO GIGA STEEL the ideal material for automakers is its ability to both bend and withstand an immense amount of weight and pressure. POSCO’s ultra high strength giga steel has up to three times more formability than other types of comparable steel on the market, making it ideal for manufacturers.

A car’s safety can also be enhanced significantly when POSCO GIGA STEEL is applied to a vehicle’s BIW (body in white) or front and back bumpers. POSCO GIGA STEEL is not only strong but has exceptional shock absorption during impact.

The strength and safety of POSCO GIGA STEEL have been tested and proven to meet the industry’s strictest safety standards. The POSCO Body Concept-Electric Vehicle (PBC-EV) is a lightweight and safe car body for electric vehicles made with POSCO GIGA STEEL. In safety tests, it received “five stars” from the Europe New Car Assessment Program and a “good” rating from the Insurance Institute for Highway Safety (IIHS) – the highest ratings one can receive from both organizations.

POSCO’s PBC-EV made with POSCO GIGA STEEL is both safe and lightweight.

POSCO GIGA STEEL Helps Deliver Lightweight & Sustainable Cars

Strict regulations on fuel efficiency and carbon emissions continue to push automakers to look for lighter materials to reduce the overall weight of vehicles. However, because stricter safety regulations typically require using heavier body parts, automakers are looking for both strong and light materials to build their cars. Lightweight solutions can be found in some alternative materials, such as aluminum and carbon fiber composites, but there are some drawbacks. For example, although POSCO GIGA STEEL is heavier than aluminum (when measuring equal parts area and thickness), it is more than three times stronger. Therefore, less of it is needed to manufacture products that are as light or lighter than those made with aluminum.

Car bodies manufactured with POSCO GIGA STEEL and other advanced high strength steels could see a 26% reduction in total weight when compared to cars of the same size with internal combustion engines. Considering that the average body weight of medium-sized cars in the early 2000’s was 280-300 kg, this is a remarkable achievement for automakers today.

Also, based on its life cycle assessment measuring carbon dioxide emissions from production to recycling, POSCO GIGA STEEL performs remarkably well as an eco-friendly material. According to the World Steel Association, steel emits 2.0 to 2.5 kg of carbon emissions when producing 1 kg of material while aluminum emits 11 to 12.6 kg when producing the same amount. Even after production, cumulative greenhouse gas emissions of vehicles made with steel is 10% lower when looking at the full life cycle.

POSCO GIGA STEEL Offers an Affordable Option

In automotive lightweighting, a reverse correlation often exists between price and weight. Lighter materials are typically more expensive and heavier materials usually have a lower price. POSCO GIGA STEEL helps bridge this gap by producing automotive steel that is both lightweight and cost-effective.  

Body parts made of POSCO GIGA STEEL can see significant cost savings. Alternative materials like aluminum can cost anywhere from 2.1 to 3.5 times more than POSCO GIGA STEEL. Additionally, current market prices of alternative materials are not expected to decrease over the next ten years.

Facing increasingly strict regulations, POSCO GIGA STEEL offers an ideal choice for automakers to build stronger, lighter, and more sustainable cars. According to POSCO Research Institute (POSRI), advanced high-strength steels (AHSS) like POSCO GIGA STEEL should see increased demand, accounting for 69% of total steel plates by 2023.

Throughout April & May, The Steel Wire will explore how POSCO is leading the automotive steel market with its innovative steel products like POSCO GIGA STEEL. Don’t miss any of the exciting stories from The Steel Wire – subscribe via email today. 

At POSCO, there are many talented researchers, engineers, and factory workers, who are working constantly to make steel stronger, lighter, and longer-lasting. The Steel Wire sits down with three of those POSCO employees who have played essential roles in helping to establish POSCO as an industry leader in automotive steel solutions.

Q1. POSCO has relied on its experts to become an industry leader in advanced automotive steel manufacturing, and you have all played important roles within POSCO’s development of automotive steel. Can you tell us about the fields you are in and what your role has been?

[Shin Seung-cheol] For the last three decades, my main focus was to secure POSCO’s position as an industry leading automotive steel producer. Currently, I am at Gwangyang Steelworks working to create steel innovations and develop new technologies.
[Cho Byeong-ho] I work in the cold rolling department at Gwangyang Steelworks. Since joining POSCO in 1990, I have been working to develop World Premium Products, which account for 70% of the cold-rolled products manufactured in my department.
[Lee Jin-soo] I began my career at POSCO in 1993 working as a sales engineer in Indonesia and Singapore. After that, I moved to Gwangyang Steelworks where I was in charge of establishing technology strategies for automotive steel sheets as well as producing Tailor Welded Blanks (TWB). More recently, I guided the completion of Thailand CGL in 2016 to help POSCO be more competitive in the SE Asian market. Now, I serve as the corporate head of POSCO-Thailand Coated Steel (TCS).

“POSCO’s mission in 2009: Develop the best, most advanced automotive steel solutions that only POSCO can produce.”

Q2. Starting is often the most difficult step and we have sure faced some hurdles along the way. Can you tell us about the some of the problems you faced while developing automotive steel products?

