▲POSCO ASSAN TST’s on-going volunteer activities televised live across the country on Turkish national TV. A local reporter is interviewing the employees volunteering at a local elementary school.

POSCO ASSAN TST is a cold-rolled stainless steel production subsidiary in Turkey with an annual production capacity of 200,000 tons, located in the city of Izmit 100km to the southeast of Istanbul. To contribute to the local communities in Turkey and build long-term mutual trust, POSCO is implementing the company’s ‘With POSCO vision’ through various measures: fostering local talents, creating jobs, supporting underprivileged communities, facilitating cultural exchange between Korea and Turkey as well as supporting Korean War veterans in Turkey.

Since 2016 in particular, POSCO designated the second Saturday of every month as the ‘POSCO ASSAN TST Volunteer Day,’ and employees have been volunteering for low-income families, orphans, and senior citizens living alone. Rather than sporadic financial support, POSCO employees are contributing their time and resources repairing the facilities of different communities.

Broadcasted on that day was POSCO ASSAN TST’s very first volunteer activity of the year –over 40 employees including the company CEO Don-Ho Ban spent the day repairing old classrooms of a local elementary school.

A regular volunteering activity is a rather unusual sight in Turkey, especially from a foreign-invested enterprise, which is why POSCO ASSAN TST’s on-going volunteering piqued TRT’s interest. The TRT news crew was at the site of POSCO’s volunteering and live-broadcasted the event during the main news hour.

What the TRT newscaster specifically highlighted was that the employees are willingly and consistently volunteering their free time even on holidays. One of the volunteers interviewed for the news said, “I would like to express my gratitude for being able to contribute. I am proud to be part of this company.”

POSCO Group is set to donate $500,000 as Indonesian tsunami relief fund.

On last December 22nd, the Anak Krakatau volcano eruption and landslides under the sea level in the Sunda Strait – located between Indonesian Java and Sumatra islands – triggered a tsunami along the coastline. To date, the disaster caused 426 deaths and displaced 40,000 people.

POSCO quickly jumped in to help alleviate the damages by donating a total of $500,000 to the Indonesian Red Cross. It includes $300,000 from POSCO, $100,000 from PT Krakatau POSCO (Joint Venture Company between Indonesia’s PT Krakatau Steel Tbk and POSCO Korea) and $50,000 from POSCO Daewoo and POSCO E & C.

Pandeglang and Anyar areas in Banten province are some of the worst-affected areas, located 40 to 120 km from the PT Krakatau POSCO office, where the company is helping dispatch emergency relief team to deliver aids to the victims.

This is not POSCO’s first contribution to the relief efforts in Indonesia. In August and October last year, the company donated $130,000 and $500,000 respectively to help the region recover from the aftermaths of the earthquakes. On September, POSCO also established ten housing units in the impoverished area in the vicinity of the PT Krakatau POSCO office.

Volunteer activities include helping to improve housing conditions for underprivileged neighborhoods, baking, painting murals, and mentoring the local youth. On May 30, POSCO CEO Ohjoon Kwon and over 30 employees will visit Myeongryundang of Sungkyunkwan Munmyo (a Confucian shrine) and help repair and replace the Changhoji (traditional Korean paper made from mulberry bark for doors and windows).

POSCO hosts the “’2017 POSCO Global Volunteer Week” from May 24-30. This photo shows POSCO CEO Ohjoon Kwon and other employees volunteering during last year’s Global Volunteer Week.

Volunteer activities will also take place in the various countries where POSCO Group branches are located (China, Japan, Thailand, Vietnam, Indonesia, Mexico and Poland). Volunteer activities are customized for local communities and range from improving and repairing the welfare facilities in slum areas to cleaning up the environment and setting up cultural activities for disabled children.

Not only does POSCO ask its employees to help strengthen the community through the Global Volunteer Week, but it also contributes to the POSCO 1% Sharing Foundation to assist those in need.

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High-Quality Steel Products Keep POSCO Competitive in China

In China, several factors have led to more difficult market conditions. Can you tell us about what it is that POSCO is doing to stay competitive in China? How do POSCO’s steel products compare to those from other companies?

Kim Huyn Ah: POSCO has done several things to remain competitive. First, we have focused our attention on creating high-quality World Premium Products. As you know, there is a lot of low-priced, low-quality steel, but our World Premium Products stand out because we are able to make them consistently and without defects. Secondly, POSCO has positioned itself near other key industries. For example, our machining centers in China are located near other large international car manufacturers like GM and Volkswagen. So, even when market conditions go south, there is always stable demand simply due to the geographic proximity.

Yuan Feng: In mid-2015, our production output of World Premium Products was around 30%. By 2016 that had increased to 49%, and as of January 2017, our total output consists of 55% World Premium Products. As Huyn Ah said, other companies can make similar products, but no one can do it at our speed and consistency. Our customers rely on that.

Wang De Hui: Because of the overcapacity of steel, things were difficult for a while, but they are getting better. We get our raw materials from HQ, and because our raw materials are better we can provide better products. And actually, the abundance of low price, low quality steel ended up creating more demand for our advanced, high-quality steel products.

We are committed to maintaining higher quality products. Each year we analyze the steel to make sure the raw materials and production processes are better, more advanced, and with fewer impurities. I know the difference between our materials and our competitors. What we get from Korea is just better.

Better Customer Service with Solution Marketing 2.0

In addition to producing high-quality steel, how does POSCO stand compared to other steel companies? What is it doing to keep customers satisfied?

