Technology isn’t just securing the safety. Also boosts athlete’s motivation

Pride of the Korean-Made

The passion of the athletes seen at The PyeongChang 2018 Paralympic Winter Games is unforgettable. It is to this end that POSCO has devoted itself to supporting athletes with disabilities.

When it comes to sports, even small improvements in technology or changes to the gear may bring about huge differences. Having supported the national para ice hockey team since 2016, POSCO developed lightweight sledges with improved tolerance shock absorption for the Korean para ice hockey team so that the athletes could focus more on the game. This made POSCO the first company in Korea to manufacture athletic gear for national Paralympic teams. Equipped with motivation and new gear, the Korean para ice hockey team achieved an amazing Bronze medal in The PyeongChang 2018 Paralympic Winter Games.

SEE ALSO: Parallel: Shining a Spotlight on the Korean National Para Ice Hockey Team

With memories of The PyeongChang 2018 Paralympic Winter Games still fresh, South Korea recently observed the National Day of Persons with Disabilities on April 20. In recognition of this day, POSCO interviewed Jin-Owan Jung, head officer at the Korea Paralympic Committee Icheon Training Center and manager of the Korean Paralympic team the man who led the Korean team at The PyeongChang 2018 Paralympic Winter Games and one who both understands and represents the interests of people with disabilities in Korea.

“It’s Not Just About Overcoming Your Disability But Accepting It.- Jin Owan, Jung”

He emphasized the recognition and acceptance rather than struggling

Accept who you really are

Jin-Owan Jung was 22 years old when a car accident left him paralyzed from the waist down in 1987. Undeterred by the accident, Jung set his eyes on becoming an athlete for the Paralympics when he saw the Seoul Paralympic Games in 1998. He won 2 medals – a gold and a bronze – in Shooting in the 2000 Sydney Paralympics Games. After retiring as an athlete, his passion for sports drove him to take on a new role in administration. The experiences gained as a Para sport athlete and also by interacting with others with disabilities, gave him a perception that acceptance of one’s disability is more important than struggling to overcome it.

He agrees that the situation is getting better but still needs more support such as financial aspects

You are not alone

The PyeongChang 2018 Paralympic Winter Games was a huge success in that the athletes’ passion inspired positive change in the society’s views toward people with disabilities. Jung noted that the infrastructure for people with disabilities in The PyeongChang 2018 Paralympic Winter Games was much improved in comparison to past games. However, he believes there is still room for improvement. Additional and sustainable social support is necessary to ensure those with disabilities can enjoy living conditions equal to those of other citizens and have an equal share in the development of their societies.

POSCO supports not only their technology but also financial aid

How to support?

Jung explains, “Financial support is not everything but it is important in certain circumstances.” POSCO has been a proud sponsor of athletes with disabilities and has provided roughly $2.6 million in support of Para sport since 2011. This year, POSCO donated $370,000 to the Korean Paralympic team in honor of their effort and passion.

‘Harmony’ is the element that POSCO will promise for better society

Jung believes that sports might be the key to resolving discrimination against people with disabilities. However, this can only be accomplished with active contribution from supporters. POSCO will continue to support Jin-Owan Jung’s dream of achieving social harmony and creating a society where having a disability does not impede one’s quality of life.

CEO Kwon explores CES 2018

As such, CEO Kwon made his first official visit to the 2018 Consumer Electronics Show (CES) in Las Vegas earlier this month to stay on top of the latest trends in connectivity and smart solutions that can be applied to the manufacturing process in smart factories.

SEE ALSO: POSCO CEO Ohjoon Kwon Visits CES 2018

Ultimately, a smart factory for POSCO would entail using smart sensors to pick up data, smart analysis through AI and automated production processes. Moreover, the smart factory would store and analyze its big data and apply it to make future improvements and prevent malfunctions. Aligned with many of POSCO’s business growth engines, major topics and themes at CES 2018 included smart homes, smart cities, autonomous cars and AI, and more than 3,900 companies put forth their best innovations.

Smart Connectivity

As more and more cities undergo smart transformations, the next big trend will be data collection and analysis through 5G connectivity. It was no surprise to see numerous innovations in smart transportation, smart grid, public safety, healthcare, data analytics and more at CES 2018. Moreover, city officials from early-adapting cities such as Kansas City, Miami and Las Vegas took to the stage to discuss their cities’ smartization plans. Some of the topics discussed included using GIS mapping software, smart construction, inclusive technology and autonomous transportation to enhance citizens’ productivity, efficiency, safety and well-being.

CES 2018 was a platform for smart city discussion. (Source: Bosch)

CEO Kwon visited related booths to learn about new technologies POSCO could apply to its businesses. Currently, POSCO’s smart factories are run by POSCO ICT’s smart platform called PosFrame, which allows the factory to apply a digital genome map to operations via data collection, instantly convert smart factory initiatives in domains, act as a common platform for new technologies and apply the same, standardize smart factory model to other facilities through reusable software.

Also at this year’s CES, POSCO ICT signed an MOU with DPR Construction, a leading smart construction company to apply PosFrame to construction sites for more efficient, cost-effective and smarter construction processes.

Smart Transportation

Another major theme at this year’s CES was mobility. Namely, autonomous and electric mobility. Companies from all across the board from traditional car manufacturers and software companies to gaming companies lined up to showcase their new innovations.

Even as the market for sustainable EVs and autonomous EVs look to expand in 2018 and beyond, EVs only make up about 1 percent of the global fleet of cars and there’s still a ways to go before EVs become the norm. Drivers need to feel safe in their EVs or autonomous EVs, want greater range on a single charge and need to see more charging infrastructure in their communities before making the switch.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

What’s more is that just because a vehicle runs on electric batteries, it doesn’t automatically mean the vehicle is eco-friendly or transmits less harmful emissions. Manufacturers and consumers alike have to take a lifecycle approach to assess the car’s impact on the environment from production to end of life recycling.