[Shin Seung-cheol] Sure, in 2009, our team’s goal in the rolling sector was to ensure the productivity and quality of the World Premium Products. In the annealing process of the cold rolling sector of the Gwangyang Steelworks, I was told to make “the best automotive steel plates.” However, compared to other products, automotive steel plates demand a much higher quality than other products, and our equipment was outdated and rundown, making it almost impossible to create the flawless steel plates that were required. Achieving both high quality and continuous mass production required a new level of innovation.

[Cho Byeong-ho] When I was at the cold rolling mill, we were facing challenges from both domestic and foreign competitors. So, we streamlined old equipment and increased production of the World Premium Products such as automobile steel plates and high-grade steel. However, there were many problems. At one point, the cold rolled steel kept falling off before reaching the rolling process.

Q3. There’s a famous quote that says ‘Patience is bitter, but its fruit is sweet.’ Does this make sense when you think about the work you accomplished in developing advanced automotive steel for POSCO?

[Shin Seung-cheol] Yes, that quote rings true for our team. After three years of testing the steel surface quality and improving the Continuous Annealing Line (CAL) facility, we eventually succeeded in securing high-quality automotive steel plates. Strict management standards along with systematic & rigorous product inspections from the customer’s point of view were also put in place in order to ensure that the products met the client’s needs.

[Cho Byeong-ho] When we couldn’t keep the steel from falling off before reaching the rolling process, we decided to visit the cold-rolling mill at Pohang Steelworks to help us find a solution. There, we worked on solving the problems with a small-scale laser welding team and we got support from maintenance experts. With proper facility training and data improvements, the 2nd cold rolling mill was ultimately able to work consistently.

“Now, it’s more than a mission. We will be the leading automotive steelmaker in Asia.”

[Lee Jin-soo] Thanks to our team’s endless efforts, POSCO was able to succeed in producing highly competitive automotive steel. POSCO provides around 150,000 – 200,000 tons of galvanized steel plates to Thailand every year. But we did not want to be #1 only in Korea; we wanted to have a stronger presence in the growing Thai market as well.

In order to expand our presence in the Thai market and provide stable supplies to existing clients, we differentiated ourselves from competitors through the quality of GI products for home appliances and painting – areas where we held a competitive advantage.

Q4. Your passion for finding innovative solutions, as well as your success at POSCO, is impressive. What are some of the most meaningful accomplishments you have made at POSCO?  

[Shin Seung-cheol] I was very grateful to be named as one of the POSCO Masters of Korea in 2016. This honor is reserved not only for the best field technicians with the highest levels of skill, but also for those who help their coworkers by sharing their expertise. I was happy to be acknowledged for my own skills as well as my efforts to help others.

[Lee Jin-soo] I am proud that I was able to be a part of the efforts to bring two manufacturing centers in Mexico online. POSCO-MPPC plant 1 & plant 2 were POSCO’s very first overseas construction sites and were very important for the future of POSCO’s global growth. And recently, getting the chance to guide Thailand CGL to its opening was very important for POSCO and very meaningful for me.

[Cho Byeong-ho] When I started, I believed that it would be really helpful to gain knowledge about each part of the steelmaking process. As a result, I taught myself about each step and acquired certificates in various fields including ‘Master of Craftsman Welding’ and ‘Master Craftsman of Rolling.’ This allowed me to do more specialized work for POSCO and for its automotive steel solutions.

Q5. Lastly, please share with us your vision moving forward.

[Shin Seung-cheol] While I’m somewhat confident in my operational skills after 34 years on the job, I still want to study more. I want to learn more about engineering theory and process development. My dream is to become the best possible technician I can be.

[Cho Byeong-ho] Moving forward, I want to continue the work to boost our equipment capacity while also improving our technology so that we can continue to produce the best World Premium Products.

[Lee Jin-soo] At Thailand CGL, we want to move forward to provide manufacturing technologies, such as mold technology and automotive steel sheet buying channels, to small local companies. This will allow POSCO to expand its contract base into a solution marketing system.

The advancements made in POSCO’s advanced automotive steel are driven by people like Shin Seung-chel, Cho Byeong-ho, and Lee Jin-soo. Without their determination, intelligence, and innovative thinking, POSCO could not be where it is today.

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The opening of the POSCO America office in Atlanta was attended by more than 30 VIPs, including embassy dignitaries, POSCO executives, and customers.

Previously located in New Jersey, POSCO America’s move to Atlanta puts it in the center of the economic hub of the southeast region of the US and strategically close to the growing automobile and energy industries. The annual demand for steel in the southeast accounts for about 38% of the US’s total demand of 41 million tons. In addition, lower labor and logistics costs are helping the southeast revive the US manufacturing industry.

Many of POSCO’s customers are also concentrated in the southeast, including Hyundai, Kia, Kiswire, Caterpillar, GM, Honda, and other auto parts companies. Because Atlanta has become a transportation hub both regionally and nationally, it will be easier for POSCO to secure highly-skilled workers while also taking advantage of the inland transportation systems that provides easier access to key cities such as Houston, Mobile, New Orleans, Wilmington, and more.

