POSCO introduced its advanced solution marketing campaign ranging from energy steel products to end products at OTC held in Houston, Texas, on April 30th.

POSCO decorated various technologies and solutions in the Main hall

The main purpose for the convention was maximizing promotion activity by POSCO’s unique solution program. Therefore, from the last year, POSCO set up the booth in the main hall (NRG Center) with the global major companies including Exxon, Siemens and GE. POSCO is the first domestic company that set the booth at NRG center.

Technologies from the fundamental materials to final products

POSCO has got huge attentions from by participants by presenting various unique solutions ranging from materials and end products, including 9% Ni steel LNG storage tanks and LNG fueled ship equipped with storage tanks made of high-manganese steel, large diameter thick wall welded steel pipe that POSCO’s high-strength panels applied and the Fitting, the joint between the pipe, the world’s leading wire rope that is made of ultra-high-strength for offshore construction, membrane for fuel storage of LNG carrier and tubes for energy mining.

Strengthen the relationship with global partners

In addition, POSCO and marine equipment manufacturers held a technical meeting with EPC (Engineering, Procurement and Construction) companies to discuss and encourage new projects. POSCO also engaged in consultations with a range of companies, including potential clients located near Houston in order to penetrate a new market for World Premium steel products.

POSCO has been participated the OTC every year since 2008 and established strong network with major oil companies and global ETC companies and promote POSCO’s finest high manganese steel.

Jong-sub Lee, executive VP of POSCO (third from right) explains POSCO’s products to Young-jin Kwon, Mayor of Daegu Metropolitan City (fourth from right) and Young-doo Kim, VP of Korea Gas Corporation (second from right) at the POSCO exhibition booth.

The Asia Pacific Gas Conference is the only gas-related international conference in Korea, first held in 2015. This year, under the theme of natural gas in the future energy market, more than 100 domestic and overseas companies participated, and showcased new technologies and products.

POSCO promoted its high manganese steel, 9% nickel steel, stainless steel and POSCO E&C’s LNG Terminal design and construction technology during the event.

The exhibition space at this year’s event was divided into Product, Solution, PR and Business zones, and on display were steel products related to LNG carriers, high manganese steel LNG storage tanks and onshore LNG storage tanks. In addition, visitors were able to experience the production of POSCO GIGA STEEL and POSCO’s smart via VR videos.

The conference covered topics such as the natural gas industry’s development plans, natural gas and LNG infrastructure as well as new transportation and storage technologies. POSCO also presented a case study of high manganese steel development and production during the part of the conference focused on new material solutions for the LNG industry.

Visitors to POSCO’s exhibition booth watch VR videos about the steelmaking process and the qualities of POSCO GIGA STEEL.

POSCO was able to take away key insights on the recent and future trends of the gas industry, create new business opportunities with potential customers and expand its business with existing customers during the conference. With the new-found knowledge and partnerships, POSCO will work to find more customized and innovative solutions for its partners in the gas industry.

Cover photo courtesy of APGC 2017.

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The Idea Marketplace (IMP) is POSCO’s representative venture start-up support program which connects venture companies with investors, or attracts direct investments by helping prospective venture businesses and investors build a network and compare with other compelling venture ideas.

POSCO CEO Ohjoon Kwon gives a speech at the 12th Idea Marketplace, addressing economic improvements through partnerships with local industries and fostering the growth of promising venture companies.

In a welcoming speech, POSCO CEO Ohjoon Kwon said, “The most obvious way to drive future growth in our slowing economic environment is to discover innovative ideas and commercialize them. I will actively support the creation of jobs that are combined with the local economy of Gwangyang city.”

POSCO selected and nurtured ten venture companies in their support program this year. Their fields ranged from medical, the internet of things (IoT), music to big data. They were verified by outside experts for their business feasibility and received mentoring in company briefing sessions for ten weeks.

During the IMP, an IR event was held for investors, and a prototype exhibition hall took place alongside. The event involved representatives of venture companies engaging in one-on-one Q&A sessions with members from the judging committee.

POSCO CEO Ohjoon Kwon, center, talks to guests at the Idea Marketplace venue. From right, Weonpyo Sun (president of the Yeosu and Gwangyang Port Authority), Hyunbok Jeong (mayor of Gwangyang) and Seongho Park (director of the POSCO Creative Economy Promotion Team).

In this Idea Marketplace event, the Excellence Prize went to Futures Bio Works (CEO Woosoon Chang), for its development of a shape memory polymer microneedle vascular anastomosis device. The company Algorigo (CEO Gilhwan Cha) took home the Excellent Start-up Prize for building a smart posture tracker platform that helps people to develop healthy sitting habits.

