On March 21, POSCO DAEWOO (President Youngsang Kim) celebrated the launch of its new name and new corporate identity (CI) at Songdo ConvensiA Convention Center in Incheon, along with more than 1,000 employees.

Prior to the change, the company had been known as Daewoo International, since being incorporated by POSCO Group in 2010.

Presidents from POSCO Group affiliates—including POSCO E&C, POSCO Energy and POSCO ICT— attended the ceremonies, along with POSCO CEO Ohjoon Kwon and Incheon Mayor Jeongbok Yoo. The national bobsleigh & skeleton team delivered congratulatory messages on video for POSCO DAEWOO’s historic first step. The event kicked off with the unveiling of the new corporate identity, followed by the presentation of the company flag, badges and employee cards.

On March 21, POSCO DAEWOO celebrated its new company name and corporate identity, and resolved to devote all its strength to enhancing synergy with POSCO Group’s overseas businesses. Youngsang Kim, President of POSCO DAEWOO, waved the new company flag presented by POSCO CEO Ohjoon Kwon.

POSCO DAEWOO vows to enhance the POSCO Group’s value

The new CI of POSCO DAEWOO (pictured on the left) displays the company’s determination to lead in the globalization of POSCO Group by combining the POSCO brand, which symbolizes trust and innovation, with the Daewoo brand, which stands for the idea of “creative challenge.”

“POSCO DAEWOO’s new start is significant in that the unique advantages that POSCO and POSCO DAEWOO have obtained over the last half-century will be combined and embedded into the employees’ DNA,” said CEO Kwon in his congratulatory address. “I look forward to seeing POSCO DAEWOO take the initiative in making POSCO Group proud by enhancing the synergy of the company’s global businesses as a key affiliate of the group.”

“The foundation of POSCO DAEWOO is an important opportunity to solidify a sense of unity for POSCO Group, as well as to strive to create and lead the synergy of the group’s overseas businesses,” said President Young-sang Kim. “As employees and executives, let’s all equip ourselves with POSCO DAEWOO’s creative and challenging spirit, and serve as the main agents of the forward base that will develop the future value of the POSCO Group throughout the world.”

POSCO DAEWOO was founded as Daewoo Industry in 1967, then renamed as Daewoo International in 2000, specializing in international trade, project organizing, and resource development. It was incorporated into POSCO Group in 2010.

The change of name to POSCO DAEWOO will help establish it as a leading global trading company. Moreover, the company plans to actively break into new global markets as a comprehensive trading company that connects value chains in all business areas based on business know-how and abundant overseas networks that have been cultivated over a long period of time.

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

Daewoo International President Young-sang Kim and Gecomex President Aurelio Mollineda signed an MOU in Cuba to cooperate on project implementation and trading.

Gecomex is Cuba’s largest state-owned trading company, and it handles about one third of Cuba’s total imports. Both parties will work together on a financial benefits program for imports and exports between the two countries, and for major on-going projects in Cuba. With the agreement, Daewoo International expects to stay ahead in the Cuban market and secure channels to sell high quality Korean products. It also expects to see tangible results from its entry into the Cuban infrastructure market on top of trading of steel, components, machinery and chemicals.

An official from Daewoo International said, “After resuming diplomatic relations with the U.S., Cuba has become an appealing country for Korean companies. With this agreement, we will export more to Cuba and push for infrastructure projects in telecommunications, electricity and transportation.”

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

Established in 1947, Maruichi Steel Tube Ltd. produces steel tubes for construction, civil engineering and automobiles, and has been a partner with POSCO for 35 years, since 1980. Purchasing only 3,500 tons of POSCO steel products for their first trade agreement, Maruichi Steel Tube Ltd. now purchases over 150,000 tons of hot rolling products from POSCO per year.

Oh In-hwan, Head of Steel Business Division expressed his gratitude by saying, “It is a meaningful accomplishment for both companies to achieve accumulated trade of 8 million tons while overcoming difficulties together for the past 35 years. POSCO could not have grown to this extent without the help of Maruichi Steel Tube Ltd., our customer as well as our partner. I hope both companies will maintain a close partnership based on trust over the coming years.”