POSCO America is laying the groundwork for an increase in demand for steel in the southeast region of the US. The office will act as a forward base for POSCO’s exports and contribute to the development of the region by creating demand for high-grade steel. Moreover, moving beyond the role of a basic steel provider, POSCO America will provide high-quality customer service in real time, becoming a “Total Solution Provider,” working closely with its sales offices in Detroit, Houston, and Mexico, as well as its regional technical service centers.

Since its establishment in 1984, POSCO America has been exporting its products to the Americas and managing local joint venture corporations. The office will act as the regional headquarters of POSCO America with over 40 employees working to support sales and technical teams for regional clients while also helping to support POSCO’s affiliates and subsidiaries in the US.

POSCO America represents 24 corporate investments, subsidiaries, and affiliates in the Americas. Major production and sales subsidiaries in the Americas include POSCO Canada which mines and sells coal from Canada; UPI, a joint venture between POSCO and US Steel; the Alabama Coil Production Center; POSCO Mexico, which produces and sells plated products; and CSP, an integrated steel mill jointly founded with Dongkuk Steel, which produces and sells slabs. As POSCO Group affiliates, POSCO Daewoo and POSCO E&C are active throughout many places in the Americas.

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In 2030, Mr. K picked up a container of fine black powder before going to work. Last night, on his way home, his automobile ran out of fuel, and the materials in this container will be used to refuel his car.

The substance he is carrying in his hand is steel powder, in nanometer (1/1,000,000,000 meter)-sized particles. Fuel made from metal may have only been thought to exist in stories, but in fact, research on ‘metal fuel’ is already in the process of becoming a reality.

Since thousands of years ago, mankind been able to use metal’s properties through burning. One example is the fireworks we use during celebrations, which are created by setting metal powder on fire mid-air. The concept of metal fuel is to use heat, light and explosive power, but for automobiles or power plants rather than just fireworks.

Metal actually has far more potential to act as a fuel than gases or liquids, as it produces much more heat from chemical reactions. For example, energy stored in 1L of LNG produces 22.2MJ (megajoules), but iron of the same volume produces 40.68MJ, and aluminum, 83.8MJ.

One of the well-known examples we use metal as fuel is for fireworks, which we ignite by setting fire on metal powder while it is in the air. Scientists want to use the heat and combustion energy generated during these types of reactions for running an automobile or a power plant.

There are two main ways to use metal as fuel for automobiles or power plants. The first is to set fire to metal when it is in the form of fine particles, and then have it react it with oxygen (4Al+3O₂→2Al₂O₃). The enormous amount of heat generated can be used to operate an engine.

Another way is to combine metal powder with water. Recall the experiment during your elementary school science class when you poured water onto a glittering sample of aluminum. Soon after, the mixture would start boiling over. For this highly reactive outcome, the aluminum had reacted to hydroxyl ions immediately when water came into contact with it (2Al+6H₂O→Al(OH)₃+3H₂).

This process generates hydrogen gas and heat. Hydrogen gas itself can be used as fuel (in the form of fuel cells), or, in other cases, the intense heat can operate an engine or turbine.

When the US army’s thermobaric weapon exploded, powerful shock waves were generated through an aluminum powder explosion, having the ability to destroy facilities or people.

Clean and convenient fuel – Overcoming its reluctant combustion with nanoscience

This is the biggest advantage of metal fuel. Neither of the two reaction formulas include carbon (C). This means it does not generate carbon dioxide, which is the main cause of climatic change. But this is not its only strength of; metal fuel is renewable. When you burn trees or coal, only unusable gray ashes remain, and other materials get carried away into the air. But when you burn metal fuel, you will get oxidized metal.

After separating oxygen from the oxidized metal through an additional process, you will get the same amount of metal you had before. You will never run out of fuel. Unlike renewable energy, like solar or wind power, you can also use it regardless of weather conditions. Another one of its great merits is that it can be imported and exported by cargo, with no need for installing a separate transmission network.

But using metal as fuel is easier said than done. First, the temperature needs to reach a certain level in order to set fire to the metal, which has an extremely high reactivity. Its high reactivity is, ironically, both its strength and its weakness as a fuel.

The principle of its low combustibility can be explained through this example: if you place pure metal in the air, it becomes rusty by reacting to oxygen and developing a thin layer (oxide coating) on its surface. You can burn metal when it comes into contact with an oxidizer like oxygen, but it interrupts the initial process.

This coating has a very high melting point normally: pure aluminum’s melting point is 660℃, but the oxide coating of aluminum has a melting point of around 2100℃. The burning temperature is not impossible to reach, but it is difficult to get it to that level due to stability and economic feasibility.

This is not the only problem. We still don’t know exactly which conditions produce the amount of firepower we need to safely produce fuel energy. We can burn very small metal particles easily, but the energy we obtain may be too little, or it may arouse the danger of explosion. However, if the particles are too big, they cannot be burnt easily. What we need to do technologically is to figure out the optimal particle size, mixture ratio, and content.

