The increasing demand for automotive fuel efficiency and mass reduction has resulted in increased use of alternative materials in the design of various components that have historically been produced using steel. Mass benchmarking often is done with a one-at-a-time approach. A reference vehicle is selected, the vehicle is disassembled, parts weighed and analyzed, and then the data used to set mass targets for a vehicle under design. A potential problem with this method is that it does not tell you anything about the mass efficiency of the baseline part. However, benchmarking study results, commissioned by WorldAutoSteel by A2Mac and Dr. Don Malen of the University of Michigan, point to a powerful new statistics-based benchmarking methodology.

Rather than considering a single vehicle or a small set of vehicles, this study, based on statistical benchmarking methodology presented by Dr. Malen in a Society of Automotive Engineers paper, looks at a very large sample of vehicles over a range of sizes and segments. From this larger population, real vehicles were tested via statistical methods. This methodology isolates the lightweighting “achievers” among subsystems, such as body structures, doors, hoods, deck lids, bumpers, etc. It allows automotive designers to identify those subsystems which are much lighter than the ‘average’ vehicle, and therefore set subsystem targets on a more accurate basis than that which is being accomplished in the industry today. These lighter than average subsystems are called mass “efficient.”

It also allows a broad look at current production vehicles to take the pulse of lightweighting efforts.  Has steel truly achieved all it can in lightweighting, that is, have vehicles become as light as they can be with steel? What is the reality of the steel/aluminum comparison? This 2017 report is the third update of this study in benchmarking, and the findings continue to surprise. These findings can be summarized in the following statements and examples:

The mass efficiency of today’s steel designs varies drastically (Figure 1). When comparing some steel components of the same size and function, there are drastic differences in the range of weights in what should be similar mass subsystems. In fact, some steel designs of the same size, performance, and similar vehicle segment are double the weight of others. As an example, among the same size steel doors, there is a 44% difference between the heaviest steel door in the database and the steel door considered most efficient. This confirms that there is still much room for design optimization in vehicle structures, with steel, even with the technology and materials already in use.

Figure 1. Mass efficiency of today’s steel designs

When compared to an efficient steel design, the mass savings gap with aluminum significantly reduces. Statistical evaluation conducted in the study identified those components that are most mass efficient. When the most efficient steel designs are compared to the most efficient aluminum designs in the study sample, the mass savings gap between steel and aluminum significantly reduces, compared to averages (“nominal”) of all steel and aluminum designs. In Figure 2, for every component that falls within the orange triangle, the mass savings among efficient designs was less than the mass savings between the averages. 

Figure 2. Mass savings gap with aluminum vs. efficient steel structures

Figure 3 provides a slightly different comparison as a component example. It compares the average steel bumper and the efficient steel bumper to the efficient aluminum bumper, showing a significantly less mass reduction for aluminum. The efficient steel bumper saves 27% mass over the average steel bumper, providing an affordable alternative.

Figure 3. Comparison between the average steel bumper, the efficient steel bumper, and the efficient aluminum bumper

Mass savings achieved at the component structure level are often not realized at the system level.  In nearly every component reviewed, a portion of the mass savings that was achieved with an aluminum structure was lost in the system. Figure 4 shows all systems (orange-shaded area) which do not reflect the mass savings achieved at the component structure level. The aluminum hatchback system actually exceeded the mass of the steel design, which is why its data point is in the negative number (lower tan area) of the chart. These systems are particularly those components that directly communicate with the passenger compartment since they require additional noise, harshness, and vibration (NVH) mitigation. A follow-up door study to investigate this phenomenon revealed that the biggest mass additives to the aluminum door subsystems was additional NVH sound damping materials and added structure such as hinge reinforcements.

Figure 4: Mass Savings with Aluminum – Structure vs. System

There is yet untapped mass savings potential for steel. The disparity among the steel subsystems still notable in the database in this study update confirms that there is still considerable room for vehicle lightweighting with steel. Design optimization, such as that used in the steel industry program FutureSteelVehicle body structures, combined with growing usage of Advanced High-Strength Steels and steel technologies, will lead to a leaner, yet cost-effective, vehicle fleet.   

Key reasons to utilize AHSS are (1) better performance in crash energy management, and (2) superior strength allowing this performance to be achieved with thinner materials, translating into lower vehicle weight. It is important to note that the auto industry has adopted lightweighting as a greenhouse gas reduction strategy; this strategy, however, must be executed in an affordable manner. Thus, today’s steels enable significant mass reduction, while meeting crash and other functional requirements, while preserving affordability.  