POSCO works with numerous partners to develop leading solutions for electric vehicles.

That’s why POSCO is working with automakers to come up with vital solutions in the auto industry for a greener future. It supplies partners with an advanced high-strength steel (AHSS) called POSCO GIGA STEEL that is both lightweight and super strong, allowing cars to travel with less energy without compromising passenger safety.

POSCO is also a lithium provider and has developed an innovative technology to speed up the extraction process, saving time, costs and damage to the environment. It also works with car makers to apply premium electric steel to partners’ electric motors to increase efficiency and cut costs.

With so many exciting new innovations and technologies surrounding EVs, POSCO will undoubtedly play a significant role in ensuring automakers have the tools they need to realize a green future.  POSCO will work to stay ahead of newly emerging technologies to enhance the efficiency, sustainability and performance of all of its solutions.

Although wire rods are not always in the spotlight, they are widely used in many parts of a car. Steel wire rods are processed into parts for the steering and suspension systems, tire cords and bearings.

However, not all wire rods are the same, and improvements in production technologies can increase automotive performance, safety and cost-effectiveness. POSCO’s world premium steel wire rods provide such solutions to its automotive partners as the global demand for automotive wire rods continues to grow.

Take a look at the video below to see why more and more automakers are choosing POSCO’s wire rods, and where they can be applied.

Wire Rods in the Steering System

The steering system is what allows the wheels of a heavy vehicle to move in various directions and angles, with little force exerted by the driver. If the driver were to steer the road wheel directly, he/she would have to apply 16 times more effort. Fortunately, the movement of the steering wheel passes through the steering system of pivoted joints to the road wheels, which minimizes the burden of labor on the driver. The most common type of steering system is the rack and pinion, pictured below.

Wire rods make up the steering system of a car. (Source: Tires and Parts)

Traditionally, wire rods used for the pinion shaft, rack bar, ball housing, tie rod and tie rod end of the steering system have to be heat treated twice during production. POSCO developed a way to take out all the heat treatment from the production process, allowing manufacturers to cut costs significantly and reduce unwanted emissions.  

Wire Rods for Springs

Automotive springs are part of the suspension system of a vehicle, which determines the level of control the driver will have, as well as the level of comfort. The spring coils compress and elongate along with the movement of the wheels to absorb shock and keep the car body level.

Coil springs are part of the suspension system of a car. (Source: Pakwheels)

As such, the wire rods that make up the suspension system have to have high tensile strength and fatigue resistance. POSCO’s wire rods for automotive springs are made of ultra-clean alloying steel and have a 2.3 GPa tensile strength versus the average 1.9 GPa of traditional wire rods. When applied to the engine valve springs and coil springs for suspensions and stabilizer bars, it enhances the overall performance, safety and lightweight features of the vehicle.       

Wire Rods for Tire Cords

Wire cords undergo an extensive drawing process to be processed into tire cords, also known as tire belts. Tire cords are important because they act as the chassis of the tire, giving it strength and resistance against punctures. It also allows the tire to stay flat for maximum contact with the road.

POSCO’s wire rods during the production process. (Source: World Steel Association)

The quality of tire cords lies in its strength, elongation and stiffness, and require especially clean and high-strength steel to produce. POSCO’s wire rods for tire cords are also highly workable for producing extra-fine wire, meaning car manufacturers get the added benefit of lightweight along with enhanced safety and performance.

Wire Rods for Wheel Bearings

Wheel bearings are under a lot of pressure, literally. It bears the weight of the vehicle so that the wheels can turn as smoothly as possible with little friction. If a car’s wheel bearings don’t function properly or wear out, the tires can rub against the axle, the rubber can burn due to friction, the wheels can malfunction and cause screeching sounds. It is important for the bearings to be highly wear and fatigue resistant to minimize work hardening, crack and deformation. POSCO’s innovative production technology includes numerous tests and quality checks to ensure that wire rods for bearings are in perfect condition.

Wheel bearings bear the weight of the vehicle so tires don’t have to. (Source: MOOG Suspension Parts)

Recently, Research and Markets predicted a compound annual growth rate (CAGR) of 3.50 percent for the global stainless steel wire rod market from 2017 to 2021. This is a telling sign that automakers will continue to seek high-quality wire rods in the midst of growing investment in electric and autonomous vehicles. Now with its second overseas facility up and running, POSCO will continue to meet the global demand for world premium automotive materials and provide innovative solutions to its partners.  

Cover photo courtesy of Steel Intelligence.

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Read how these megatrends and the expansion of the four largest steel-consuming industries have driven the growth of the steel industry from the last fifty years and will continue to play a crucial role.

Megatrends and their impact on the steel industry

Future Cities and Changes in Steel Materials

Urbanization is a key driver in the development of the global construction industry and will further accelerate in the future with rapid industrialization in developing countries and the shift to a knowledge economy in advanced countries.

Within the overall shift toward urbanization, many countries are actively crafting policies to develop their cities as globally competitive megacities. There is an increasing number of megacities with over 10 million inhabitants as the competition paradigm shifts from competition among countries to competition among cities.

Also, with a growing sense of urgency in improving the environment in terms of ozone depletion, climate change and energy and resource exhaustion, eco-friendly, green cities are emerging as a new trend.

Lastly, smart cities, characterized by digital transformation and energy revolution, will rapidly expand in the future drawing on the Fourth Industrial Revolution.