Another obstacle that inhibits the commercialization of metal fuel is that we don’t have the proper technology to stably supply it as needed. For example, when you drive a car, you can always start or stop the engine and drive to the desired speed at any time. This is possible because of the availability of the technology that exactly supplies fuel to the engine as needed.

Gas fuel can easily be controlled by a valve, and liquid fuel can be controlled with a spray. But in metal fuel, the amount is hard to be controlled due to cohesion, a unique property of its powdered form. Cohesion can be explained through imagining flour or powdered sugar forming a cluster. This is the real reason why previous plans attempted by many research institutes in order to develop an automobile steel have ended unsuccessfully.

Favorable conditions for producing electricity

Fortunately, however, several alternatives have been discovered as a result from foundational research on metal fuel. For example, you can easily burn pure metal powder by coating its surface with material that has a low melting point, such as nickel.

Nickel has a lower ignition temperature than aluminum, and reactions between metals generates heat, which in turn burns aluminum faster. (This metal reaction refers to the oxidation-reduction reactions that occur when metals with different ionization tendencies contact each other and have their electrons transferred.)

Recently, a collaborative research team consisting of two professors, Jeffrey Bergthorson and Samuel Goroshin, from McGill University’s mechanical engineering department in Canada, which is considered the world’s leaders in metal fuel research, has succeeded in producing the power equivalent to fossil fuel-powered engines with a heat engine using metal fuel they directly developed.

In the paper they published the ‘Applied Energy’ journal, the research team stated, “The first candidate that can be utilized for this purpose is steel”, and also that “Steel powder produced by steel manufacturers or chemical or electronic industries in the world can be used as fuel for automobiles.”

Results from experimenting with the combustion properties of various metals. Foundational research on metal fuel has finally reached its final step, and scientists are now researching into applying metal fuel to sources such as power plants.ⓒProf. Jeffrey Bergthorson of the mechanical engineering department at McGill University, Canada.

The concept map of an engine using metal fuel developed by Professors Jeffery Bergtorson and Samuel Goroshin of the mechanical engineering department at McGill University, Canada. The heat generated by this system is expected to be used to run an automobile or a home electricity generation system.ⓒSamuel Goroshin & Jeffrey Bergthorson (“Applied Energy” Journal)

Can we really have a car powered by steel in the future? Since metal is still more expensive than other fuel materials, it may not be able to replace every type of fuel. But in particular conditions where there is no oxygen, which is the most commonly used oxidizer, it may be successfully utilized to make electricity. For example, the metal powder in weapons from a supercavitation underwater vehicle can react to water and obtain its driving force. If we can develop technology to control this reaction, we may be able to get a new engine paradigm for a vessel that obtains its driving force by reacting metal powder to seawater.

Written by DongA Science reporter Ahyoung Woo

The opinions expressed in this POSCO Report piece are the author’s own and do not necessarily reflect the views of POSCO.

Celebrate the Radiant Science Behind Colorful Fireworks

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POSCO will exhibit its technology for the first time as a steelmaker at the North American International Auto Show in Detroit on Jan. 11 to 24.

TWIP is the “dream material” that has improved its intensity and machinability, and has been produced by POSCO for the first time as a steelmaker, representing the unique power of POSCO’s technology.

This steel’s intensity is five times stronger than other steel in terms of machinability, while withstanding up to 100 kg per mm². Therefore, it proves excellent in impact absorption and increased safety. This technology can be applied to bumper beams of automobiles. Many competitors have tried to develop TWIP, but failed to deploy it on a commercial scale.

HPF steel is hard to process when the intensity level exceeds 1.5 GP. To counteract disadvantage, HPF has increased its machinability through heat treatment. This product can be applied to center pillars to protect passengers from external accidents. POSCO has become the world’s first steelmaker to successfully produce a product in level of 2GPa. This product was first introduced as Renault’s 1 L concept car at the Paris Motor Show in 2014, and it earned favorable reviews.

POSCO will also showcase the 1GPa-TRIP, a recently developed steel with high intensity and ductility, and the PosM_XF (extra formability), the next generation TRIP with improved machinability.
For the NAIAS, POSCO aims to attract global automakers’ purchasing needs by revealing the most idealistic steel plates for automobiles.

About 30 high-strengthened and light weight products including POSCO’s original products are being exhibited at this year’s motor show. POSCO plans to get attention from global automobile companies by presenting the auto body made with most ideal and the world’s best car sheets.

The weight of the steel itself is about 26.4 percent lighter compared to mid-sized vehicles and has been verified in terms of safety. It received a five-star safety rating, as well a “good level.” which is the highest level possible, for internal performance evaluation conducted by Europe and North America’s automobile collision evaluation Institute, Euro NCAP and IIHS.

In addition, the Life Cycle Assessment (LCA), which measures the amount of CO2 discharged throughout the entire life cycle from material production to recycling, showed that the internal combustion engine body was 50 percent lower, and average electric car emission was about 9 percent less. It also gives off fewer emissions of CO2 compared to electric vehicles made with one-third the gravity of aluminum in comparison to iron.