Relentless innovation & research has ensured steel’s status as the automotive material of choice.  In 1970 there were just seven High-Strength Steel grades available to automakers. Today there are over 45. As a result, the steel industry is seeing unprecedented growth in AHSS automotive applications. Independent marketing research suggests that they are the fastest growing materials for future automotive applications as shown in Figure 5, which provides only the North American data.

Figure 5. North American Light Vehicle AHSS & UHSS Utilization Forecast

Today, most steel companies are extending their research and development efforts to expand the range of properties available through these new steels and enable safe and environmentally friendly vehicles.

For more information on how advanced automotive steel can benefit automakers looking for lightweight and sustainable steel solutions, take a look at our infographic on POSCO GIGA STEEL or read the full report here. 

His name may not sound so familiar. It is not as well-known as Genghis Khan, the ruler who laid the cornerstone of The Mongol Empire, but Saladin is still recognized as a beloved historical figure among Muslims. He is the one who fought for the Holy Land of Jerusalem on behalf of Islam during The Crusades, a fierce 200-year-war between European Christianity and the Islamic world in the 11-13^th centuries.

A noticeable part in the front of the statue of Saladin is the sword that he is holding with his right hand, pointing it up towards the sky. It may seem like an ordinary sword, but this blade, also known as the Damascus blade, contains an interesting history in relation to iron. Let us appreciate a part of the history of iron, through following the footsteps of this sacred weapon.

An invincible sword made of Wootz steel, captivates everyone’s heart

Firstly, one cannot help to wonder how the sword ended up with the name of Syria’s capital. It does not have obvious ties to Damascus, and its origins actually bring it back to ancient India.

Take a moment to look at the column in the photo above. It is made with steel, weighs six tons and measures 10 meters high. Judging from its pristine condition, which does not have a lot of rust, one may think it was made rather recently; however, it was erected 1700 years ago, during India’s Gupta Dynasty. Many scholars have conducted investigations on its composition to solve its mysteries, but they were not able to discover a definite reason as to how it has been able to remain rust-less.

This column, called “the iron pillar of Delhi”, is made with something called Wootz steel. Because of its durability, even to hammering, Wootz steel was mainly used for making sharp blades. It is unreasonable to think swords made with such an outstanding material to remain only in India; it was exported worldwide, to Russia, China and even to Persia. Eventually, swords made with Wootz steel captivated the hearts of the Damascus people in Syria.

But why is this specific sword called the “Damascus blade”, and not the “Indian sword” or the “Wootz steel sword?”

Damascus used to be the trade center of West Asia. Wootz steel blades were exported through the city and due to its high demands, it is predicted that a shortage in supply shortage must have occurred. At around 300 B.C., the spread of the Wootz steel blade began when merchants started to produce swords directly by hiring artisans. That is when the storied blade got its name as the “Damascus blade” – born and raised by India, but rising to fame only after it reached Damascus, Syria.

Strong and beautiful, the Damascus sword

Beginning with its manufacturing process, the Damascus blade was an extraordinary tool. While its blade is solid due to a mixture of carbon that allows it to maintain an even level of solidity, its body has a distinct pattern due to differences in carbon distribution that enables it to be shock absorbing. That is why a writer once described the sword as “a shining wave in a breezy pond.”

Because of its strength and beauty, the Damascus blade was a weapon coveted by many. One person who especially wanted one of the valuable swords was Mutawakkil, a caliph of Abbasid who ruled the Islamic world from the 8^th to 13^th centuries. He had heard of its reputation from southern India where it was being produced at the time, and eventually succeeded in obtaining this legendary weapon, after various attempts and paying a huge sum of money – only to lead him to his death.

He assigned his adjutant Bagyr as a keeper of the sword, and it just so happened Mutawakkil’s subordinate was planning a revolt against his leader. Bagyr later murdered Mutawakkil with the Damascus blade, his most precious treasure – ending his quest for the sword in an ironic fate.

A weapon that defeated the Crusades

It was not until the Crusades that the fame of the Damascus blade spread to Europe from Asia; it was Saladin’s army’s use of the Damascus blade that pierced crusaders’ thick armor and severed their swords in one swing.

