Dream comes true in 2068 achieving 500 billion sales?

POSCO has celebrated 50th year anniversary ‘Future vision declaration’ on April, 1st and announced future missions and visions as Top 5 world leading global steel company.

CEO of POSCO, Ohjoon, Kwon is sharing global missions and visions with audience at 50th anniversary

For the future, ‘Unlimit the Limit’

Ohjoon Kwon the CEO of POSCO disclosed POSCO’s new future slogan ‘Unlimit the Limit: Steel and Beyond’ by using TED speech method that is currently considered as one of the most efficient speech method. The mission that has been made based on POSCO’s challenges for 50 years history, is expressed the will of POSCO to ‘overcome the limit and go further to the next step’ especially challenging to non-steel industry.

POSCO is developing a plan to shift gradually from current profit system that 80% of income from steel industry to new profit system that produces profit from 3 different industrial fields: Steel, Infrastructure, New Growth in the ratio of 4:4:2. By successfully operating new profit system, POSCO expects that the mission can be accomplished by 2068 sales up to 500 billion dollars and 70 billon dollars of operating profit.

POSCO is focusing balance of 3 core elements, business, technology, culture. (Source:Bitcoinmagazine)

POSCO’s Perspective: Harmony of business, technology and culture

POSCO’s future vision also has been announced as ‘POSCO the Great’. This was the slogan that Ohjoon Kwon introduced as he had been elected as CEO of POSCO in 2014. The slogan was focused on simply recovering the strength. However, the new slogan is ‘Great Business, Great Technology and Great Culture’ indicating well-organized business structure, advanced technology and organizational culture.

POSCO has contributed significant impact on both Korean country and society in terms of steel and educational support. And POSCO has decided to keep supporting business for the country.

One of the plans that POSCO is contemplating, is establishment of the place for developing creativity for adolescent.

The ’Youth Creativity Center’(tentative) is going to be designed to provide various opportunities to adolescents such as giving experience to understand basic understanding of scientific technology and opportunity to improve creativity.

Furthermore, the ‘Youth Creativity Center’ will contain diverse spaces for culture and arts so all generations will be easy to access. POSCO is expecting the Youth center may be a competitive candidate on coming international contests.

Seoul POSCO center has opened a new product exhibition hall to communicate more with general populations and show their future vision. The exhibition hall has 30 seats visual promotion room. The room provides POSCO promotion videos and visualized POSCO images by 3D technique. Various animations and techniques are prepared to describe steels that are being used in our life and industrial demands of steel for future.

For celebrating 50th anniversary, POSCO will broadcast TV commercial named ’50 years challenge, New Dreams for next 100 years’ until June 10th and POSCO exhibition (Homage to POSCO) will be held in POSCO art gallery in lower ground level until May 8th. POSCO historical museum in Pohang is also going to open gallery (‘Visualized history of POSCO for half century’) showing numerous events during POSCO’s 50 years until June 30th.

POSCO is also preparing the event that gives valuable opportunities to share thoughts between CEO and employees in Seoul, Po hang, Kwang yang city.

‘Together the Better’, POSCO and Korea have strong bond in all history

True companion of Korean history

50 years of POSCO’s history is in the same line with Korean history which means that POSCO has been increasing growth for half century. POSCO was established in 1968, and the very first steel was manufactured in 1973. Since that year, total sales of POSCO has incredibly elevated by 686 times last year from 1973. 

Growth of POSCO gave great influence on major industry in Korea. Especially Korean automobile and shipbuilding industry had similar growth curve which means that materials manufactured from POSCO was true backbone for those industries. For instance, Korean ship manufacturing has reached to 23.5 million tons from 12 thousand tones from 1973. And automobile production also increased 4.11 million from 25 thousand cars.

SEE ALSO: What are Automobiles Made of?

Technology is another fundamental aspect of POSCO’s strength. POSCO has developed eco&efficient furnace by its own technology called ‘FINEX’ technology which fully satisfied current and future global trends, environmental and innovative. With this advanced technology, POSCO has exported its unique iron making technique in China in 2013. This describes that POSCO is global technology provider.

In addition, POSCO is the global top company that produces steel for vehicles. Approximately 9 million tons of steel for vehicle has been produced from POSCO which indicates that 25% of steel for car manufacturing is from POSCO. Simply 1 in 10 cars in global, uses steel from POSCO.

Relationship of growth between GDP per person in Korea and production of steel of POSCO

POSCO has established its own smart platform named ‘PosFrame’ that made POSCO is global leading steel company for smartization.

With all these achievements, POSCO has been listed in ‘worlds most competitive steel maker’by World Steel Dynamics for 8 consecutive years since 2010. Also POSCO has been top ranked in SAM-Dow Jones Sustainability index since 2005.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

More drivers are making the switch from gas to electricity to fuel their cars. (Source: The Korea Bizwire)

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

Why don’t more people drive EVs?