POSCO currently supplies automobile steel sheet to the automobile manufacturers and component manufacturers, including the global top 15 companies such as Toyota, Volkswagen, and GM through 10 automobile production plants and 24 machining center. POSCO has proven its quality excellence by receiving “This Year’s Supplier” from the world’s leading automotive companies such as Toyota and GM.

POSCO is planning to expand 70 percent or more of World Premium (WP) steel sheet sales ratio by not only supplying products but also providing use of technologies such as molding and welding for customer’s best utilization of certain products through the development of solutions marketing activities.

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If 274 million tons of hot rolled products, the top selling products among the 800 million tons of steel products sold, were transformed to 4.5 inch-thick water piping used for household purposes, it could make 32 round trips between the Earth and the moon. Hot rolling involves rolling steel at high temperatures and is widely used for making pipes, auto parts, construction materials and section steel.

Since 2000, when POSCO began concentrating on automobile steel grade, the accumulated sales of cold rolled products have exceeded that of hot rolled products. From 2001 to August 2015, the accumulated sales of cold rolled products total 181.14 million tons, which is 53 million tons more than the sales of hot rolled products during the same period (128.14 million tons). Cold rolled products, which roll hot rolled products again at room temperature, are premium steel products with a fine surface finish. They are used in a variety of applications such as cars, home appliances, industrial machines and construction materials, making huge contributions to increasing profits.

POSCO continues to strengthen its competitiveness and improve profits through the sale of environmentally friendly, high value-added products in plates, wire rods, stainless steel and electrical steel sheets. POSCO plans to expand its sales share for World Premium products to 33 percent by 2014, 45 percent by 2016 and 60 percent by 2020. Meanwhile, POSCO held a resolution meeting to readdress the meaning of achieving an accumulated sales of 800 million tons, expanding the sales of high value-added products, and overcoming the current market conditions. At the meeting, Inhwan, Oh, Head of the Steel Business Division said that the accumulated sales of 800 million tons of steel products is a remarkable feat, resulting from every employees’ commitment to their jobs and asked employees to continue making efforts to take a leap toward the top global steelmaker by turning the current industry crisis into an opportunity.

On September 21, employees of the steel sales division celebrated cumulative sales of
800 million tons at the POSCO Center, promising to improve upon the profitability and
the global competitiveness of POSCO to overcome challenging obstacles in the steel industry.

Please Give Us A Brief Introduction And Your Account At POSCO!
Since my entrance to POSCO in 2010, I have been working in the auto steel plate sales team and actively participating in field sales activity. Before joining POSCO, I was an engineer in charge of developing an engine in automobile company. However, as I start new at POSCO, I jumped into marketing with a strong passion in mind. Maybe it is due to my destiny with automobiles, I am now conducting automobile steel plate sales business! Until about a month ago, I was in charge of sales targeted to GM Korea. Because of my responsibility to handle contract issues, I had frequent meetings with client companies. My major work revolves around managing and signing of the key contracts that are vital in achieving corporate’s annual sales goal. Hence going on 100+ business trips a year became the norm to maintain good relationships with the existing clients and to meet new clients. Now I can breeze through a business trip from Seoul to Bupyeong.

Looking Back On Your Past Experiences, What Do You Consider As The Most Essential Quality Of A Marketing Manager

From five years of my past experiences, I believe that the basic quality required for a marketing manager is ability to ‘scratch the itch that they can’t reach’. For instance, the quality of products must be impeccable and they need to be provided in timely fashion. Every tiny detail that our clients might demand must be handled with scrupulous attention. As we build trust through sincere endeavors to enhance in every aspect, we were able to fully experience the true communication with our clients.

Automobiles Are The Outcome Of Constant Cooperation Between POSCO And Its Clients! Is There A Special Motif That Sparked Your Interest In Automobiles?
I don’t recall a significant motif but I’ve been realizing many fascinating aspects of automobiles ever since I started working as an automobile engineer. One of the biggest charms is that automobile is the product of collaboration of a number of professionals from various industries and companies. Also, despite its high price as a consumer goods, I believe it is wonderful that automobiles can provide a topic for any conversation with anyone at anywhere.

What Is The Sales Status Of Auto Steel Sheets In Regards To GM Korea?
Even in the current status of increasing foreign steel products, POSCO Auto Steel Sheet Marketing Team has led to a situation where a large portion of GM Korea’s steel products are being supplied by POSCO. Also, we have recently established a global process which provides high-quality products with competitive price and continue to participate in technical collaborations required for developing a new automobile prototype.

What Is The Biggest Difficulty You Are Facing As A Salesman?
From last month, I have been managing steel sheet sales targeting Renault Samsung Motors and SsangYong motors. Though I am very excited about encountering new clients, when we consider increasing competition of production cost in the current market, I am always contemplating the best approach to accomplish a Win-Win outcome for both POSCO and the clients.

What Do You Wish To Do At POSCO In The Future?