Following the ongoing and emerging trends of urbanization and future cities, new advanced steel materials are required to accompany emerging trends and accelerate the development of megatall, eco-friendly and smart products. Conventional steel materials for construction, such as steel bar and section, will improve in functionality with higher strength, thermal conductivity and better sound isolation. They will also be developed as composite materials and new materials such as carbon nanotubes and shape memory alloys will be widely deployed in construction processes. However, as construction costs (labor costs and the use of high-strength steel materials, for example), increase, steel content per unit of construction investment is expected to decline.

A New Mobility Paradigm

Led by high-income earners, lower car prices and improved road infrastructure, the key trend for the automotive industry is motorization. Today, automobiles are no longer just a means of transportation but becoming a major arena for IT competition with the rise of electric vehicles, robotic vehicles and new mobility services.

As a response to global warming, electric vehicles and energy-efficient self-driving cars are becoming increasingly widespread along with the rise of new innovative mobility services, such as robo-taxis and self-driving mini-buses.

In the case of EVs, less auto parts will be required as metal parts such as powertrain components – the engine, vehicle intake and exhaust system, and transmission – will be replaced by batteries, motors, and electronic parts. As cars are made lighter to improve driving range, alternative materials such as aluminum and CFRP are being used in some luxury lineups.

In order to retain its competitiveness and also meet increasingly strict environmental regulations, the steel industry is developing lighter and stronger steel materials such as advanced high-strength steel (AHSS) to replace traditional steel products. Steel, a strong and economically competitive material, remains an attractive choice for both EVs and self-driving cars.

Recovery of the Shipbuilding Industry

Technological advancement as a result of the Fourth Industrial Revolution and changing environmental regulations will bring considerable changes to the shipbuilding industry.

The shipbuilding industry, which boomed in the 2000’s, experienced a downturn after the 2008-09 financial crisis. Although the oversupply will linger until 2025, the shipbuilding market will then turn to an upswing with increasing growing global trade and rising demand for ship replacement.

With the development of ultra-large container ships, LNG-fueled ships, electric ships, CO₂ carriers, polar ships, and environmentally–friendly equipment, high-strength steel for ultra-large and lighter ships and high-strength low-alloy steel for safe and affordable LNG and CO₂ storage tanks are required.

As vessels become larger and lighter, the steel intensity of ship’s tonnage will fall. Steel intensity is expected to decline due to larger and lighter vessels.

Global Climate Action and Energy Transition

As a response to global warming, renewable energy is increasingly in demand. In fact, it is no longer being referred to as “alternative” energy but “mainstream”. The International Energy Agency (IEA) has predicted that the share of renewables within global power generation is expected to rise from 23 percent in 2014 to 37 percent by 2040.

The renewable energy sector is also adopting various types of steel products. The tube tower, which accounts for 65% of the weight of a wind turbine, is made mainly of steel, while thin stainless steel sheets and frames are required for solar panels. This wide application of steel products offers additional business opportunities to steel companies.

Meanwhile, the share of fossil fuels within primary energy consumption will fall from 81 percent to 74 percent over this span. However, the decline will be gradual due to population and economic growth in emerging countries and fossil fuels will continue to play a dominant role in the energy sector in terms of quantity of consumption.

Steel companies must target new markets by developing innovative steel products for the microgrids and energy storage systems which will grow alongside renewable energy.

The Steel Industry Over the Next Two Decades

Over the next two decades, the steel industry will face the following four challenges: slowing steel demand due to decreased steel intensity across major steel-consuming industries; a need for more advanced steel products; upgrading to eco-friendly and smart steelmaking processes; and changes in manufacturing based on the Fourth Industrial Revolution.

Accordingly, it is imperative that the steel industry boost its capabilities for continues product and process innovation and build a sound steel ecosystem through partnerships with steel-consuming industries.

To this end, POSCO is not only investing in the development of an eco-friendly rolling process but also in sustainable development including energy conservation and recycling technologies. In addition to factory automation based on IoT, big data and AI, POSCO is working to increase the application of smart technology internally as well as externally with its partners and affiliates.

It is an exciting time for the steel industry as it continues to transform along with the ongoing and emerging megatrends.

Download the full version of POSRI’s Asian Steel Watch journal for more at POSRI’s official website.

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Below, The Steel Wire speaks with Choi Jaeyong, Manager at POSCO’s Environment & Energy Business Department and currently a research fellow at the World Steel Association, to discuss sustainable manufacturing trends in the steel industry as well as the evolving automotive steel industry.

What are some of the most exciting initiatives taking place in the steel industry to combat greenhouse emissions and to create more sustainable production methods?

First, we must realize that one of the main causes of greenhouse emissions comes from using fossil fuels for the reduction of iron ore. Therefore, any ideas to improve this process and reduce the use of fossil fuels will also help reduce greenhouse gases. One of the most exciting initiatives taking place in the steel industry is replacing coke with hydrogen on a partial basis as a reduction agent. However, this is only effective if the hydrogen is produced by non-carbon energy sources.

[clickToTweet tweet=”“The sustainable life cycle of steel helps automakers recycle old automobiles into brand-new cars.” ” quote=”“The sustainable life cycle of steel helps automakers recycle old automobiles into brand-new cars.” ” theme=”style6″]

In addition to finding fuel alternatives for blast furnaces, advancements in smart factory technologies, such as AI and IoT, are also helping create more sustainable production methods while significantly enhancing the decision making process. For instance, the digitalisation of the control systems to reduce variations in process parameters has helped reduce energy usage as well as unexpected defects. Moreover, IoT can help employees at worksites by preventing industrial accidents with regards to machinery and equipment.

What do you think steelmakers should do to become more energy efficient?