Maruichi Steel Tube Ltd. Chairman Suzuki replied, “With POSCO’s support to constantly supply high quality steel products, we also grew as a competitive steel tube company, securing manufacturing and sales bases throughout Japan. We look forward to POSCO’s continued support in the future.”

During the ceremony, executives of both companies pledged to overcome the current challenges of the steel industry by strengthening cooperative relationship in the future and jointly responding to increasing demands for steel products for 2020 Tokyo Olympics.

From left: Kim Young-sang, CEO of Daewoo International, Maruichi Steel Tube Ltd. Chairman Suzuki, Oh In-hwan, Head of Steel Business Division and Maruichi Steel Tube Ltd. Vice President Horikawa

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

Hosted by the Mary state government of Turkmenistan, the Mary Filtration Plant construction project is set to demolish the existing filtration plant and construct a new filtration plant of 120,000 m3 and a water intake station of 240,000 m3. For construction of the new filtration plant, POSCO Engineering will use the EPCm (Engineering, Procurement & Construction management) method which handles processes from drawing, to procurement and construction as one package. Daewoo International will add support by supplying materials and equipment through its global networks.

With this partnership, POSCO Engineering has established a foothold for entering into the global water environment industry, which is expected to be valued at 865 billion USD (about 950 trillion KRW) by 2025. This was the result of POSCO’s continuous efforts to solidify its position as a global EPC company through constant securement of contracts in chemical, infra and industrial plant areas, as well as to accumulate its business know-how and technical capabilities in the local water environment area, such as water supply and drainage system and water treatment. Park Jung-hwan, CEO of POSCO Engineering said, “This agreement is especially meaningful since it’s our first business in Turkmenistan where rapid industrial structure acceleration is in process based on its abundant natural resources. This agreement will serve as a foundation to obtain additional contracts for constructing filtration plant, wastewater disposal and desalination system, and to enter into CIS countries.”

Ovezguly, CEO of Chakmak Dashy, Park Jung-hwan, CEO of POSCO Engineering and Yoo Duk-sang, Vice President of Daewoo International

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

Per the agreement, POSCO will supply over 300,000 tons of black plates to the OCC over the next three years, starting in November.

The OCC was established in 1993 in Ohio, USA as a joint venture company of TCC Steel (formally Dongyang Tinplate Corp. and U.S. steelmakers. With an annual tinplate (TP) production capacity of 300,000 tons, POSCO has been supplying black plate (BP) materials required for tinplating to the OCC since 2009.

The POSCO-OCC MOU signing ceremony was held at POSCO Center and was attended by James A. Tennant (CEO of OCC), Daeryong Ha (Senior Vice President of POSCO), Cheolsoon Nam (Head of Steel Division of Daewoo International) and Seokhee Cho (CEO of TCC Steel).

James A. Tennant, CEO of OCC said, “We couldn’t have been able to achieve the current growth without POSCO’s stable supply of BP materials. I hope that both parties can continue a stable business in the future through close cooperation and co-responding to trade issues of US.”

Interview with Editor of The Birth of “Bloom in Daewoo”- the First Collected Works of Employees

Everybody is familiar with books, but what about producing a book? Right, this article is to share “Fleet of Time” collected works edited, published and produced by Daewoo Shanghai.

This book consists of over 40 essays about company events, travels, and social issues that were written by employees from 2011 to 2014. It took about two weeks to complete and left a conclusion that it is “an aggravating process with a happy ending”. Therefore, POSCO-China has interviewed Nana Ma, one of the initiators of the publication, and shared her spirit and ingenuity embodied in the book with us.

Q：What kind of book is it?

A：This book is a record of all the articles of Daewoo Shanghai employees who have been contributing to “E-Spirit” journals since 2011. The book also includes some fabulous pictures that were submitted in travel photography contests organized by the company in the past two years.

Q：Why was the book edited internally instead of finding an outsourcer?

A：When the personnel manager told me that the general manager suggested internally editing the book, I considered it as a compulsory task so I was feeling only awkward, in Chinese, “Jiong”. There are many professional agents that specialize in publishing and printing books in the market. Everything will be taken good care of as long as our requirement is clear. So I started searching for such agents. However, the problem is that 100 prints are not enough for mass production whereas the overall expense is much more than that of printing 1,000 copies. Taking into account the cost of designing the page layout and back and forth communication with the agent for modification requests, this would be a time consuming, effort demanding and costly task. Eventually, we decided to select content, compile and proofread on our own and delegate only printing task to the agent.

