POSCO CEO and Chairman Chung Joon-yang and the Deputy Chairman of VEB Andrey Yurjevich Sapelin attended the signing ceremony to celebrate the firm economic partnership between Russia and POSCO.

According to the MOU, POSCO will be dispatching teams of production, sales and technology experts to manage the steel mill and pass on the know-hows of the world’s leading steelmaker in various sectors. For the first 24 months, a short-term program will be conducted to secure the facility’s financial stability. Once the management and operation is back on the right track, POSCO is planning to extend the program into a five-year plan to assist Amurmetal to stand with its own feet. POSCO and VEB agreed to cement the detailed scope and volume of the project within a month.

At the ceremony, Chairman Chung said, “By leveraging POSCO’s accumulated experiences and management know-hows at its utmost, we will actively support Amurmetal’s management normalization.” He then continued, “Beyond a short-term based stabilization, POSCO will lead Amurmetal into a strong steel mill through readjusting equipment and other necessary measures.”

Completed in 1942, the only steel mill in the Far East’s Khabarovsk has an annual production level of 2.15 million tons. However, due to the global financial crisis in 2008, Amurmetal became heavily indebted and was eventually taken over by Russia’s state-run bank in 2010.

With the partnership with VEB and Amurmetal, POSCO will be highlighting the ‘Technology Is POSCO’ brand image, as well as generating a new business model of exporting the company’s management know-hows.

Also, upon the foundation of the economic partnership between Korea and Russia, POSCO’s ongoing operations in the Far East, including the developments of Siberian mines, ports, roads, modular housing and other social infrastructures, are expected to be bolstered.

In his opening speech, CEO Chung said, “The current economic partnership between Korea and Australia is mainly based upon the developments of natural resource and infrastructure. To achieve a qualitative advancement for both countries’ economies, we need to expand the partnership to the Creative Economy sector.”

He then emphasized the importance of leveraging the two countries’ advantages for a common goal. “Australia is showing its strength at culture and tourism industries while Korea has a well-built infrastructure for ICT and manufacturing. I believe we can explore a new business opportunity together through maintaining and developing a mutual supplementation,” the CEO added.

John Walker, the Chairman of Macquarie Korea, mentioned the efforts made by the Australia-Korea Business Council on the recent designation of Korean as one of the Australia’s 5 important languages. He also participated in a meeting held by the Australian government last November to encourage the economic cooperation with Korea.

For the main discussion, about 60 participants, including the Ambassador of the Republic of Korea Kim Bong-hyun and the Premier of Victoria Denis Napthine, shared their thoughts and opinions about the co-production of super yacht, exclusive theater for hologram operas and medical smartphone.

Accomplishment Made Upon Workers’ Sweats and Tears

(Front Row, From Left) Minister of Rail Transportation Than Htay, Vice President Nyan Htun, Minister of Energy Zeyar Aung and Daewoo International Vice Chairman Lee Dong-hee

CEO and Chairman of POSCO Chung Joon-yang, Vice chairman of Daewoo International Lee Dong-hee, Vice President of Myanmar Nuan Tun and about 150 guests from the governments and POSCO partners celebrated the kickoff of offshore natural gas commercialization.

This ceremony for the gas field development by Daewoo International holds a significant meaning for all participants because the project went through a number of major difficulties due to sluggish investment conditions. Nevertheless, the employees’ sweats and tears have finally been paid for.

Daewoo International drilled the submarine area in Westside sea of Myanmar, in which other oil companies from France, Japan and the U.S. failed to find any feasible gas field in the 1970s. By adopting a new concept of exploration, they found ‘Shwe’ gas field in 2004 and also succeeded in discovering ‘Shwe Phyu’ and ‘Mya’ gas fields in 2005 and 2006.

The total amount of gas deposit in these three gas fields reach about 4.5 trillion cubic feet, which is the biggest volume of gas fields found by any Korean oil/gas companies around the world. In addition, the Myanmar gas field operation was undertaken by Korea’s own technologies and know-hows. It is regarded as a cornerstone and a good model for the Korean oil and gas companies operating overseas.

During the ceremony, Chairman Chung shared his feelings with the audience by saying, “This is the most rewarding moment since Daewoo International started working with us as a member of POSCO Family.” “To build a better world with dreams, hopes, materials and energies, which is POSCO’s vision, we absolutely need Daewoo International’s competence and know-hows in resource development,” he added.