Kim Huyn Ah explains the importance of POSCO’s high-quality products in China’s market

Kim Huyn Ah: At POSCO, when questions come up, or if a problem occurs, we do our best to find a solution as soon as possible. Through POSCO’s Solution Marketing 2.0, we provide our customers the tools they need to maximize convenience and efficiency in utilizing high-quality steel.  Solution Marketing 2.0 is practiced under three strategies: digital solution marketing based on advanced IT technology; innovative solution marketing that focuses on speed, value and quality; and tailored solutions that provide comprehensive support for each customer. This process helps our customers understand the balance between a product’s features, price, and long-term benefits.

Also, we work hard to provide products to clients on time and on schedule. It is one of the most basic parts of our job, but oftentimes one of the most difficult to control due to floods, typhoons, or other things that are out of our control. Customers demand more, so at POSCO CSPC we have made production systems management a priority so that we can deliver our steel products on time. Because of these improvements, we have been able to meet delivery times more effectively than other steel companies in the area.

Yuan Feng: Huyn Ah really touched on a lot of the important points for us, but I would like to add that POSCO now has an entire department dedicated to service. Now we are able to listen to customers more effectively and respond to their questions and feedback more quickly. We do our best to solve problems as quickly as possible.

Wang De Hui: The Chinese steel market has grown very quickly. Because POSCO is almost 50 years old, we have a better understanding of service and quality. That being said, our competitors in China are learning fast. We must continue to adapt and be competitive. Last year, POSCO set up a Solutions Marketing program to promote high-quality products and customized solutions. Our customers really appreciated that we had higher quality products and were willing to work with them for individualized solutions.

POSCO Fosters Employee Development

All of you are in Korea participating in POSCO’s Global Mobility Program (GMP) where you are able to collaborate with other POSCO employees from around the world while developing new skills at HQ. As part of the management team in China, how has POSCO helped you grow in your career?

Kim Huyn Ah: It is helpful for me to take part in the Global Mobility Program. Seeing HQ and how they work helps us understand the full system process better. Also, as a Korean, I am often in the middle between HQ and our local Chinese office. It can be difficult to understand communicate to both sides effectively. But POSCO has supported me in my career and this experience will help me have a better understanding of the work process in Korea.

Yuan Feng explains the significance of being able to get training at POSCO HQ. His work in maintenance is critical to maintaining smoothly running factories that deliver POSCO’s steel products on time and without defect.

Yuan Feng: I joined the Global Mobility Program because I wanted to learn more. My department is new; it was just formed last year so I want to see more about POSCO and how it works. I think the GMP gives me the opportunity to develop more as an employee, but also in other ways as well. For example, I can have the chance to work with people from other countries and learn about their cultures as well. When I first started, I had to work with some people from Indonesia. We both had a bit of trouble understanding each other, which is natural. However, after we learned about each other’s cultural backgrounds we could understand each other much better.

I will be in Korea for 6 months. During that time I want to create a new system for our Maintenance Department so that it can be more stable and strong. In addition, because it is a new department there needs to be a systematized program for development. We have done well since last year, but we have bigger goals and we want to do more.

Wang De Hui: This is an exciting opportunity for me. I want to improve my skills and do more with POSCO. Being a quality control specialist, I’m responsible for collecting data and measuring performance and customer choice. It is important for me to know how these things are done at HQ so we can improve our efforts in China.

POSCO is Tops in CSR in China

POSCO has won many awards around the world for its CSR work. In particular, it recently won one of the top awards for Corporate CSR work in China. Have you participated in any of POSCO’s CSR events? What effect do those activities have on the community?

Kim Huyn Ah: At POSCO CSPC we have a CSR department that organizes several activities. We have events to plant trees, visit nursing homes, and help out at homes for disabled children. My most memorable experience was when I visited a home for disabled children. When we visit, they greet us so warmly and show so much gratitude.

Wang De Hui has seen the impact of POSCO China’s CSR work

Yuan Feng: At our office, we participate in several CSR activities. We help out with environmental initiatives and with the local communities around the factory as well. We support 3-4 families regularly with supplies and help them with simple things like painting their houses. We sometimes go on trips with them. In the beginning, we would simply donate money, but after seeing the benefit to the communities, and for the staff as well, we are becoming more and more active with CSR activities.

Wang De Hui: At POSCO Qingdao, we organize an event every month. It is well attended by our staff as even our general manager and department managers go. I’m glad we do things like this and I enjoy participating. We mainly go to help out at public nursing homes and schools for the deaf. We also raise money to buy basic needs, such as food, clothes and home appliances. Activities like this have given POSCO a good reputation in the local communities, which is important.

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The event was sponsored by the CSR Research Center of the Chinese Academy of Social Science – China’s most authoritative CSR evaluation agency. They evaluate corporate social responsibility and social contribution activities, releasing a corporate public interest development index and a CSR development index each year.

In addition, on January 6, POSCO China picked up the Educational Public Service Medal from the Chinese Enterprise Development Institute, the largest public interest group in China. A total of 31 domestic and international companies were selected as winners including Panasonic, Intel, and LG. POSCO was given the award in recognition for its affiliates’ scholarship programs and contribution to the preservation of traditional cultures in China.

With news of these awards, POSCO remains more committed than ever to working with the communities near its plants and offices in China. POSCO China plans to be even more active with CSR activities in 2017.

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