Q：Did you come across any difficulty during the work? How did you overcome it?

A：However, as I think further, I wondered, ‘how can it be possible?’. I am only a little office clerk and have not ever worked professionally in publishing before. How can I know about page and layout design? Despite the anxious feeling, I had to carry on the task! Working as a deputy, witnessing our personnel manager implementing the project with a calm and organized manner. With ease and a step-by-step process from gathering materials, I felt more confident af if I have taken a sedative pill and started assisting my personnel manager on the project.

(The lady on the right is Nana Ma.)

Q：And what has attracted your continued attention during the editing process?

A：We sorted out all the articles in “E-Spirit” journals and image options from travel photography contests of each year. As a next step, we designed page layouts, unified line spacings, printed out pages, made a review, and manually adjusted the image formats in each article. Then, we classified into sections based on topics, created the index, designed the cover page, thought about titles together with colleagues, proofread the content and made modification page by page. New Year messages were appended at the end of the book, with collection of our pictures, wishes and prospects for the upcoming 2015. Our two weeks battle is summarized into only a few sentences. After receiving the final prints, seeing everybody like it, I felt so proud as if I am a child receiving compliments by others. My final impression: an annoying process with a happy ending.

This content has been created by Meng Jiaxi from POSCO-China.

On behalf of POSCO, I am delighted to be able to welcome the New Year with Daewoo International, POSCO E&C, POSCO Energy, POSCO CHEMTECH, POSCO ICT, as well as all the overseas staff from around the world, including China, Japan, Indonesia, Vietnam, India, and Mexico.  I wish you all a very Happy New Year! My POSCO Family!

My POSCO Family!

Last year, “MV POSCO” risked capsizing under torrential trading conditions, with the decline in profitability and stock price, the downgrade in our credit rating, and the sluggish performance of several investment projects. But, 2014 also marked a momentous year in which we embarked on our ambitious journey to become “POSCO the Great”.

In order to achieve this, we have been implementing an all-out transformation. We have made innovation an integral part of our operations by focusing on four strategic agendas: the enhancement of core competitiveness in steel, a thorough review and critical selection of new growth businesses, dramatic improvements in our financial structure, and reforms to our management infrastructure.

As we commence the New Year, I would like to express my utmost gratitude to all members of the POSCO family for supporting the company’s innovation agenda and implementing the reforms.

Through your tireless efforts and contributions, we have been able to complete the first phase of our midterm management objectives without any major issues.

I would like to take this opportunity to especially thank the employees at Indonesia Krakatau-POSCO, POSCO, and Daewoo International for their immense contribution to reaching this target.

Dear my POSCO Family!

Looking back on 2014, I would like to emphasize not only our achievement in reaching our management goals financially and quantitatively, but also the way we demonstrated the operational versatility to improvise our strategic direction, adapt to the constantly shifting industry environment, and collectively overcome the obstacles that stood before us.

As I look back, I am fearless about the challenges that lay ahead for our organization as I know that together we stand strong, determined and ready to respond with conviction

My members of the POSCO Family!

As we stand at the start of 2015, the business environment offers few signs of improvement.

Although the global economy is forecast to improve slightly with the recovery in the United States, any significant breakthrough is likely to be hindered by stagnant domestic demand, the slowdown in China, and the relative appreciation of the Won against the Yen.

Global steel demand is at a standstill, with declining prices resulting in a tighter squeeze in margins. For our subsidiaries, competition and business conditions are expected to be onerous.

I cannot reiterate enough how 2015 ought to be the Year of Perseverance to realize increased profitability and improved competitiveness.The critical phrase that I would like you to focus on as we usher in the New Year is “financial result generation.”

As we begin the second year of the Three-year Midterm Plan, it is vitally important that we demonstrate our executive ability for the key business agenda and move closer to our goal of genuinely actualizing favorable financial results.

My adored POSCO Family!

Let me share with you the five factors that will help guide us in the progressive direction of accomplishing the desired midterm financial results.

First, we must strengthen our revenue structure by providing solutions.