However, there is another reason why this particular sword is incredible; it is not only strong and sharp, but also light and slim. One may think that the sword featured in Saladin’s statue is undersized. It’s almost hard to believe that a hero who once ruled over the world was wielded such a small sword, but not everything that is bigger is necessarily better. Saladin’s army was much more advanced in battle because of their mobility, than the crusaders who used heavy swords.

There are some urban legends of the lithe and powerful blade that exist from its heyday. When King Richard I, who lead the Crusades, showed off his sword, Saladin responded by throwing a piece of silk over his Damascus blade, which apparently finely sliced through the cloth.

There were also rumors such as that the devil taught humans how to make the Damascus blade, and while one can only wonder how reliable this tale to be, it surely reaffirms the blade’s reputation as tremendous weapon.

The Crusades eventually ended in defeat, and from an Islamic perspective, the Damascus blade is considered to be what successfully prevented the invasion of Christianity.

Since then, the Damascus blade has fought in battlefields around the world. But around 250 years ago, the manufacturing technique faded from the generations of artisans, and since then, it has not been restored. Even though we develop other weapons of mass destruction using steel at this day and age, the craft of making the historically significant blade has evaporated into a memory.

Will there be another day in the future when we will be able to appreciate the Damascus blade’s legendary pattern of “a shining wave in a breezy pond” once again?

Written by Changhoon Kang, author of ‘Era of Steel’

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

Traditionally, metal cutting methods have been used to manufacture machine components. The process would begin by shaping the metal through casting or welding, getting it to look as close as possible to the final product. To finalize the procedure, any unnecessary parts would be removed by a CNC (Computer Numerical Control) router. Using these types of cutting methods would accelerate the speed of production, but was considered wasteful since the majority of the starting material would be cut out and discarded. It is especially not appropriate for high-priced materials or materials that are difficult to cut.

Then there is additive manufacturing, which is a 3D printing technology that builds a final product through stacking layers of material, and then polished for a seamless appearance. The advantage of this method is that there is almost no waste of the material, which allows for the opportunity to create various prototypes without a separate mold or tool. A downside, however, is that it takes too long to manufacture, which makes it a tough choice for productivity.

Recently, General Electrics (GE), an American manufacturing corporation, officially joined the 3D printer business by assigning a merger of Arcam, a Swedish 3D printing specialized company, and the Germany-based SLM Solutions, to GE Aviation. Until now, 3D printing technology was primarily centered around plastic materials, but GE’s ambitious expansion into the 3D printing business indicates the rapid growth of new technology in producing major metal parts.

SLM solutions specializes in the Direct Metal Laser Sintering (DMLS) method – a printing technique that requires laser-firing a bed of powdered metal such as titanium, special steel, aluminum, cobalt chrome or nickel, melting together the powder to form a structure. Sweden’s Arcam has been manufacturing aircraft engine turbine blades by using the Electronic Beam Melting (EBM) method, which enables high-speed 3D printing by injecting 100 or so electron beams simultaneously into the metal. By combining the technologies of these two merging companies, a new high-speed 3D metal printer is surely to be developed in the near future.

Manufacturing Metal Parts with 3D Printing

Image credit: WH Williams

The multinational special steel company, Voestalpine Group, recently established a new research and development center for the 3D printing of metal components. At this center, 3D printing manufacturing technology for automotive and aviation sectors, medical devices and complex metal parts will be researched.

Creating metal parts with 3D printing requires powdered metal of excellent quality. Raw metals initially undergo vacuum melting to become an alloy, which then becomes atomized by spraying high-pressure inert gas through a nozzle, turning into powder. The powder must appear very round and uniform, so the core of this technology is to meticulously control the nozzle’s injection amount, temperature, pressure, gas quantity and speed — all depending on the type of the alloy. The atomized powder is then classified by size, ranging from 20μm to 100μm, after several filtering processes.

Designing the metal components to be suitable for 3D printing is also important. Since the printer builds the part layer-by-layer, surfaces must fulfill the requirements for a laser or electron beam to scan through. As a fine diameter of light from the laser passes through the designed lines and surfaces, the powdered metal melts topically and creates a new layer on top of the previously laminated surface. At this point, the part may have an overall directional angle, so the order of drawing lines and angle within each layer is also very crucial.