First of all, steelmakers should work to achieve best-in-class operational standards across all processes. This includes improvements in engineering, operations, reliability, yield, health, and safety. Second, employees should stay up-to-date on the latest developments in steel production to ensure that advancements are shared utilized across the entire industry. Third, we must use collaborative and innovative R&D techniques to make improvements throughout all processes. POSCO is already practicing the first two very well while the third continues to be a priority for POSCO CEO Ohjoon Kwon.

I believe there is no one single solution for energy management; however, if those of us in the steel industry remain enthusiastic about finding creative energy saving solutions, new ideas will continue to arise and evolve.

From your experience working with POSCO’s energy management systems, can you tell us what POSCO is doing to become more energy efficient?

Pohang Steelworks is one of the most intricate modern steel manufacturing sites in the world. We continuously look for improvements throughout all processes including in the combustion, gas, corrosion, mechanical, instrument & measurement engineering practices, and statistical analysis techniques. If problems are found they are analyzed to eliminate and prevent faults or delays.

Also, at Pohang Steelworks, each facility has their own characteristics from raw materials to end products. Producing coke, sinter, and pig iron is a near continuous process, but producing steel is a batch process. Respective rolling mills have different rolling schedules and maintenance periods. Upstream processes, such as the blast furnace, have a fixed maintenance schedule. Why is knowing the characteristics of the process important? The processes create by-product gases and if there is a break in the use of the gases, the furnace will need to be flared once the gasholders are full. This has a significant impact on the emissions intensity for the site. Pohang Works uses many kilometers of pipelines and multiple power plants in order to utilize all the by-product gases and my role is to eliminate the flaring ratio and to operate energy facilities with high efficiency. The most important job is to maintain the facilities so that they are in good condition and can operate when needed.

Inside steelmaking plant of POSCO (Image courtesy of World Steel Association)

For sites like POSCO, energy needs to be viewed holistically to be able to create a balanced energy generation system, which helps avoid waste in gas & electricity. There is a project currently underway to build a new integrated energy management system that will help optimize energy use and prevent waste.

More and more automakers around the world are focusing on sustainability and emission reduction. What kinds of benefits can sustainable materials like steel bring to the auto industry? Also, what is POSCO doing to help automakers manufacture more sustainable vehicles?

Steel is better than alternative materials like aluminum and carbon fiber composites for various reasons. Properties of steel vary greatly but it’s always adaptable to making new products for different end products. When the electric arc furnace (EAF) melts steel, it can be formed into a new product without a loss of quality. On the other hand, other alternative materials composed of alloys at a lower temperature remain as molten alloys, and they require additional processing to separate the various elements from the original material, which cannot always be done without a loss of quality. For steel, this is not a problem. Also, because of the sustainable life cycle of steel, automakers can recycle old automobiles into brand new cars without a reduction in quality.

Additionally, by replacing conventional steel materials with advanced high-strength steels (AHSS), drivers can reduce fuel usage by as much as 5% and greenhouse gas emissions by 6%.

POSCO has developed numerous lightweight solutions to enable automakers to produce lighter, more eco-friendly products with no reduction in strength and durability. Using more sustainable materials like POSCO GIGA STEEL can bring numerous benefits to the auto industry as it offers automakers the ability to produce stronger cars with fewer emissions.

For more information on POSCO GIGA STEEL, take a look at the 6 reasons why POSCO GIGA STEEL is Ideal for both automaker and consumers.

Q1. Despite several market challenges heading into 2016, POSCO Maharashtra has become POSCO’s most successful subsidiary. What would you credit with this quick turnaround?

Manish Kochar: At the beginning of last year, there were many import restrictions imposed by the government of India, and at the start of 2015 a lot of people were not sure whether we could even survive. We were merely a POSCO group company that was buying from POSCO Headquarters and selling in India. But we quickly adapted to the situation.

Because of the high costs of materials, we began to develop partnerships with local mills. Our Quality Assurance and Product Departments worked with these local mills to improve standards and help guarantee the same quality that our customers expect. This also reduced our inventory levels, which in turn reduced our inventory costs.

This was a very good move and I appreciate that management had the foresight and ability to make these collaborations possible. Otherwise, our journey would have been very different.

[clickToTweet tweet=”‘We worked with local mills to improve standards and help guarantee the same quality that our customers expect.'” quote=”‘We worked with local mills to improve standards and help guarantee the same quality that our customers expect.’ – Manish Kochar” theme=”style6″]

Chetan Waghchoure: First of all, we were able to succeed because of the direction from management. We have clearly defined strategies for each segment in terms of targets, market, and pricing, which are constantly under review. Because of this, we have been able to make improvements in production, logistics, and quality.

From 2015-2016 we were barely producing 80-90 thousand tons per month, but today we are reaching over 140 thousand tons each month. Additionally, we were able to cut the production process from two months to just 30 days. And, we made an effort to move away from small market segments where the prices are low and competition is very high. Instead, we changed our focus to producing high-quality products for auto, home appliances, and panels. This move gave us higher margins and more market share.

“Increasing the operating ratio helped reduce the operating cost and that indirectly affected our profitability.” – Ajay Telrandhe, Quality Assurance

Ajay Telrandhe: In addition to what Chetan and Manish have said, in the last 3-4 months, we have increased the operating ratio and plant utilization. While we were operating at around 70-75%, now it’s at almost 90%. Increasing the operating ratio helped reduce the operating cost and that indirectly affected our profitability. Because of this, we were able to enter into more non-auto segments and produce more exports.

Q2. POSCO prides itself on producing the most advanced, high-quality steel around the world. How important is quality at POSCO Maharashtra and how are you able to maintain quality standards with such rapid growth?