Electric vehicles (EVs) have a variety of benefits for drivers, the most obvious being cheaper electricity prices compared to gas. Not only that, EVs only have about a third of the parts of ICE vehicles, which results in maintenance-cost reductions by about 60 percent. There are also government subsidies that support EV manufacturers and consumers in numerous countries, and environmental regulations only look to strengthen. Despite all this, drivers have been slow to make the switch to EVs, and there are 3 critical reasons why.

1. Range

Today, EVs can travel about 200 to 400 miles on a single charge, and while this may be sufficient for most urban drivers, it’s still not enough coverage to relieve drivers of range anxiety. Low-capacity batteries are not the only problem – the weight of the car and the efficiency of the motor and converter also affect range. Put simply, even if a battery could hold more energy, it won’t result in increased range if the car is too heavy or the motor is inefficient and uses up too much energy. Automakers have to come up with comprehensive solutions to improve the battery capacity and motor efficiency as well as lightweight their vehicles.

Drivers are often wary of their EVs running out of juice where there are no charging stations. (Source: Sandman YouTube Channel)

2. Charging Time

EVs currently take up to several hours to fully charge, depending on the battery. Although there have been advancements in charging systems that allow for shorter charging times, the average charging duration cannot compete with the 3 to 5 minutes people spend at gas stations.

3. Charging Stations

Despite the technological leaps made in the development of EVs, charging infrastructure has not maintained the same pace. Gas stations outnumber charging stations in every country, and it will take time to figure out a model to commercialize charging stations and make the business more profitable.

Charging stations have not yet been commercialized as gas stations have. (Source: Coinfeeds)

Why EVs are still driving toward a bright future

Although there are still challenges to overcome, one of the greatest drivers of widespread EV adoption is national policy. A growing number of countries have declared they will limit or even ban ICE cars altogether by 2020. Policies are already in place to support a more environmentally sustainable auto industry, and companies are working hard to navigate and capitalize on the changing market environment.

This will bring about a wealth of new opportunities for related industries. That’s why automotive, materials, electronics and chemical companies around the world are investing heavily in technology to preempt this market, and first movers will gain a tremendous advantage.

POSCO is one of the companies looking to lead the global EV materials market and has been investing in and developing innovative solutions for EV manufacturers. POSCO has designed an ultra-lightweight yet strong chassis and developed the necessary parts to bring it to life. POSCO is also currently working with auto manufacturers, giving them access to POSCO’s EV chassis design expertise as well as its newly-developed materials.

POSCO has designed an ideal chassis for electric vehicles. (Source: News Tomato)

In addition, POSCO works closely with each of its affiliates including POSCO Daewoo, ICT, ESM and ComTech that are highly specialized in their respective fields. In cooperation with its affiliates, customers and academia, POSCO is in the process of developing innovative technologies for batteries, electric motors and charging infrastructure. As such, the EV sector has become a core business area for POSCO.  

Everything from the EV chassis and battery to the motor and charging infrastructure is codependent. Therefore, in order to develop an advanced EV that meets the needs of consumers, an integrated approach is vital. POSCO is in prime position to work with all of its affiliates under One POSCO and gear toward a future of cars running on electric motors.

Cover photo courtesy of The Wellingtonian.

The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

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.

Since last February, CEO Kwon has visited Siemens, GE and other businesses in Silicon Valley to explore new technologies and expand POSCO Group’s smartization plan. At CES 2018, CEO Kwon saw first-hand the latest smart technologies and plans to implement them to all of POSCO’s core businesses including steel, construction, IT and energy. He also met officials from leading smart companies such as GE and DPR Construction, and examined possibilities for cooperation over commercializing POSCO’s smart solutions.

POSCO Kwon met Heilmann Matthias, President and CEO of Digital Solutions at Baker Hughes General Electric (BHGE). Matthias oversees the digital solution business of GE Group, and the two discussed the development of PosFrame, POSCO’s proprietary smart platform, its compatibility with Predix, GE’s smart platform, as well as the possibility for joint commercialization.

In particular, POSCO ICT is planning to sign an MOU with DPR Construction, the world leader in Smart Construction, to collaborate on smart projects and find opportunities to apply new ICT technologies to construction. Through this MOU, the two companies will cooperate on projects such as constructing and operating highly-efficient, low-cost data centers and smart factories controlled by PosFrame.

CEO Kwon also visited the automobiles, home appliances, smart city and smart home exhibition booths. He examined the latest tech trends of IT utilization in steel-consuming industries to develop compatible materials and steel solutions.

He also made sure to explore electric vehicle (EV) batteries and new IT technologies surrounding EVs, as lithium materials are the new growth engine of the company. CEO Kwon also evaluated the possibility of securing new markets for the group’s construction business at home and abroad.

POSCO Group plans to continue searching for new, innovative solutions to apply to its smartization efforts and actively develop domestic and overseas data centers and smart factory markets.

Cover photo courtesy of BGR.

1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.