Currently, I am in charge of domestic business at POSCO, but I would like to work on overseas export in the future. Although automobile companies and steel companies are already cooperating in various aspects, I believe that there are many more opportunities and possibilities to lead to an enhanced collaboration from production to completion. Therefore, I wish to continue the cooperative efforts with numerous more companies and people in the future.

According to Mr. Hyun-ju Lee, he always reminds himself of the very first day he started working as a ‘salesman’. By reading about Mr. Lee who is constantly striving and learning from past and present, we hope everyone can feel positive and motivated as you reach the end of this post!

Growing Need for Rust-free, Corrosion-Resistant Steel

Steel is an essential industrial material, but exposure to water, salt, or oxidation can cause it to rust. Rust and corrosion can drastically reduce the safety of buildings by posing a constant potential threat to their structural stability. Additionally, rust has a negative effect on the aesthetics of a structure and its surrounding environment. There has been a jump in interest and demand for corrosion-resistant steel to avoid the high costs of frequent maintenance and replacements.

POSCO Presents Ultra Corrosion-Resistant PosMAC Steel

POSCO’s undying focus on the research and development of steel material products has produced PosMAC, a revolutionary plated steel sheet that is five to ten times more resistant to rust and corrosion than existing versions. The product is an upgrade of existing generic plated steel imbued with resistance to the corrosion of the cut edges that is superior to competing products in strength and resilience. This innovative product, PosMAC represents over 30years of technological progress in the field of steel plate production, as well as POSCO’s commitment to the research and development of ultra-resistant steel plates for the past six years.

PosMAC, or POSCO Magnesium Alloy Coating Product, is an ultra-corrosion resistant alloyed steel plate developed with unique POSCO technology. One of the world’s highest quality steel surface treatment products, PosMAC is five to ten times more resistant to rust and corrosion than existing alloyed steel plate products. Being less expensive than other corrosion-resistant material such as stainless steel, the revolutionary PosMAC steel is highly sought after not only for its strength and resistance but also for its affordability.

PosMAC: Resistant to scratches and steel cut edges corrosion

Existing rolled steel is vulnerable to steel cut edge corrosion

PosMAC is highly resistant not only to rust in general, but also to alkali, scratches and steel section corrosion, thanks to PosMAC’s superior steel plating technology. The magnesium in PosMAC’s plating accelerates the formation of highly stable corrosion products, which in turn forms a layer on the surface of the steel plating, preventing the steel plate from corrosion. While existing rolled steel are vulnerable to steel cut edge corrosion, PosMAC’s steel edges form a protective layer from corrosion products after six months, preventing steel cut edges from forming corrosion. This makes PosMAC five to ten times more resistant to corrosion compared to existing products, as well as giving it resistance to steel cut edges corrosion, a unique advantage not found in other general plated metal products.  Furthermore, PosMAC is highly resistant to alkali and ammonia, which makes it highly suitable for use in livestock handling facilities or in situations where components are in contact with concrete tar.

Let’s have a look at the various applications of PosMAC technology

Reducing production costs of solar panels

PosMAC is being highly sought after in the solar panel market for its high resistance and affordability

The demand for highly durable PosMAC is on the rise in the solar panel industry where solar panel structures are expected to be fully functional for up to 20 to 30 years from their installment. We expect PosMAC to become highly popular in the solar panel market: the plated steel used in the manufacture of supporting fixtures of solar panel structures are extremely costly, and using highly durable and resistant PosMAC steel will significantly lower costs by removing the need for frequent replacement.

Manufacturing automobile motor cases with PosMAC

PosMAC is used for motor cases which require extra-high resistance and durability

POSCO is also offering PosMAC as a solution for automobile components that require extra-high resistance and durability such as ABS, power windows and motor cases. PosMAC will take the lead in a new era of more durable and long-lasting automobiles!

The PosMAC Initiative: Expand PosMAC’s applications

PosMAC has been expanding its market presence mainly in agriculture/livestock/fishing, solar panels, motor cases, and road facilities. Now it’s time for the next phase of the PosMAC Initiative: plans to expand PosMAC’s applications to home electronics and automobile steel plates are under way!

POSCO takes the lead in a new era in the steel industry with PosMAC, the revolutionary product developed through years of research and development. POSCO will continue its commitment to leading the global steel market with the highly resistant and durable PosMAC.

I’m under a lot of pressure at the moment to make multiple big decisions that will have a deep impact in the company’s future. POSCO’s current financial structure is faced with various issues, to say the least. In order to break through this critical moment, we must manufacture and sell a lot of steel and generate a lot of profit. This need led us to our new initiative that is “Solution Marketing.” Solution marketing, in our terms, is bringing our unique hardware – steel products – and software – insights on how to use a given technology to the greatest effect – together. The idea is to secure customer loyalty by forming a sound solution with these two elements. 

Next in the line of focus is new business. I keep a look out for important new projects which seem promising for the company, and put concentrated investment on them. In addition, I focus on employees as well as new business. I always care about employees and their needs. I also think of what I can do to make my employees become happier. I do not agree that a higher income is the only thing that employees care about and want from the company. I always try to make POSCO become the best company, and that all employees are happy.