Since 2011, POSCO has selected and fostered 132 companies, 59 of which have received direct investments of approximately KRW 9.2 billion from POSCO. The amount of foreign investments the growing companies has attracted reached 59.4 billion won, which contributed to the creation of jobs for 572 people.

Prospective business founders or venture companies that want to take part in the POSCO Idea Marketplace can apply for the program at any time via its website: http://www.poscoventure.co.kr.

Nurturing and Supporting 14 Startups This Year Through Idea Marketplace

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Including Kwon, the CEOs of major steel companies such as Wolfgang Eder (chairman of the World Steel Association and voestalpine AG), John Ferriola (vice chairman of the World Steel Association and president of Nucor Corporation), Lakshmi Mittal (chairman of ArcelorMittal), Mario Longhi (president of the United States Steel Corporation), Kosei Shindo (president of Nippon Steel & Sumitomo Metal Corporation) and Yu Yong (chairman of the Hesteel Group) participated and discussed key pending issues facing the steel industry in an Executive Committee meeting on October 10.

Members of the Executive Committee posing for a photo on October 10. From left to right: André Gerdau Johannpeter (CEO of Gerdau Group), Wolfgang Eder (chairman of voestalpine AG), Ohjoon Kwon (CEO of POSCO), Lakshmi Mittal (chairman of ArcelorMittal), Paolo Rocca (chairman of Techint Group), Eiji Hayashida (president of JFE Holdings), Heinrich Hiesinger (chairman of ThyssenKrupp), Yu Yong (chairman of the Hesteel Group), Mario Longhi (president of the United States Steel Corporation), Kosei Shindo (president of Nippon Steel & Sumitomo Metal), John Ferriola (president of Nucor Corporation) and Sajjan Jindal (chairman of JSW Steel).

On the second day of the meeting, October 11, movers and shakers of the world steel industry held long discussions on the sustainable development of the steel industry in three breakout sessions. CEO Kwon presided over one particular session which went over steel’s roadmap for the future via new technology, and engaged in a spirited discussion with around 50 representatives from different steel companies.

Aside from these discussions, the World Steel Association held an annual conference, a BOD meeting and a general meeting to share issues of mutual interest and approve key matters, such as its business plan and the 2017 budget.

The World Steel Association, established in 1967, is the most authoritative organization in the steel sector, focusing on activities to increase people’s awareness of the steel industry and its interests. The association began with 18 member firms from 11 countries. At present, the organization is made up of 170 members, ranging from steel companies, relevant associations and research centers. Brussels, Belgium is home to the headquarters of the World Steel Association.

The association’s BOD consists of steel producers that have an annual capacity of over 2 million tons. At the moment, the BOD has 73 companies of approximately 30 nations as regular members. The Executive Committee is the top decision-making body of the organization, deciding the direction of major business projects such as the steady growth of steel, steel’s role in the environment and the market development of steel. The committee consists of 15 members whose terms each last three years.

The 2017 annual general meeting of the World Steel Association is scheduled to be held at its headquarters in Brussels, in memory of its 50th anniversary.

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POSCO held a kick-off event for its IP G-Project on October 30 to share project plans for six new projects

Eighty members attended, including CEO Ohjoon Kwon and Project Director of the IP G-Project, who shared the project plans for six new IP G-Projects and resolved to successfully complete the projects. CEO Kwon said, “Detailed plans for achieving the goals for the IP G-Project have been well established.” He also asked those in attendance to make effort to achieve their goals by working closely with other departments.

The IP G-Project integrates mutual IP projects, research assignments and programs into one strategy for efficiency, and started with the intent to expedite Innovation POSCO 2.0 by concentrating the capabilities of all its companies. Under the previous PWS (project-based working system), cooperation between companies and departments within the IP project was possible, but it was difficult to integrate with other activities. So POSCO renamed the projects which require cooperation between research assignments, IP projects and unique programs to the IP G-Project and decided to operate it at a group level.

IP G-Project facilitates the cooperation between all work areas, and is a top-down system that works by themes suggested by the board of directors, which is then approved by the CEO. The goal is to generate over 30 billion KRW in financial performance within the next three years. Unlike IP projects led by professional executives, IP G-Project is managed by c-level executives who operate as the project director.

By establishing a plan to complete each project, all related activities are integrated with concurrent engineering strategies, accelerating the performance outcome. Project progress is directly monitored and guided by the CEO. Through integrated VP (visual planning), the effect of cooperation is maximized.