Lee Dong-hee, Vice Chairman of Daewoo International, also expressed his gratitude for the completion. “I am overwhelmed to see the successful result of the Myanmar gas field project, which is built upon our employees’ sweats and tears,” he said. The Vice Chairman Lee emphasized that Daewoo International will continue to focus on resource development and new growth engines to achieve another highly fruitful outcome like they have done in Myanmar.

Myanmar’s Local Society Impressed by Daewoo International’s CSR Activity

Daewoo International also hosted a donation ceremony at Kyuak Phyu to celebrate the completion of roads renovation as a part of the corporate’s project for the local infrastructure enhancement

In line with the gas field operation, Daewoo International also operated a series of CSR activities in Myanmar. For a town of Kyuak Phyu, Daewoo International built more than 10 kilometer-long roads and bridges. They also provided supports for education, medical assistance, water supply and other infrastructure. By doing so, Daewoo International aimed at improving the quality of local residents’ lives and the prosperity of Kyuak Phyu.

Notably, Daewoo International is also investing USD 200,000 every year to create a submarine forest in Mangrove, located near Ramree Island. The project will assist the subtropical region’s environment protection and provide protections from Tsunamis and cyclones.

A 4300kva (20㎿ per day) diesel generator is also installed for the on-land gas terminal in Kyuak Phyu, to ease the electricity shortage for about 5,000 local homes. The Myanmar Investment Commission (MIC) appreciated the effort from Daewoo International and granted a commendation for their social contribution.

Daewoo International’s Oil/Gas Development Operations Continue

Since the Korean government granted the right to explore the seabed mines in the East Sea in September 2011, Daewoo International has been pushing ahead with the operation in association with the Korea National Oil Corporation. In March, Daewoo International has also secured an investment from Woodside, the biggest oil development company in Australia, for AD-7, a marine mine lot in vicinity of the Myanmar’s gas field. A month later, Daewoo International was also able to secure its right to investigate and explore mines in RSF-7 and MOGE-8, both located in the central inland area of Myanmar. Daewoo International will keep moving forward to the continuous growth and advancement in resource development division.

Chung Joon-yang, POSCO’s chief executive officer and chairman, held a meeting with Cameroon Prime Minister Philemon Yang on July 23 and entered into an MOU for cooperation on steel industry development and offshore plant fields, the businesses Cameroonian government has been striving for.

Chairman Chung Joon-yang signed an MOU on ‘Steel Industry Cooperation’ and ‘Offshore Plant Cooperation’ with the Cameroon government at the Cameroon Prime Minister’s official residence. From the left, Minister Fuh of the Industrial Mining Technology Development Division, Chairman Chung Joon-yang, Cameroon Prime Minister Philemon Yang and Chairman Nyassa of the CNIC Board of Directors.

POSCO, which has served a pivotal role for Korea’s 5-year economic development plan in the 1970s, will be joining hands with Africa’s newly rising nations to pass on technology and know-how in the steel and offshore plants.

Cameroon has 5 billion tons of iron ore deposits and produces deoxidizing gas, which are essential for steel-making. Also, it is ideally located to stably supply steel materials to countries around the Gulf of Guinea. This fact will be a great boost for POSCO because the area has been showing more than 8 percent growth rate for recent years in terms of annual steel consumption.

Since 2011, Cameroonian government has requested supports from POSCO for the development of the nation’s steel industry. In response, POSCO proposed the ‘Cameroon Steel Industry Development Policy’ in 2012 and provided necessary supports to boost Cameroon’s newly emerging industry. With the MOU signed by Chairman Chung and Prime Minister Yang, POSCO will continue working with a suitable model to bolster the steel industry of the West Africa.

Cameroon is also located at the center of the Gulf of Guinea which produces more than 4 million tons of crude oil daily, making it an optimal location for jack up rigs and offshore plant repair. POSCO will additionally sign cooperation MOU with the shipyard operated by the Cameroon government, carrying out investment cooperation as well as technological training in the offshore plant repair field, and searching for joint project opportunities.

POSCO’s cutting edge technology built world’s biggest Furnace

Since the initial construction in April 1987, Gwangyang Steelworks’ Furnace 1 extended its size from 3,800㎥ to 3,950㎥ when the second renovation was completed. After its third enhancement made in this year, Furnace 1’s volume now reaches 6,000㎥, bigger than the previously world’s largest furnace (5,800㎥) built by Shagang Group in China. Without a doubt, Furnace 1 at Gwangyang Steelworks is now the greatest furnace every built.