During the 3D printing process, if the metal powder particles fail to melt completely or if there is a delay in clotting, minuscule bubbles could appear. The ability to withstand fatigue and fractures is important, as these metal components are supposed to support the weight of an object. Minor bubbles or gas pockets could be critical flaws. To achieve a perfect density by preventing bubble formation, the beam’s speed must be balanced and adjusted to suit different types of alloys.

This process demands additional attention when using metals of alloy elements. Unlike pure metals, alloys can experience a large gap in temperature and be able to exist in both solid and liquid states if their composing elements carry a great difference in melting points. In these cases, bubbles are easily made. Although alloy properties are very important, a composition of alloys with distinct melting points is required and the difference of these melting points must be maintained at a minimum.

That is, the development of suitable alloy metals for 3D printing, including technology for assigning a product’s cross section and designing a laser beam’s pass-through, is the bottom line of component manufacturing technology. In addition, the thickness of a component is closely related to the diameter of metal particles. Therefore, it is recommended to design the final product to be as thick as the particles it is made of, and vice versa.

The Future and Mission of 3D Printing

The 3D printing process creates an extremely complex structure that cannot be produced through conventional precision casting or processing methods. In that sense, even components of the same purpose can be designed with completely different structures using 3D printing. Thus, it is possible to reinforce the component’s functionality by reducing the component’s weight or enhancing its cooling performance.

It is now possible to manufacture components to produce their final shapes with special alloy metals, which had been impossible with conventional processing methods. As of recently, only a few types of metals were available for 3D printing. However, the low prices and excellent quality of metals now available will enable new developments of special steel 3D printing materials that meet the purpose of each component, expanding the spectrum of 3D printing.

As powdered metals accumulate together almost instantaneously, alloy elements do not diffuse or segregate. It is possible to obtain a supersaturated solid solution of alloy metal that has refined grains, which will allow for uniformity in texture.

Traditional metal component manufacturers, including GE, are now pursuing the 3D printing process as a transitioning path to digital manufacturing. They believe that 3D printing, a combination of precise mapping software, high-speed 3D printing devices and printing materials, will bring new solutions to their business.

Furthermore, enterprises are now being given the task to discover a multi-component special steel alloy that fits the manufacturing businesses’ demand. Various alloy powders are also expected to further develop so that 3D printing can be recognized as an optimized method for manufacturing components made of special steel in the future.

Written by science technology columnist Dr. Junjeong Lee

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

POSCO partook in this year’s Offshore Technology Conference (OTC), held between May 2 and 5 in Houston.

OTC is the biggest international conference for offshore operation technology, and consists of technology seminars and exhibitions related to offshore plants and equipment.

POSCO has participated in the OTC for nine consecutive years, starting in 2008. This year, specifically, POSCO maximized its promotional effectiveness by setting up an exhibition booth with domestic offshore equipment manufacturers to promote finished solutions that ranged from World Premium (WP) products to equipment.

POSCO and offshore equipment manufacturers have actively and collectively sought new clients by holding technology meetings with engineering, procurement and construction (EPC) companies.

POSCO configured the OTC exhibition booth, which focused on technology solutions for thick plate and high manganese steel, and showcased various products and technologies to visitors, including four types of high manganese steel and 13 types of utilization technologies and component solutions.

In addition, POSCO promoted technology agreements and strengthened its network with material certificate authorities, ordering bodies, EPC companies and manufacturers in order to stimulate new orders for high manganese steel.

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Until recently, POSCO-IDPC, a steel processing center in the Bawal Industrial Area near Delhi, India, experienced such setbacks, but thanks to their development of new transportation methods, they have been able to resolve many of these issues.

Taking care of business

Established in 2007, POSCO-IDPC supplies steel products of POSCO Headquarters, POSCO-Maharashtra and POSCO-ESI to its major customers in Northern India, including carmakers Maruti Suzuki and Honda Cars India.

Originally, the company imported steel coils from POSCO Headquarters through Kandla, a state-managed port, as it imposes the lowest customs fees and transport charges on imports. However, there were often a number of problems with the coils due to careless handling, as well as rust damages caused by chemical products or fertilizers which were placed near the coil yard. Additionally, demurrage charges, fees payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed, were common.

In an effort to solve these problems, POSCO-IDPC established an office in Kandla Port in 2012, staffed by employees capable of handling the existing issues. As a result of their efforts, the company was able to reduce the losses caused by coil damages and rust, which had amounted to $20,000 annually.

However, there were still roadblocks ahead.