At the end of the year, the continuation of the project will be reviewed by management and if necessary, performance will be constantly evaluated, even after completion of each project. POSCO plans to put all its efforts into creating outstanding results through the IP G-Project and to achieve Innovation POSCO 2.0 as soon as possible.

This recently developed innovation maintains moldability and corrosion resistance of normal stainless steel grades while greatly lowering the content of expensive raw materials such as nickel and molybdenum, raising cost competitiveness.

Lean duplex stainless steel with super ductility using a strip-casting process has been produced using poStrip technology, POSCO’s unique, new steelmaking method. The technology has significantly simplified pre-existing processes such as continuous casting, heat treating, rough rolling and surface finishing, while integrating them into one. With poStrip technology, molten iron can immediately produce hot rolled coils without additional processes, drastically reducing the consumption of energy and emission of carbon dioxide, nitrogenous compounds and sulfur oxides.

POSCO first developed lean duplex stainless steel with super ductility using a strip-casting process in 2009 and started mass production in September 2014 after putting the material through rigorous and continuous quality control tests and optimization processes.

Currently, lean duplex stainless steel with super ductility using a strip-casting process is most often used for tableware and construction materials, though POSCO plans to expand its demand to other products, such as indoor piping and home appliances, through continuous solution marketing activities.

The Steelie Awards have been presented at worldsteel’s annual conference in October since 2010. They recognize member companies or individuals for their contribution to the steel industry over a one-year period in a series of seven categories impacting the steel industry. Categories include Website of the Year, Innovation of the Year and Excellence in Education and Training. POSCO was awarded the Excellence in Sustainability Reporting Steelie in 2010 and received the Innovation of the Year award in 2012 in recognition of the company’s own POSCO-Carbody Concept for Electric Vehicle.

Yet, the quality standards for advanced steel used for drilling, producing, transporting, conserving and handling energy resources for oil and gas are becoming stricter so that steel can better endure the harsh drilling environments of the deep sea and polar areas, two domains on the radars of oil exploration geologists.

At this year’s Offshore Technology Conference (OTC), the world’s largest marine technology exhibition, which was held from May 4 to 7 in Houston, Texas, POSCO showcased its efforts on such developments. Included were its lineup of high-grade steel products, as well as the firm’s cross-department collaboration system between steel plants, laboratories and marketing departments, among others, to improve the development of functional, advanced steel.

Considered the leading forum for gathering and sharing offshore oil and gas information (as well as unveiling some impressive machinery), the goal of the conference, according to its website, is to “advance scientific and technical knowledge for the safe, environmentally friendly and sustainable development of offshore oil and gas resources.”

Despite recent low oil prices, the 2015 OTC attracted over 94,000 attendees, making it the sixth largest in its 47-year history. Additionally, approximately 2,700 major oil and global EPC (Engineering, Procurement and Construction) companies from 37 countries participated.

Among these, POSCO represented South Korea, aiming to continue its solution marketing activities for advanced steel for energy, production and technology, as well as steel utilization techniques.

Introducing a variety of the company’s products and technologies, POSCO’s exhibition consisted of four zones: energy plants, energy pipes, shipbuilding, and manganese steel sectors. At the booth, a video on steel-making technology was presented to help attendees better understand steel products.

POSCO displayed its strength as a “total solution provider,” which has helped the firm to simultaneously strengthen its position in the steel market and discover new business opportunities.

Since it first participated in the OTC in 2008, POSCO has operated a booth annually as part of its demand development activities, which have led to the company’s increasing development of energy steel in a short period of time. Moreover, POSCO’s progressive product promotion and supplier certification activities have resulted in a successful long-term contract for the blanket supply of energy steel, and have solidified technical cooperation with clients.

As new advancements are made in offshore drilling technology, the utilization of steel in the industry will also evolve. POSCO will continue to adapt to such changes, and will work hard to manufacture sustainable, quality products to meet the demands of its clients.

What’s POSTIM?
POSTIM is an innovative model developed by POSCO and applied in August 2014 to achieve the corporate vision of `POSCO the Great’. At the event, participants looked back on the efforts and traces of POSCO Family to implement `POSCO the Great`, and shared the progress results and best practices from POSTIM, which spans PWS (PJT-based Working System), QSS+ (Quick Six Sigma plus), and SWP (Smart Work Place). In addition, through the `Contest for an Excellent Project Idea`, they shared creative ideas from the shop-floor that can contribute to improving profitability, with a special awards ceremony to recognize the most promising ideas.