The team of Innovative POSCO 1.0, established on January 29, 2014, has been working under the new vision POSCO the Great on discovering 380 new business projects until March 14. POSCO employees engage in short term “Quick-Win” projects in stages. By cutting down the number of senior management and introducing project specialists named POSCO Certified Professionals (PCP) or an executive-level project manager, we were able to radically boost decision making speed by trimming down the organization and establish a project-based management infrastructure. In addition, a revamp in the organizational structure brought the number of divisions down from six to four, which are: Steel Business Division, Steel Production Division, Finance and Investment Division, and Corporate Infrastructure Division. We also installed the Value Management Department under CEO supervision to support the successful implementation of Innovative POSCO 1.0.

On May 16, we transferred all discovered new projects to each division, and the head of each division organized the team in charge and established detailed kick off plan to implement and discover Quick-Win assignments. The ‘Great Work Place Commission’ is taking steps to elicit real and tangible improvement in the workplace by merging and discarding certain administrative processes and education policies. Setting EVA (Economic Value Added) as a core performance indicator of POSCO and POSCO group affiliates, efforts are being made to lay the foundation for upholding company values and bolster work engagement by increasing the influence of evaluation.

Revolutionary projects that will change the future of POSCO will soon be implemented in full swing. I hope all of you will regard yourselves as the owner of POSCO and participate enthusiastically and voluntarily.

Although we have been making significant investments both domestically and internationally, sluggish return from large investments during the past few years took a toll on company value and credit ratings. Therefore, I have concentrated on ‘Innovative POSCO 1.0’ to overcome the current problematic situation and prepare the next 50 years of POSCO under ‘POSCO the Great’ since I have taken CEO position. I will change the POSCO’s management paradigm, and it is going to be the big transform from the external growth to internal growth.

Utilizing cash generated from the Chinese super-cycle, POSCO has made aggressive investments for a revival of economic growth for the past few years. Despite massive investments, however, sales and profitability in the steel business dwindled due to deteriorating management conditions. I expect the new projects will take time to be settled because all new projects are at an early stage. Under unfavorable circumstances, all employees and executives should work together to improve internal stability and secure profitability. In light of this, I am planning a full re-evaluation and revamp of POSCO group’s investment businesses.

Firstly, steel investment will prioritize on boosting core steel competitiveness by developing high value-added products, enhancing solution marketing, and establishing a global customer service infrastructure. As for global investment, businesses that are currently under review will be subject to a full-scale re-evaluation, with the main priority being the early stabilization of international production sites which had been adding a burden to the group’s financial structure. In addition, new growth business will promote future mega growth engine through select and concentration. I believe in ‘source material’ and ‘clean energy’ will be the future growth engine for POSCO under the evaluation of technology competitiveness and business fitness of what we have been working on. As POSCO has been leading national economic development with steel business which is the ‘rice for industry’, source material and clean energy business is expected to be a new engine to lead POSCO’s mega growth in the future.

For the “POSCO the Great” ideal to work, we need creative people. There are two types of the creative individual I have in mind: the Expert and the Molder. The Expert creates novel complex technology by utilizing his/her experience and knowledge accumulated throughout a long and focused devotion to a certain field. The Molder fuses professional knowledge from multiple fields to form new values. Because it is difficult for a single individual to have both qualities, we plan to select and support the growth and development of promising individuals for each type.

New employees are trained to become the Expert through the PCP (POSCO Certified Professional) program. A PCP is a talented individual who is knowledgeable of key operations/installations/control technology and is responsible for carrying out strategic tasks and solving technical issues that may emerge in the field. We plan to select experts in commerce, taxation, technical support and overseas as PCP and actively support them as key figures. Meanwhile, we are training the Molders by circulating them in various fields. The Molders are talented individuals who have work experience in various fields including operations and maintenance engineering. Additionally, we are providing education opportunities including MBA/study abroad programs, e-learning, and humanities classes for leaders. We believe that individual effort and an enthusiastic attitude are as important as organizational support. My philosophy in the development of human resources is to establish a virtuous cycle of employees becoming creative experts by utilizing their company’s programs, and their excellent work contributing to the overall increase in the company’s competitiveness.

The most rewarding work was doing focused research on automobile steel, the kind of steel which became POSCO’s lifeline since the 2000’s. I think that period was when we began to conduct “real” research which allowed us to develop unique products and improve POSCO’s competitiveness and productivity. The person who made all this possible was the RIST director Kang Chang-oh. When he was the manager of the steelworks, director Kang used to complain that “researchers are goofs who do nothing but spend money on going to overseas exhibitions.” I seriously considered changing my job when he came over as director of the research center, but he turned out to be a man with an extraordinary sense of responsibility. When he was at the field, he complained about the research center because it did not contribute much to improving the field. When he came to the research center, however, he actively sought for ways to improve the role of the research center. Director Kang and I had many conversations, and the result of our debates on which technology to develop for the future of POSCO was that we should focus on automobile steel. I believe that behind POSCO’s world-class steel today lies director Kang’s automobile steel-focused research policy.