Chetan Waghchoure: If I supply material at a cheaper rate, the customer will come back one time. But if I supply quality material, they’ll come back again and again. So that’s what we’re doing right now. Although our products might be priced a bit higher in the Indian market, we are supplying quality material and our customers continue to be loyal because they understand that value.

“If I supply material at a cheaper rate, the customer will come back one time. But if I supply quality material, they’ll come back again and again.” – Chetan Waghchoure, Sales

Ajay Telrandhe: POSCO Maharashtra has very advanced inspection systems. From surface inspections to mechanical testings to calibration – those are all constantly maintained so that we can ensure delivery of uniform products to our customers.

Also, in the next few months, we will be adding an AI system for zinc coating. Maintaining a consistent coating weight for automotive steel is a highly specialized process and prone to error. By integrating advanced AI technology, we will be able to reduce waste and ensure consistency.

[clickToTweet tweet=”‘…if I supply quality material, they’ll come back again and again.’ – Chetan Waghchoure” quote=”‘If I supply quality material, they’ll come back again and again.’ – Chetan Waghchoure” theme=”style6″]

Manish Kochar: One of the most important ways we are able to offer higher quality control is in the way we manage our supply chain for automotive customers. There are three to four automotive hubs in India and for all 3 locations, we have dedicated POSCO-owned service centers. Before POSCO began collaborating with the local mills, there was no integrated logistics plan so mills in one part of India were supplying products on the other side of the country. Now, India is a big country so it was impossible for them to manage any type of dynamic, just-in-time delivery supply chain. Because of POSCO’s superior supply chain management, we have created a very big gap between us and our competitors.

Also, nobody works in as much detail as POSCO does. At POSCO, we develop specific steel solutions for each product based on how the part will be used and in what capacity. In addition, we have separate application codes defined in our system that prevent us from providing materials that are not specifically designed for that part. Most of our competitors cannot do that, they simply provide similar materials for each part.

For global companies that value quality, POSCO is always their first choice.

Q3. How has POSCO’s Solution Marketing helped customers improve production processes and manufacture better products?

Ajay Telrandhe: We recently worked with Tata Motors and Royal Enfield to develop new fuel tanks. Tata Motors’ previous fuel tanks had a short life cycle and were prone to rusting with leakages while Royal Enfield was using galvanized electroplated material for their fuel tanks that was very expensive and had to be imported as it was hard to procure in India. So, POSCO worked with both companies individually and came up with a GA product with a chrome pre-razing coating. By making these adjustments in the production process, both companies have seen much better results with reduced costs and inventories.

“We are currently the only supplier in India who can provide galvanized steel at 0.48cm.” – Manish Kochar, Sales

Manish Kochar: One successful example was the time we worked with one of our customers to reduce the thickness of their Extra Deep Drawing (EDD) galvanized steel product for Dish application. At that time everyone was using 0.6mm thick galvanized steel, but the customer wanted it reduced to around 0.5mm. We met with our Quality Assurance Department with the goal of reaching 0.48-0.50mm. After planning, development, and testing we found that in addition to the reduction in thickness there was around a 10-15% reduction in weight as well – with no loss in stability. We are currently the only supplier in India who can provide EDD galvanized steel at 0.48mm.

Q4. How does POSCO Maharashtra plan to continue its success into the future?

Chetan Waghchoure: The Indian auto market is not yet saturated and it is still growing.  We see constant growth in this segment and expect to see new investment opportunities with many of our global clients including electric carmaker Tesla, KIA Motors, BMW, and SAIC-China. Having developed strategic locations throughout India has given us an advantage and helped us have an upper hand in the competitive automotive steel market. We are prepared and expecting continued growth in the automotive steel market.

POSCO Maharashtra is confident in the quality of products they can provide to customers as India’s auto industry expands.

Ajay Telrandhe: As India’s economy continues to grow, all of the global players will also have a presence in India. Because of this, the demand for steel will continue to rise. At POSCO Maharashtra, we are preparing for this opportunity. We will continue to develop our galvanizing line in order to meet increased demand while continuing to focus on delivering the highest quality products to all of our customers.

Manish Kochar: The government of India announced its National Steel Policy in April 2017 that focuses on improving per capita steel consumption in India both in the short and long term. The demand for automotive & home appliances is increasing steadily every year. POSCO is already an established brand worldwide, and more and more global companies entering the Indian market want to work with POSCO. As such, we will continue to provide a very high standard of quality for our customers.

[clickToTweet tweet=” ‘The global companies coming to India want to work with POSCO.’ -Manish Kochar” quote=” ‘The global companies coming to India want to work with POSCO.’ -Manish Kochar” theme=”style6″]

We have developed good relationships with local mills and consistently delivered high-quality products to our customers. We don’t see any issue with an increase in production and we don’t expect any gaps in quality as demand for POSCO steel continues to increase.

This interview was conducted as POSCO Group University held its Global New Leader Program in Korea. The Global New Leader Program brings together management from POSCO Family subsidiaries from all around the world so they can collaborate, share ideas, and develop new skills. This is just one global leadership program that POSCO organizes for its global employees. Find out more about POSCO’s global operations in our interviews with POSCO TCS in Thailand and POSCO China.

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Auto Industry’s Challenge to Meet Consumer Demands

Mileage, design, and emissions. Which do you consider the most when purchasing a car? It is difficult to say that one is more important than the others, and fortunately, POSCO GIGA STEEL offers unique benefits for each one to meet the needs of today’s auto industry as it faces increasingly strict demands on safety and fuel efficiency.

More than ever, the industry is requiring that a vehicle goes longer distances with less fuel, which means the car must be lighter.  Also, technological advances have enabled cars with more power, requiring them to be safer. Consumers also want a car that represents their personality, demanding vehicles with more sophisticated and elegant designs.