PWS (PJT-based Working System)
Many global companies such as Google, GE, 3M and more, are practicing various projects as they consider projects to be the key to efficiency. Through ‘Innovation POSCO 1.0’, POSCO has drawn a number of lucrative projects in each corresponding sector of production, sales, research, finance, new business and management support. By creating exclusive teams and members for projects, POSCO provided an optimal circumstance where project participants could concentrate on their tasks.

QSS+ (Quick Six Sigma plus) 
Ever since its completion in 1937, the Golden Gate Bridge in San Francisco carries a hundred thousand cars every day without facing any problem. Such durability is achieved by annual maintenance activities and recovery with adequate investments.

With 24-hour operating facilities older than two decades, POSCO also requires consistent management and investment in order to maintain its competitive edges. Accordingly, POSCO developed QSS+, innovative activities compatible for steel mills and has been strengthening its facilities in pursuance of a safe working environment. As POSCO deploys customized innovative activities by upgrading its core facilities, QSS+ plans are expanding with a plant manager’s lead. As QSS+ plans are settled, plants go through a major reconstruction or plan an independent activity that is appropriate to each department’s characteristic.

SWP (Smart Work Place)
From winning the 2014 UEFA Championship and 2014 World cup championship, Germany’s football teams are leading the paths of the world football. Behind such achievements, there were IT infrastructure and leadership that created positive atmosphere to the players.

Meanwhile, POSCO also embodies SWP (Smart Work Place) that promotes employees’ involvements through convenient IT infrastructure, advanced working method, and sharing gratitude. With the spread of mobile reporting system, working process has been expedited and video conference allowed meetings without limitations to time and space. Moreover, employees are using smart notes to immediately respond to client’s request and inconveniences on site. Improvements in reporting system extended task immersion and simplification in HR, training and innovation system also boosted employees’ focus on their accounts.

IP Festival 2014 Event Sketch
At the ‘IP Festival 2014’, executives and employees shared the outcomes and best practices from POSTIM. Groups and individuals who have displayed outstanding performance throughout the year were awarded at the event.

• Groups and individuals who had excellent project performance received awards

• Best cases of projects were introduced at the event

Let’s see what other interesting activities were shared at the IP Festival 2014!

• Employees are participating in a performance that they prepared during the break times

• Employees engaged in performances that induced participation in between each session

On October 15, OECD and the Ministry of Employment and Labor co-hosted a conference on ‘Employment and Skills Strategies’ in Korea. At the conference, POSCO announced a report on its management result and the best practice cases of POSCO’s National Human Resource Development (HRD) Business, under the title of ‘Mutual Growth Through Talents Cultivation for Small and Medium-sized Enterprises (SMEs)’. As POSCO continues its history of being nominated as the Best Consortium Education Institution and the chair of the Council for Shared Growth Human Resources Training for seven consecutive years, we would like to introduce you today about what POSCO is offering for the National HRD Consortium Business.

National Human Resource Development (HRD) Consortium Business
As a crucial company that has been influencing the national economy since the 1960s, POSCO has been conducting its social responsibility by responding to the government’ request on Korea’s human resource development and SME cultivation with HRD Consortium department starting from 2005. The National HRD Consortium Business is a platform that major companies with excellent education infrastructure supply free trainings for employees of SMEs that are relatively short in learning opportunities. As an exchange, the government provides partial expenses to the major companies that operate the National HRD Consortium Business. With outstanding education content, the latest facilities and the 40 years of know-how, POSCO has been leading the nationwide consortium business.

Training Curriculum: From Recruitment to Retirement
Currently, POSCO is providing total 130 courses under the categories of technology, safety, IT, and ethics. Customized for each trainee companies, the courses provide a wide range of lectures from technical education for newcomers to E-MBA curriculum for executive members and even ‘Green Life Design’ program for prospective retirees.

Methodical Development of Talents for SMEs
Not only are the education trainings provided but also education consulting, systematic on-the-job training, learning systematization and many more programs are offered in order to implement appropriate solutions to reinforce the trainee company’s competence. The ‘S-On-the-Job Training’ is a program that supports systematic skill development, especially the program focuses on each corporation’s own necessity at the site. Also, the learning systematization is a business model that is designed to share the practical knowledge and know-hows that only the on-site workers could possess. Through these training programs, POSCO supports its hundreds of trainees to learn essential techniques and progress autonomously as they return to their work fields.

