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.

Krakatau POSCO is a joint project between POSCO and Indonesia’s state-run steel manufacturer PT Krakatau Steel. The construction of Krakatau POSCO, with an annual production capacity of 3 million tons, will be completed by the end of this year.

The board members shared their gratitude and encouraging words with those who have been working diligently in Indonesia’s hot weather. In a following luncheon with the employees, Chairman Chung said, “Let us develop our strong will to succeed in Indonesia by bearing in mind that the founding spirit of POSCO was to ‘create greatness out of nothing’.” The Chairman also requested the employees at the construction site to do their utmost to overcome sluggish global market condition.

Director Lee Young-sun emphasized that the facility would be the first integrated steel mill constructed outside of Korea by POSCO and the employees may feel proud of themselves. He asked the POSCO staff to pay full attention to prevent safety accidents and encouraged them to embrace cultural differences amongst the on-site workers.

Based upon the construction of Krakatau POSCO, POSCO will concrete its role as a leading global steel manufacturer and accelerate the entrance into Southeast Asian markets.

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.

What is ‘World’s Most Competitive Steelmaker’ Award?

From 2002, WSD has been analyzing global steel markets and rating the world’s leading steel manufacturers on 23 categories: production volume, profitability, technology renovation, pricing power, cost reduction, financial solidity and securing raw materials.

POSCO Receives High Points with Labor Mastery and Technology Renovation

The Steel Success Strategies XXVIII, one of the biggest steel industry conferences in the world, was held by WSD at Sheraton New York Times Square Hotel between June 18th and 19th. As a part of the conference, WSD announces which company is leading the industry by excelling all of its competitors in terms of various business aspects.

For this time, POSCO received evenly high marks in all areas, recording 7.73 out of 10 points. POSCO was highly evaluated for its labor mastery, ‘FINEX’ and energy plate manufacturing technologies. Expansion of high value added products and exploration of newly emerging markets also received positive assessment.

CEO Chung Joon-yang Delivers Special Speech

Chung Joon-yang, POSCO’s chief executive officer and chairman, was also invited as ‘Highlight Speaker’ on the second day of the conference. CEO Chung introduced POSCO’s growth dynamics and its history of continuous developments and innovations.

The Chairman talked about how POSCO has been driving a consistent growth over the past four years via leading innovative business activities and concreting the global management system. He also talked about POSCO’s efforts to amplify the company’s global competitiveness by creating high value added products. Chairman Chung stressed that it is vital for POSCO’s ‘World Best’ spirit to overcome the sluggish global economy.

Growing Together with ‘SPICEE’

Chairman Chung also explained the importance of building a sound corporate eco-system by adopting a better sense of partnership with their employees, stakeholders and the surrounding environment. He emphasized POSCO’s unique concept of ‘SPICEE,’ an acronym for ‘Society,’ ‘Partner,’ ‘Investor,’ ‘Customer,’ ‘Employee’ and ‘Environment,’ to highlight the significance of mutual cooperation and development. POSCO believes a positive synergy between these factors will enhance POSCO to become a firm of endearment. He said, “We must strive to transform the organization from a great company to the Firm of Endearment by working closely with every SPICEE element.”

‘Hello, POSCO’ would like to thank all of you for the award we received from WSD. POSCO will continue sailing towards our goal to become a more loved and respected steelmaker by everyone. So, stay tuned with us at ‘Hello, POSCO’ and we will keep posting great stories of the journey.

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.