A bump in the road

According to India Today, a report commissioned by the Transport Corporation of India Ltd (TCI) stated that the trucking sector contributes 4.5 to five percent to India’s GDP and is an integral component of the transportation sector. However, poor infrastructure has led to numerous traffic jams on highways, delays at toll plazas and accidents, costing the Indian economy nearly $600 million in lost truck-operating hours annually.

Transporting from Kandla Port, located a lengthy 1,200 kilometers from POSCO-IDPC, by truck gave rise to a number of such problems, resulting in delays and increased carrying charges. During the rainy season, problems escalated as roads worsened and coils kept in the port were damaged by flooding waters.

Smooth sailing at Mundra Port

To avoid these setbacks, POSCO-IDPC searched for another port where railway transportation was possible. Mundra, a privately owned port located 75 kilometers from Kandla, had a complete system in place, managing every aspect from storage to railway transportation. However, compared to Kandla Port, it was costlier, and coils were more likely to be damaged due to more frequent handling.

Through continuous negotiation with Mundra Port, POSCO-IDPC was able to settle on a reduced transportation cost, while securing superior transportation quality.

Nowadays, coils unloaded at Mundra Port are piled in the yard and loaded into containers specifically designed for handling steel coils. The containers are then transported to the station nearest to the POSCO-IDPC plant by railway and then delivered to the customer by truck.

Steering clear of damages

Furthermore, the company enhanced the transportation method so that clients could receive the product in its original state. To avoid accidents and product damages due to poor road conditions, POSCO-IDPC altered its packing techniques by connecting pallets of loaded products and tying multiple bundles of coils together.

In doing so, the quality of coil transportation was remarkably improved resulting in almost zero claims, and the company was also able to reduce actual expenses on transportation and insurance. After 7 months of operation from June 2014, POSCO-IDPC saved $290,000, excluding insurance merits. If POSCO-IDPC imports 80,000 tons this year, it will save a total of $600,000.

With an annual steel processing capacity of 200,000 tons since the establishment of its second plant in April 2013, POSCO-IDPC expects an increased growth through consistent sales increases, and hopes to expand its annual sales to 220,000 tons in 2015. On top of that, POSCO-IDPC will continuously endeavor to achieve maximum customer satisfaction with the best transportation quality as an admired coil center of one of the world’s leading steelmakers.

The images that cross your mind may seem apocalyptic, or even impossible to fathom. There is barely a part of our lives today that is not influenced by the metal, and it is not an exaggeration to say that steel is perhaps the most significant component of the modern world. Without it, civilization as we know it would cease to exist. Let’s take a look at a few ways the world would be a different place without steel.

Skylines would be incredibly boring.

Structures such as skyscrapers and towers would be inconceivable without steel supports and cables. Therefore, buildings would be low-rise at their tallest, making densely populated cities devastatingly uncomfortable. It’s hard to imagine a world without the likes of the Burj Khalifa, the Eiffel Tower or the Empire State Building, all of which utilize steel as a main construction component.

We’d have very few options for dinner.

The food we eat today has been refined in factories with steel tools, processed with steel equipment, baked in steel ovens and preserved in steel cans. It is delivered to us via steel trains on steel rails, or by steel trucks over steel-reinforced roads. As such, in a world without steel, our food sources would be limited to what could be cultivated locally and the possibility of faminewould be persistent.

Getting in touch would take for-ev-er.

(Image source: http://bit.ly/1dgLFuc)

Without steel to manufacture telephones, computers or even mail trucks, we would be stuck relying on less than efficient carrier pigeons (which were actually a thing a few thousandyears ago) or the pony express. So much for instant connection.

Reading material would be extremely limited.

(Image source: http://bit.ly/1tNFW6q)

Newspapers, magazines and books we read today are mostly printed on a steel press. Even the paper is made from wood which is cut with steel implements and processed in steel machines. Mind you, there wouldn’t be any steel-plated pens, either, so quills would be used to write and copy the material. Of course, there might be bronze movable type printing, but it would still take a very long time and amount of patience to carry out.

Disease would run rampant.

Stainless steel has contributed greatly to improved sanitation in hospitals, restaurants and other public environments, and has helped to save the lives of millions. Easy to clean, it is more hygienic, impervious to corrosion and scratch-resistant, and is capable of standing up to harsh sterilizers, heat and heavy use, preventing deadly bacteria from surviving on its surface. Without it, the constant threat of diseases such as Ebola and measles would be very real.