Cars now need to drive smoothly, burn less fuel, and ensure safety, all while boasting an elegant design (Image courtesy of Mercedes-Benz AG).

While there are other conditions that need to be considered, it is paramount that cars meet the following three conditions in order to satisfy consumers: fuel efficiency, safety, and design. But these demands are becoming increasingly difficult to meet, and the only solution is to discover a technology that enables all of the above. For safety considerations, in the event of a collision, parts of the car also need to absorb the kinetic energy and protect the passengers inside.

In addition to having a battery and electric motor, the electric car is different from standard cars because the battery is a part of the frame itself.

6 Types of POSCO GIGA STEEL Tailored for Different Auto Parts

A car’s body frame requires different steel products for specific parts (Image courtesy of Renault)

POSCO GIGA STEEL is an advanced high-strength steel (AHSS) that can meet these various demands. Let’s take a look at the different types of POSCO GIGA STEEL products and how each one is being used in different parts of the car.

Complex Phase (CP) Steel

Complex Phase (CP) steel is often used to make reinforced auto parts that require high crashworthiness ratings, such as sill side panels, bumper rails, and door impact bars. It plays an extremely important role in the car frame as it is highly resistant to dents or bumps. In the past, the side panels of race cars were purposely made to be thicker in order to prevent dents and protect the driver inside and this naturally led to the vehicle becoming considerably heavier. However, CP steel minimizes these disadvantages. In the event of an impact, cars made with CP steel retain its original shape considerably better than other car frames due to its high strength and also has an exceptional ability to absorb all of the energy while still exhibiting an impressive thinness. It is often incorporated into the sill side panels and door impact bars to allow for a more spacious design.

Dual Phase (DP) Steel

Dual Phase (DP) steel can be easily welded and deformed and boasts a high level of total elongation (the rate at which the material is stretched without snapping). DP steel is commonly used in seat rails or other lower body reinforcements that run underneath the passenger seat. The tensile strength is at least 980MPa, but because it also exhibits impressive ductility, it can easily be used for random spare parts.

Transformation Induced Plasticity (TRIP) Steel

Transformation Induced Plasticity (TRIP) steel first made its way into the auto industry about six years ago. As the auto industry is beginning to value lightweight cars more and more, TRIP steel has received more attention. It is mainly used in the inner parts of the car body. This part of the car needs to absorb shock and impact and also be flexible enough to be fitted around the complex inner structure of the car. With TRIP steel’s outstanding combination of strength and ductility, it is one of the most commonly used high-strength automotive steels in the auto industry today.

Martensite Steel (MART)

Because Martensite steel is naturally high in strength, thinner sheets produced from roll forming (a metal forming process in which steel is continuously shaped or formed until it reaches a desired cross-section) still retain the same level of performance as conventional parts. Thinner parts also have the added benefit of reducing the weight.

Hot Press Forming (HPF) Steel

Hot Press Forming (HPF) steel is a different class of steel made with a unique steel production process. Typically, as steel becomes higher in strength, it is more difficult to mold into the desired shape through conventional processes. However, through the HPF process, the steel is heated to 950℃ before press forming. At high deformation temperatures, steel sheets are very soft so that difficult shapes can be obtained easily. During forming, the heated steel sheet cools down rapidly in the die block, so that the resulting pressed parts have a very high strength level. Due to its combination of high strength and formability, HPF steel is often used in the B-pillar of a car which requires intricately shaped parts as well as the A-pillar roof side rails which are prone to damage.

Post Heat Treatment (PHT) Steel

The chassis that supports the car frame needs to be extremely durable and resistant to impacts or shocks on the road as its main function is to improve the ride quality of the vehicle.
In order to increase the durability and torsional resistance, the material needs to be quenched and tempered. Before going through the heat treatment portion of the process (quenching), the material can be easily molded into spare parts due to its reduced strength. After being molded, it is heated up to 950°C and then rapidly cooled by water. This is why PHT is called “post-heat treatment steel”. Due to its ultra-high strength, it also has lightweighting benefits and is typically used in a vehicle’s chassis, stabilizer bars in a suspension system, and torsion beams.

These six types of POSCO GIGA STEEL each have their unique advantages in terms of processability & strength, production cost, and ease of application. Compared to conventional materials, thinner pieces can be used while still retaining the same level of performance and strength. Due to these incredible characteristics, POSCO GIGA STEEL is able to meet the increasingly stringent requirements of the auto industry for safety and efficiency.  

Image courtesy of Renault

Researchers in the auto industry are constantly looking for a stronger, more formable material. As the auto industry undergoes another paradigm shift, POSCO GIGA STEEL will continue to offer unique solutions that can satisfy both automakers and consumers.

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Since the early 20th century, car manufacturers have realized the importance of using specific steel for specific purposes. Henry Souther of the New York Times reported in 1909, “The secret of the use of steel is to put the right steel in the right place.” Until fairly recently, automotive steel mostly consisted of weaker mild steels that were affordable and easy to form into parts, but innovations in advanced high-strength steels (AHSS) have given automakers more options when designing vehicles.

Today’s automakers and parts manufacturers must consider several properties of the steel they are using: formability, crashworthiness, and durability. Each plays an important role in how the car is made and how the car performs over time and during impact. Below we take a look at these criteria and why each is important for manufacturers when designing a car and its parts.

Formability in Manufacturing

Formability is a key aspect to any automotive material. If a part cannot be made, it cannot be used. Typically, to make steel stronger, automakers had to make sacrifices in weight and formability, and if manufacturers needed a material with more ductility they were forced to give up strength.