Located at Gwangyang is the Automobile Rolled Steel Research Center, constructed in January 21, 2003. There used to be a heliport for VIPs at the façade of the research center. The problem used to be that we needed a place for an experiment lab facility to develop automobile rolled steel. While sharing ideas in a corridor with director Kang on where would be a good place to install the facility, I looked at the heliport outside the corridor and said, “That heliport would be nice.” Director Kang responded with a silent nod. The next day, he gave me a call from Seoul ordering me to get the automobile rolled steel research center built on the heliport. He had submitted a proposal and gotten approval from the president as soon as he arrived at Seoul. This is how the Automobile Rolled Steel Research Center at Gwangyang was born, and the center became the seed for POSCO’s competitiveness in the field of automobile steel today. It is indeed very rewarding.

POSCO’s technological levels have changed since the year 2000. Prior to 2000, we simply borrowed new technology from Nippon Steel or Thyssen-Krupp. Afterwards, however, we began to develop unique POSCO technology that no other company had. Unique technology is POSCO’s biggest asset in shaping future competitiveness. Products like automobile steel and electrical steel were developed after continuous research. In short, it was POSCO’s competitiveness was spearheaded by its unique technology. The pride of the researcher is to develop a unique product through single-handed research instead of simply borrowing technology. Of course, R&D alone cannot lead to the development of new technology. Mutual cooperation between the engineer at the field and the researcher is needed for a new product to actually be produced, and for that product to be sold cooperation with the marketing team is also necessary. I think such mutually cooperating system is the source behind shaping the future. POSCO’s competitiveness is the integrated and close cooperation of R&D, Manufacture and Sales.

First of all, I thank them with all my heart when I meet them at the field. They all sweat profusely while dealing with melted iron in extreme heat (1,500~1,600℃) with many unexpected risks around, and also sacrifice themselves by working in the cold weather depending on the location. If I am asked as to what I want from them the most, I always answer that I really hope every single employee to work safely. Even a trivial finger injury can make daily activities difficult. Losing one’s life is the disaster of disasters. An entire family may be affected with despair. That said, safety is the most important element. It is my hope to make a work environment that every employee can work safely. I repeat this idea over in my head whenever I go to the field and see my employees’ faces and shake their hands.

It might be an overstatement to say this is my life philosophy, but there are two guidelines that make me behave in a certain way. First of all, I always make an effort to make things better. So, I always keep the phrase ‘No pain, no gain’ in my mind. One cannot see the joy of pleasure without making an effort and experiencing how bitter it was to go through hard times. The saying always keeps me from getting lazy. In terms of personal relationship, I always keep the saying ‘People in glass houses shouldn’t throw stones.’ Everyone is different. Therefore, it always causes trouble when trying to understand others in one’s own perspective. This is the saying that I have in mind when I try to understand others in their own perspectives. Also, I aspire to be like ‘water.’ Water always changes shape depending on its container. Water is life’s fundamental element and exerts great force when focused on a singular point. This is how I want to be.

My dream is to make POSCO competitive and also a company that is much prosperous for the next generation. This might be the same to all the CEOs and also to employees. Speaking of the corporations, people tell to ‘manage the company for making the profit of stakeholders as high as possible.’ To me, I consider the role of CEO to make employees inspired and motivated to work. When employees are happy and satisfied with what they do, it automatically brings the profit to stakeholders. If every single employee at POSCO is happy and satisfied with what they do at work, POSCO will definitely be grown. In this sense, ‘the company with employees that are happy with work’ is the most elements for POSCO to be the outstanding company. I would be the CEO to make such a company.

POSCO is different from most of other corporations since our company was made by funds from a claim to Japan as a sacrifice of our ancestors. Therefore, we have to be responsible and in charge of making the way out for POSCO. I would say about three spirits to make such dreams come true. The first is the *Right Turn Spirit as the foundation of our company. *Saemaeul spirit that encouraged us to be well off when we were poor back in the days is the second one. Lastly, the phrase of POSCO ‘Resources are limited, Creativity is unlimited’ is what we should have in mind. Company only grows when something new is accomplished by creativity. Making new technology and methodology based on creativity along with new marketing strategies are specifically needed. Hereupon, everyone at POSCO shall make the greatest effort to build competitiveness of POSCO. POSCO will be developed and grown further if right turn spirit, Saemaeul spirit, and creativity are added. I sincerely hope employees of POSCO to actively participate in ‘POSCO the Great’.

*Right Turn Spirit: The ‘right turn spirit’ comes back to the time when POSCO founder Park Tae Jun was working to construct the first iron and steel mill. The name comes from his legendary saying, “It is the matter of life and death. If we fail, we’ll come out of our offices, turn right, and drown ourselves into the East Sea. We never fail. Never.”

*Saemaeul Sprit (Saemaeul Undong Movement): The new community movement for rural development in South Korea in the 1970s led by the government.