Unemployment would rise and the economy would crumble.

Crude steel production reached 1.66 billion tons worldwide in 2014 which only says one thing about our world… it’s growing. It’s estimated that more than 95 countries are producing steel today, with more than two million employees worldwide, and a further two million contractors and four million people in supporting fields. Without this vital industry, the world economy would suffer and many people would be without jobs.

A glimpse into the world of steel

Fortunately, we do live in a modern world where steel does exist and its importance is clear. Yet few people tend to notice it, or understand how it works. Which is why TenarisUniversity, in conjunction with the World Steel Association’s steeluniversity, has launched the massive open online course (MOOC), “Introduction to Steel.”

This lively online learning program will feature the basics of steel melting, steel’s historical and cultural context, its relationship with society and the sustainability of a world supported by steel by utilizing everyday examples, demonstrations and film footage of steel making. Additionally, it will encourage community interactions between students and the professor.

“We believe in the highest standards of education to develop people all around the world,” Rolando Lange, Director of TenarisUniversity noted. “With this MOOC, we hope students will get passionate about steel as a material and learn about the critical role it plays in our society.”

Comprised of a four-hour framework, the course is open to all free of charge. It starts on June 2 and will run for two weeks. Registration is now open. Click here to enroll in the class, or for more information.

In the second part of POSCO Weekly’s series featuring the recipients of POSCO’s Excellent Overseas Affiliate Prize, we introduce to you POSCO-CLPC, the recipient of the Market Frontier Prize, to share its achievements in amplifying sales and solidifying client relationships. (See the previous post here.)

POSCO-CLPC (President Lee Joo-sung) was established in July 2010 in the Shenyang-EU Economic Development Zone in Liaoning Province, China. Due to the increased automobile production in Northeast China, and subsequently the rising demand for automotive flat products, POSCO-CLPC now has an annual processing capacity of 170,000 tons.

POSCO-CLPC processes and supplies automotive flat products to carmakers such as FAW-VW, a joint venture between China FAW Group Corporation and Volkswagen, BMW Brilliance Automotive and Shanghai General Motors, using a just in time (JIT) production strategy. It also provides steel processing services to automotive component manufacturers in order to meet customers’ needs.

Starting with a sales of 38,000 tons in 2010, POSCO-CLPC has been showing steady growth, reaching an accumulated sales of 500,000 tons in December 2014. In 2014 alone, it achieved its highest annual sales record of 158,000 tons.

The year 2014 was a meaningful one for POSCO-CLPC, as its business endeavors to prepare for the increasing manufacturing capacity of BMW Brilliance and Shanghai GM in the Shenyang region came to fruition. After successful testing on seven auto parts, POSCO-CLPC became the new supplier of those parts and components, and its sales for BMW Brilliance has since doubled, compared to its 2013 figures.

Additionally, POSCO-CLPC has won a contract to offer blanking and molding services to BMW Brilliance for the BMW2 model, solidifying the relationship between the two companies.

Meanwhile, POSCO-CLPC’s sales volume for Shanghai GM and automotive component manufacturers has remarkably increased in response to the business trends of customers and the expansion of its supply to manufacturers of auto parts.

In recognition for its achievements in amplifying sales and solidifying relationships with its clients, POSCO-CLPC was selected as an Excellent Overseas Affiliate and awarded the Market Frontier Prize in March.

POSCO-CLPC is planning to increase its sales of automotive parts for upcoming vehicles in partnership with POSCO Headquarters, and to actively seek new opportunities to grow its business with global automotive component manufacturers that are scheduled to relocate to Shenyang. Also, it will expand its World Premium (WP) products and develop new opportunities for the sales of a variety of steel products, including stainless steel and electrical steel.

A Breathtaking Sound Experience, ‘Korando C’ Speaker System
For the first time in Korea, Ssangyong Motor offers the state-of-the-art sound quality through speakers with POSCO’s magnesium sheet applied, to 2015 ‘Korando C’, Ssangyong’s new automobile. The sound quality of the speaker is far beyond the quality of 6.5 inch-paper speaker, which is applied to 2000cc SUVs of default features.