The first generation of advanced high-strength steels (AHSS) increased strength while decreasing weight, giving automakers the opportunity to use thinner steel sheets. However, as the steel became stronger it lost formability, making it difficult to mold into parts.

POSCO GIGA STEEL is formable so that it can be shaped into complex parts.

Development of the second generation of AHSS focused on improving formability and elongation; however, its commercial use was limited due to its high cost and tendency to produce delayed cracking at room temperature.

With the new third-generation AHSS, like POSCO GIGA STEEL, steel producers have been able to bridge those gaps by producing steel that is formable, strong, and durable.  

While the average car built in 1975 utilized just 3.6% medium and high strength steels, by 2007 that percentage had increased by more than 230% in large part because the practical uses of AHSS have expanded.

Crashworthiness is Key for Safety

Crashworthiness is one of the most important elements to consider when designing automobiles because it is directly linked to the safety of passengers. The crashworthiness of a car is affected by many things including its structural build, safety devices, and materials.

While crash tests of full vehicles are often performed when developing a new car, crash tests of automotive parts are not carried out as often. To bridge this gap, POSCO developed its own crash test simulation for auto parts using high-speed compression and bending.

Crashworthiness criteria such as energy absorption & fracture, collapse mode, reaction force, and mean load is evaluated to provide reference data for car design. With these tests, POSCO is able to provide dynamic material data to its customers in order to propose the most appropriate steel solutions that maximize safety for passengers.

SsangYong Motor designed the new G4 Rexton SUV with a body frame that contains 63% POSCO GIGA STEEL. This is the highest ratio ever achieved in a body frame design and helps ensure significant levels of strength and safety for consumers. In the video below, watch as the SUV goes through various safety tests showing its crashworthiness and durability.

Durability to Prevent Fatigue Failure

The durability of parts is a critical factor to consider in vehicle design as their complicated components are subject to a wide array of complex stresses. In cars, material fatigue due to repeated mechanical loading can lead to the damage of critical components. Also, as vehicles are mobile machines, they are subject to even more unpredictable degrees of loading that can amplify the effects of fatigue on their parts. Moreover, because fatigue failure is often abrupt and difficult to detect, material providers must work to improve durability and ensure longer fatigue life.

“90% of the failures which occur in engineering components can be attributed to fatigue.”
– TR Gurney, Fatigue of Welded Structures

POSCO works with customers to provide accurate durability analysis for each of its products. Through extensive testing with various steel types, specimen shapes, and welding conditions, POSCO is able to provide in-depth testing results requested by customers.

POSCO also works with customers through its Solution Marketing 2.0 program that helps optimize the design and production process of each part – helping ensure that durability performance meets the customer’s needs.

POSCO GIGA STEEL provides automakers with durability to protect against fatigue failure.

Parts that require higher durability such as the CTBA (Coupled Torsion Beam Axle), wheel, engine cradle, lower control arm and stabilizer bar are interlinked with the fatigue data of POSCO steel. This provides the results of the durability analysis in order to suggest the most appropriate steel type for the manufacturer. Furthermore, POSCO supports joint research with customers for the design, manufacturing, and durability evaluations of its parts. POSCO also analyzes the causes of fatigue failure through SEM imaging of fatigue fracture surfaces, measurements of surface roughness, and measurements of strain rate and residual stress.

Today’s automakers must consider these properties during the design and manufacturing stages in order to find the right steel for each component. POSCO is committed to working with its automotive customers to ensure that the right steel solution is used for the right part – helping to find the right balance between formability, crashworthiness, and fatigue life.

In particular, through the recent zero-tariff measures taken among ASEAN Economic Community (AEC) member states and the Thai government’s push for more eco-friendly cars, the market is expected to see high growth potential with an expanded annual production capacity of 2.8 million by 2020.

POSCO TCS is positioned to take advantage of Thailand’s growing auto market.

Due to the growing auto market in Thailand, demand for automotive steel is also on the rise. Thai car makers all prefer to receive materials from local suppliers, so steel companies have begun building subsidiaries in the area.

POSCO TCS Opens in Thailand

In August of last year, POSCO TCS opened near Bangkok with a production capacity of 450,000 tons. With a local supply facility in Southeast Asia, POSCO can provide steel to automakers and parts manufacturers at more affordable rates and with higher quality control.

Chotika Arusawat (Procurement, left) explains the tax benefits for locally produced steel at POSCO TCS.

Chotika Arunsawat in the Procurement Department noted that “If automakers in the Southeast Asian region import POSCO steel from Korea they need to pay over 17% in taxes, but with POSCO TCS, they pay 0%. Also, the nearby Laem Chabang Port is one of the busiest container ports in the world making shipments to Malaysia, Vietnam, and Indonesia quick and simple.”

Having a local facility allows POSCO to build stronger strategic partnerships by smoothly supplying materials to global automakers and parts manufacturers in one of the largest car markets in the world. Narisara Im-Tua, who works in the Sales Department, told us that 85% of the steel products coming off the line were going to car makers and auto parts manufacturers, making POSCO TCS one of the largest steel suppliers in the region.

POSCO TCS is Defined by Superior Quality & Service

The plan to develop POSCO TCS began in 2011 with construction starting in 2014. When POSCO TCS went online in August 2016, other steel companies had already entered the market. However, POSCO is using its strategic advantages in production technologies, automotive steel expertise, and advanced production facilities to gain an upper hand.   

POSCO TCS President Lee Jin-soo says he is optimistic about the future of POSCO TCS in Thailand and the Southeast Asian.

In a recent interview, POSCO TCS President Lee Jin-soo noted that “POSCO is currently implementing systematic technology support with knowledge gleaned from other automotive steel facilities in Mexico, Indonesia, and China. Although other companies may have a head start, the future for POSCO TCS is looking bright due to our superior facilities and higher quality.”