It is indeed a remarkable accomplishment not only for POSCO but also for Korea. POSCO started its steelmaking operation back in 1968 under an unimaginably harsh local condition. In the 1960s, there was no raw material, capital and technology to utilize in Korea. POSCO was able to stand on its own feet by receiving loans and technologies from foreign companies in line with the government’s ambitious plan to boost the economy. After 20 years, POSCO constructed Furnace 1 at Gwangyang Steelworks with the company’s own technologies. Now, the very same furnace has been reborn as the world’s biggest furnace. Isn’t it just amazing?

Cost-saving and Energy-friendly technologies

When a furnace is built, the fire inside is not put off for a single time over about 15 years. Once the lifespan is completed, a repair work is required to completely renew the furnace. The technologies involved in the repair operation are countless as they determine life expectancy, volume and productivity of furnaces.

POSCO used a new cooling system to minimize damages on the furnace during the repair. POSTECH and RIST worked with POSCO to develop the new technology, which is anticipated to extend the lifespan of Furnace 1. Also, another cutting edge technology has been embedded to Furnace 1 by inputting more reducing gas into the furnace. It will boost the amount of molten metal up to 2.50t/d.㎥. Because it is also an efficient technology, POSCO is expecting to save about KRW 1,000 billion a year for molten iron manufacturing costs.

For the first time in Korea, a dry-based dust collector was used for Furnace 1 as well, enabling us to recover more energy by using high-pressure gas exhaled from the furnace. It will also save us KRW 1.3 billion a year. A non-steam quenched blast equipment was also casted to cool down slags with less electricity, water, unpleasant smells and dusts.

During the ceremony, POSCO’s Chief Executive Officer and Chairman Chung Joon-yang delivered a speech saying, “Gwangyang Steelworks’ Furnace 1 is the mixture of our finest technologies over shaft operation, material quality control and facility management. It has become the symbol of POSCO’s ‘World Best’ and World First’ top quality molten metal manufacturing process.” Chairman Chung also added, “I would like to thank all of you for your continuous supports and loves towards POSCO. Moving forward, we will consistently cooperate with our partners for mutual development to overcome the sluggish economy.”

“The world’s largest furnace pouring out world’s best molten metals,” doesn’t it sound so exciting? POSCO’s latest accomplishment with Furnace 1 at Gwangyang Steelworks was only possible with POSCO employees’ sweat and effort, and also the supports from all of you. POSCO will not be satisfied with the success and continue engaging with more World Best and World First operations to become the more loveable and respectable cooperation.

Lakshmi Mittal (ArcelorMittal), Ratan Tata (Tata Group), Daneil DiMicco (Nucor), Jorge Gerdau Johannpeter (Gerdau) and Gianfelice Rocca (Techint Group) were successive laureates since the award was established in 1991.

AIST is one of the top academic research organizations with highly appreciated reputation around the globe. AIST said CEO Chung was recognized as a visionary for the global steel industry for his knowledge of steel operations, dedication to safety, awareness to secure raw materials, enthusiasm to incorporate new technologies, foresight to expand POSCO’s foreign presence, and prudent strategy to promote mutual growth with steel-consuming industries.

In the ceremony joined by John Surman, CEO of U.S. Steel, and other major steelmakers, Chung accepted the honor and praised AIST’s diverse programs for the past 20 years, contributing to development and promotion of steelmaking technologies. He addressed that POSCO is putting all its efforts for developing cutting edge technologies to overcome rises in raw material prices, climate change and lack of energy resources. POSCO is also making a great deal of investments in R&D for environment-friendly and economic steel production, he added.

At the press conference after the awarding ceremony, Iron & Steel Technology, Steel Times International, Steel & Metallurgy, Industrial Info Resources, Platts, American Metal Market and other international steel and industry media packed the conference room to hear what the CEO was to share.

For the media session, CEO Chung introduced POSIT (POSCO Innovative Steelmaking Technology), a new technology for securing POSCO’s future competence, and explained about the backdrop of POSCO’s competitiveness. He also illustrated Smart Workplace System and how it was affiliated with the creative production efficiency of POSCO. The firm’s POSCO-Scholarship was also presented as well in order to show the case studies of finding and cultivating highly talented personnel.

For students and newcomers in the steelmaking industry, the CEO advised them to have a dream, a vision and an active passion in their journey towards the bright future. In doing so, Chung said, anyone can become a CEO and a winner with the spirit to overcome hardships and difficulties with optimism in mind and ownership of their own tasks.