As a component that plays sounds, the magnesium diaphragm of ‘Korando C’ receives electronic signals and sends out vibrations into the air. Since a diaphragm is the main component that determines the sound quality, it must be lightweight, high in rigidity and automatically dissipates resonance which is irrelevant with the genuine signal. Previously, speaker’s diaphragms were mostly created with paper materials but they were insufficient in high-tone playback due to paper’s shortage in intensity. In order to improve the audio quality, various materials have been considered for development.

Magnesium Diaphragm: the Secret of Full Spectrum Audio Performance
Magnesium sheets are evaluated as the most idealistic material for speaker diaphragms so far. Lightweight and stern, the magnesium sheet can create high-pitch yet pure sound due to the material’s expansive range of frequency. As an ultra-light material, the magnesium sheet can cover a full spectrum from a low note to a high note even with a feeble driving force. Compared to other materials, the magnesium diaphragm provides softer and richer pitch while also offering refined tone with its excellent transmissibility. Especially, the magnesium sheet is less susceptible to unnecessary vibrations that lead to an unpleasant resonance noise. As a result, the high-quality dynamic speaker device, which realizes the sound that is closest to the original tone, is obtained.

POSCO’s Magnesium Sheet behind Your Dynamic Sound on the Road
The magnesium sheets supplied by POSCO undergo the process of figuration, surface treatment, speaker manufacturing, and finally get installed in automobiles. Currently, the magnesium sheets are produced at POSCO’s magnesium plant, located in Suncheon, Jeonnam Province, where the ultra-thin warm-rolling technology is secured. As Ssangyong Motor successfully implemented the magnesium diaphragm speaker to their new ‘Korando C’, they are considering the application of the magnesium diaphragm for other automobiles in the future.

More Applications of POSCO’s Magnesium Sheet in the Auto Industry
Last September, prior to ‘Korando C’, POSCO has already conducted a joint development with Renault Samsung Motors for magnesium sheet auto parts. In fact, POSCO’s magnesium sheet was applied to ‘New SM7 Nova’, specifically where the back seat and the trunk meet, largely contributing to vehicle weight reduction. Being the world’s first case of automobile application, POSCO’s magnesium sheet reduced up to 2.2 kg by replacing the previous component of 3.6 kg with the magnesium piece that weighs only 1.4 kg. Since the outstanding quality of the magnesium sheet has been confirmed through POSCO’s current step into the automobile market, POSCO is planning to accelerate development of the magnesium sheets for television and audio in the upcoming future.

Steel products, an essential component for building cars!

The world’s first automobile, ‘Patent Motorwagen’ made its first appearance in 1886 and since then, over the past 130 years, cars have become status symbols and toys for the wealthy but also a convenient means for travelling from place to place. The essential component that builds cars is… steel!

Producing one car requires approximately 900 kilograms of steel! Are you surprised by the amount? They say that there are over 20,000 car components alone. Steel products are used throughout the automobile manufacturing process from the basic car body to engine motor, wheels to other major car components.

Wheels, doors, bumpers… steel plates that are suitable for each car component

Automobile structures can be largely classified into two sections called BIW (Body in White) used for humans and freight and Chassis, space for the engine motor, tire wheels, breaks and other components necessary for driving.

Steel products used for cars are categorized based on their strength, durability and metallic characteristics. Car steel sheets that are suitable for each car component is applied.

For example, the hood or door of automobiles need to use steel that has some malleability in order for the parts to be shaped. At the same time, they must be durable to protect from exterior shocks such as car accidents and also have high quality exterior plating. To meet all these needs, 340MPa grade Bake Hardenable steels are used.

POSCO supplies to ‘Global Top 15’ Auto Companies

POSCO is a supplier to automobile companies not only based in Korea, but all over the world including companies such as Hyundai Motors, GM Korea, Renault Samsung Motors, TOYOTA, FIAT, Ford, Peugeot and more. In order to be a supplier of automobile steel sheets to such companies, there is a rigorous quality evaluation process that must be passed. POSCO has developed leading technologies and solutions to meet the needs of customers. Through close client communication and management, POSCO has been able to gain the trust of clients. Based on these marketing activities, POSCO aims to strengthen its position as a “Global Top Auto Materials Supplier”!

[box] Supplying products that meet the needs of clients globally

POSCO receives favorable reviews from Japan!

In the case of the Japanese auto market, companies preferred auto steel materials produced in their native country. In the 1990s, POSCO decided to proactively target sales marketing activities to the Japanese auto market. Eventually through close customer contact, care and by providing useful information about auto components’ quality, POSCO gained the trust of Japanese customers. As a result, POSCO supplies Japanese auto company plants not only in Japan, but also across their global network of plants in countries such as China, Thailand and India.