Cultivating Professional Talents and Field Oriented Skills

The ‘Corporation University’ and ‘Work·Study Parallel System’ have been operating since their launch this year. A long-term curriculum for prospective hires or current employees, the ‘Corporation University’ curriculum even supports those without undergraduate degrees in order to nurture them as highly skilled professionals through intensive technique trainings. The ‘Work·Study Parallel System’ is a government program created in 2013 for corporations to hire job applicants as learning employees in order to systematically train the requisite talents for the corporation. After completing 1~4 years of the training programs and assessment process, the learning employees are translated into full-time employees. With current registrations from 112 people of 21 partner companies, POSCO will develop curricular that are apt to each company’s demand and initiate the curricular starting next year.

Donghoo: The Best Practice Case of POSCO’s Human Resource Development (HRD) Business
Established in 2010, Donghoo was a start-up company that provides advanced steels for energy to POSCO. To produce these steel products, craftsmanship and technical skills are essential qualities for employees. However, due to the fact that 80% of their total employees are considered novice, stabilized operation of its factory seemed somewhat difficult. In order to amend the condition, Donghoo participated in the POSCO’s HRD Consortium Business. Their newcomers started with POSCO’s 3 months program and continued to receive organized education to advance as professionals. Donghoo’s consistent endeavor on education evidently appeared as an apparent growth in their management index. In addition, the training programs have granted faith and confidence, which are much more valuable asset to Donghoo. According to Kim Yong-soo, the CEO of Donghoo, they will continue to actively utilize the curriculums of the HRD Consortium in the future for further progress.

Since POSCO is fulfilling its social responsibility and SMEs are learning beneficial trainings without any cost, the HRD Consortium is truly an innovative and productive system that seems to be critical to building national competence in the future. As the Best Practice organization of the National HRD Consortium, POSCO will continue its role as an educational infrastructure that contributes to consistent and shared growth of the 21^st century.

POSCO hosted the 26th POSCO Family Technical Conference at POSTECH on August 20 and 21. The Conference is a special festival for engineers designed to raise the company’s technical competitiveness to the next level. Since it was first held in 1989, the conference has developed into an annual event that stimulate the development of new steel technology and enhance shared growth and customer values by reinforcing technical competitiveness across the POSCO family.

CEO Ohjoon Kwon stated in his opening speech that the key to overcoming current crisis facing POSCO is the ‘realization of technical POSCO’, and that participants should awaken the passions within them. Kwon asked engineers to take responsibility and reinforce the intrinsic competitiveness of steel through solution marketing. Also, he emphasized that “POSCO needs to hold a dominant position over competitors by maintaining an unapproachable technical barrier, and as POSCO is striving to foster the new growth industry through choice and focus, everyone should actively participate in securing a future mega growth engine”. Kwon also encouraged cooperation between engineers and researchers as well as the technical exchange between processes, for the acceleration of technical development.

A Place to Share Information and Discuss Various Topics 

On the first day of the conference, 24 sessions focused on clients’ use of products and manufacturing technology were held. 23 experts invited from local and foreign universities, research centers and companies presented theses and shared research results throughout each session. Those from POSCO family companies, outsourcing partners, clients, suppliers, universities, research facilities as well as POSCO employees also participated in the discussions, which made the event more meaningful.

Meanwhile, a technical discussion regarding POSCO’s main issues was held on the 21st. Over 2000 people involved and interested in POSCO were involved in this year’s conference and the participants actively engaged in the discussions! There were 24 sessions held on the first day and 28 on the second, while an overall of 249 theses were presented during these sessions. An outstanding total of 6450 theses have been presented throughout the history of POSCO’s technical conferences. It’s quite a lot, right?

The POSCO Family Technical Awards, a Motivation for Development 

At the ‘POSCO Family Technical Awards ‘ held on August 20, POSCO encouraged technical development by awarding 27 projects which achieved outstanding results and contributed to POSCO’s technological competitiveness.

Five projects including “The Establishment of Low-Cost Clean Steel Manufacturing Process based on Operations of Steelmaking Models” received the ‘innovation awards’, which is the top prize. Seven projects including “R&D of the Water Supply System for Reduction of Viscosity Bubbles in Ocean Discharge” received the ‘creative awards’, and eight projects including “The Development of Precise Control Technique for the Secure Supply of World’s Top Directional Iron Loss” received the ‘takeoff awards’. Nominees for the POSCO Family Technical Awards which holds the highest authority amongst those in POSCO Group’s technology unit, are selected strictly and fairly by judges upon standards such as achievement, technology and field applicability. The ‘challenge’ awards, ‘persistence’ awards and ‘unique idea awards’ which were newly established last year, were given to projects which lacked the ability to apply ideas to the field but developed know-hows in the process that could be used for future technological development.

This year, POSCO encouraged employees to produce even more successful results by increasing the reward of the top prize to 150 million KRW, which made the total cost of rewards a staggering 1.29 billion KRW.