To be a leader in the Southeast Asian region, POSCO TCS realizes it must manufacture superior products and offer better service than its competitors. Lee emphasized that POSCO TCS is “competing in the same industry to serve the same clients alongside some of the world’s best. Every employee at POSCO TCS must be devoted to securing a competitive advantage in all aspects of business.”

When asked how POSCO TCS can compete with other steel companies that have been in the region longer, Narisara Im-Tua stated matter-of-factly, “Because our quality is so high.” She added that POSCO TCS sends samples to Korea every 1-2 weeks for quality certificates and because of their consistently high-quality ratings, automotive customers are very happy.

Piyakun Boonmee (HR) explains POSCO’s commitment to quality for its customers.

Piyakun Boonmee in HR recounted the story of when a customer called Sales about a product that was not fitting in with their production process. The Sales Department reacted immediately, sending the Customer Service Department to the customer’s facility to check the product and production line. POSCO came back and worked to fine-tune the product so that it fit the customer’s specific production needs.

Boonmee stated that POSCO TCS customers “can contact our Customer Service Department at any time if there are any perceived quality issues. Our Quality Control Department will go directly to the customer’s factory to check the product and the production line. We work together with the customer to fine-tune the product until we are sure it meets the customer’s needs.”

A Culture of Trust & Leadership

We asked employees how POSCO TCS could maintain such high standards and quality for its products while also building strong relationships with its customers and employees. The most common response was about the healthy working environment.  

President Lee Jin-soo told us that “If you are respectful and considerate of everyone, employees are better able to work together and build a great product – regardless of cultural barriers or where they are from. For better performance, we empower them with training and the skills they need to succeed and we take care of any issues with respect.”  

Also, at POSCO TCS each employee is provided with 30-40 hours of training per year. These classes include everything from leadership and communications to learning Korean.

Everyone agreed that POSCO TCS was a great place to work, making it easier to work together for the customer.

When asked what it was like to work at POSCO TCS, Piyakun Boonmee said, “At POSCO TCS we are like a family and it is a happy place to work. Even though we work in separate teams, we are not separate, we work together for the customer – always striving to learn more and do better.”

Boonmee added, “In the future if we continue working like a family, we will be the #1 company in Thailand. After that, we’ll be number #1 in Southeast Asia. And we all share that goal.”

Throughout April & May, The Steel Wire will explore the uses and benefits of POSCO GIGA STEEL and what POSCO is doing to lead the industry with new automotive steel solutions.  Don’t miss any of the exciting stories from The Steel Wire – subscribe via email today.

Below we take a look at five of the most exciting advancements in car safety. From new technologies that help drivers steer the car to stronger frames that protect passengers, see how the auto industry is working to keep passengers safe.

Lane Departure Warning

Blind spot warning systems use sensors to alert drivers when another car is in their blind spot. Typically a dashboard or in-mirror icon will alert the driver with increasing brightness or sound alarms depending on the proximity.

Blind spot warnings are a fairly new offering, first showing up in luxury cars, but finding their way into more affordable cars. Because these systems also alert drivers when bicyclists or pedestrians are out of their field of vision, they offer huge step forward for those inside and outside of the car.

Electronic Stability Control (ESC)

Electronic Stability Control, or ESC, systems have automatic sensors that detect whether or not a vehicle is traveling in the right direction based on the steering wheel input. If the car suddenly slides out of control, ESC will automatically activate to apply brakes and engine torque to self-correct.

While ESC first appeared on luxury cars in the 1990s, as of 2012, they were required on all new vehicles in the US.

The Insurance Institute for Highway Safety has said that ESC lowers the risk of a fatal single-vehicle crash by about half, and the risk of a fatal rollover by as much as 80 percent. Most safety experts view ESC as a must have feature when buying a new or used car.

Blind Spot Warning

Blind spot warning systems use sensors to alert drivers when another car is in their blind spot. Typically a dashboard or in-mirror icon will alert the driver with increasing brightness or sound alarms depending on the proximity.

Blind spot warnings are a fairly new offering, first showing up in luxury cars, but finding their way into more affordable cars. Because these systems also alert drivers when bicyclists or pedestrians are out of their field of vision, they offer huge step forward for those inside and outside of the car.

Front Crash Prevention

Front crash prevention systems alert drivers when their car is moving toward oncoming traffic too quickly. Using cameras or lasers to gauge distances between cars, drivers are given a visual, audio, or vibration alert to get their attention so they can brake in time to avoid a collision. Also, some automakers are going even further by integrating auto braking features that will give a warning while also automatically slowing the car without the driver’s input.  

Research from the  Highway Loss Data Institute (HDLI) showed that front crash warnings could reduce rear-end crashes by 23 percent, while front crash warnings with auto braking could reduce collisions 39 percent.

Advanced High Strength Steels

Because of the many technological advancements made in collision prevention systems for drivers, many people forget that steel has made huge strides in the last 15 years. While the average car build in 1975 utilized just 3.6% medium and high strength steels, by 2007 that percentage had increased by more than 230%.

Until recently, most high strength steels were brittle and difficult to work with – not to mention heavy – while lightweight steels were too weak. Today’s advanced high-strength steels (AHSS) have been able to bridge that gap by providing materials that are strong, lightweight, and formable.

POSCO GIGA STEEL has a tensile strength over 1,000MPa and is over 3x stronger than aluminum. In addition to providing the strength needed to meet safety regulations, it is also ideal because of its formability and affordability. Because POSCO manufactures several types of steel with tensile strengths over 1,000MPa, POSCO GIGA STEEL can be utilized in specific ways to meet the unique needs of car makers.