POSCO surpasses the Great Wall of China!

Auto manufacturing and sales numbers rose more than 20 million annually since 2013 making China the world’s largest car market. According to research by Global Insight, compared to the forecasted average global auto market growth rate of 3.6%, the forecast for China is a steady 6.5% growth rate from 2012. Based on these growth projections and to advance into the China market, POSCO built a processing center in China. Moreover, POSCO has addressed expanded demand for galvanized steel sheets by operating a Continuous Galvanizing Line (CGL) in Guangdong. In addition, to bolster Solution Marketing efforts, POSCO put in place a technical service center to target the optimistic outlook in the China market.

POSCO stands out even in the European market!

POSCO is providing competitive materials and technology to satisfy the standards of German auto manufacturers. Being able to meet the particular standards of leading German auto companies was a great achievement for POSCO as it recognized POSCO’s products as high quality. POSCO is also supplying to companies such as Renault, Fiat, BMW and plans to continue providing to the premium market.

Expanding the market from Mexico to the U.S.!

With its foothold in Mexico, POSCO is spreading sales of its automotive steel sheets out to the US market as well. Currently POSCO Mexico is supplying Mexican car manufacturers with materials, and 70% of the cars manufactured locally are being exported to the U.S. Furthermore, by providing differentiating materials, POSCO has greatly contributed to reducing production costs for auto manufacturers in Mexico.[/box]

POSCO’s Light yet Strong Automobile Steel Sheets

After POSCO CEO Kwon Ohjoon’s inauguration, he talked about automobile steel sheets as an example of the harmony of marketing and technology during a special lecture to employees.

“It’s true that high strengthening is necessary for weight reduction of cars, however excessively applying these measures might cause problems during the car manufacturing process. This is why Solution Marketing that provides the customer with a full problem-solving package consisting not only of steel materials but also formability and welding technology is so important,” said the CEO to emphasize the importance of unique Solution Marketing that differentiates POSCO from its competitors.

The idea goes hand in hand with the current trend of the automobile market: There is a growing drive to make cars lighter in order to boost fuel efficiency, while safety regulations are becoming stricter.

Pictured here: Robot at work at the Gwangyang Steel works

In order to fulfill the newly emerging needs of car manufacturers, POSCO is spurring its drive towards development and sales of AHSS (Advanced High Strength Steel) and other world-class premium products. AHSS is lighter yet stronger compared to other automobile steel products, making it an ideal material not only for the car exterior, but also for other auto components including side sills, which are attached to the lower body beneath the doors to absorb external impact.

As international regulations governing collisions and the environment are becoming more rigorous, the popularity of AHSS is spreading across the globe from the US to Asian car manufacturers. POSCO plans to further expand the market share of AHSS by providing customized technological solutions for various car manufacturers. POSCO’s endeavors in technology development and marketing are driven towards the goal of becoming the ‘World’s Number 1’ in automobile materials.

It is exciting and reassuring to know that many of the cars we see in our everyday lives are suited in a coat of POSCO steel armor!

Pictured here: POSCO’s CEO, Ohjoon Kwon

Direction for POSCO amid Current State of Steel Industry 

In the Financial Times story printed on April 20, CEO Kwon expressed anticipation for POSCO’s future. CEO Kwon, aims to more than double the steelmaker’s operating profit margin to 10 per cent over the next three years. In order to improve profitability and financial strength, CEO Kwon’s goal is to find the most urgent business areas to let go of and to focus on developing technologies to create high-value advanced steel and further invest in core materials business, particularly for lithium and nickel. CEO Kwon elaborated on this during his speech about ‘POSCO the Great’ which you can read about here.

Nickel is an essential component for the production of stainless steel. POSCO is working towards reducing the production costs for nickel by as much as 20 per cent which could in turn reduce costs for stainless steel which is prevalent in every day objects around us including kitchen appliances, medical equipment, exterior walls and roofs and more.

According to the World Steel Association, global steel demand is expected to see lower growth this year. Weak demand and oversupply of steel is an issue that will not disappear any time soon. Demand from China has dropped to 3% from 6.1% last year and it is expected to drop even further to 2.7% in 2015.

Nevertheless, with a strategic focus, CEO Kwon is optimistic for greater performance over the next three years.

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