We have accelerated our premium product strategy in recent years by integrating technology, sales and solution marketing. This strategy was identified after due consideration as being the best way to ensure our longevity in this fiercely competitive business environment.

In the New Year, we must demonstrate progressive solution marketing by focusing on the development of World Premium products. We must expand the infrastructure of our global solutions to promote effective commercial support by TSC and other members of our solutions network. In the case of our family companies that engage predominantly in contract-based businesses, we have to mobilize our group’s capabilities and reinforce our solutions business in order to secure first-mover advantage by proposing and developing customized client-centric projects.

The second guiding factor is the acceleration of the ongoing organizational restructuring and the stabilization of our balance sheet.

Last year, we established the master plan for our group-wide restructuring and moved forward with the overhaul of our non-core operations. However, there is still a long way to go. This year, we plan to leave no stone unturned on our search to swiftly reorganize and fundamentally reinvigorate operations that are unprofitable. We must also internally minimize waste by reducing our inventory and working capital while still effectively managing our investments and any other assets that we may have neglected in the past.

Third, POSCO will advocate the proliferation and establishment of a project-based working approach.

This project-based working method is a tactic designed to explore potential projects that can deliver exceptional results and increased profitability with the short-term support of operational resources. Most importantly, the project-based system allows us to achieve quantitative financial performance. Projects that contribute to the realization of financial results will be recognized and adequately compensated. By focusing on discovering lucrative projects and producing tangible results in 2015, I look forward to the ability of project-based working to institute itself as a powerful tool in generating profits and creating a win-win scenario for both company and employees.

The fourth guiding factor is the need to realize the commercialization of our potential growth businesses.  

When I became CEO last March, I suggested that our sustainable future as a business lay in fostering a thorough review and critical selection of new growth businesses. As part of this review and selection of new growth businesses, we must incorporate our competitive technological advantages.  We must call for the advancement of lithium extraction technology in Argentina and nickel refining technology in Pohang to reach the commercialization phase. In addition to improving the performance of our fuel cell systems used in buildings for commercialization, we also need to stabilize our Gwangyang SNG plant’s processing operations in its stages following construction.

The fifth guiding factor is the need to expedite the fortification and augmentation of our group’s operational efficiencies and synergies.

The previous year saw the inauguration of the Value Management Department, which serves as the group’s corporate center, and the selection of key performance indicators for POSCO group’s reinforced goals centered on EVA (economic value-added). This year should be defined by the collaboration we achieve between our family companies specializing in their respective industries for greater operating efficiency, value creation, and synergy formation. We will also continue to expand the coordination and cooperation of overseas businesses by operating several regional headquarters.

My cherished POSCO Family!

I would like to respectfully insist that you maintain your alignment to the group’s strategic direction mentioned above in order that we accomplish the group’s management objectives.  I cannot stress enough that now is the time to propel our operations at full tilt.

Today, “MV POSCO” is no longer fit for purpose: the way of the lone battleship is no more. The role of our subsidiaries and overseas enterprises has become critical, as sales from these two groups account for over half of POSCO Group’s total revenue. These remote vessels of POSCO must assemble as an impregnable armada in order to realize our group-wide vision.  I urge you to give your full commitment to fulfilling this daunting task and exhibit superior competitiveness to reinvigorate our core competencies. That is how we will achieve our midterm goals and establish the foundation for the firm’s long-term prosperity.

My revered POSCO Family! Where do we stand and in which direction are we heading?

It is no exaggeration to state that “MV POSCO” has weathered one of the most calamitous storms since its foundation.

However, more important than the ability to endure is the capability to emerge triumphant. That is true victory.Despite the ominous predicament that stands in our way, let us unite and prevail undefeated to affirm our dignity and pride as part of the “POSCO Identity”.

I wish you all a victorious year in 2015. Once again, allow me to express my unconditional affection and appreciation for my admirable POSCO Family members.

On the first morning of 2015
CEO Ohjoon Kwon

[box] To greet the new year, CEO Ohjoon Kwon has recorded a special message. Please visit the website and take a look [/box]

1. CEO Ohjoon Kwon 

POSCO’s 8th CEO Ohjoon Kwon was officially inaugurated in March. CEO Kwon has shown a strong will to actualize POSCO’s vision, ‘POSCO the Great’ by enhancing steel competitiveness based on distinctive technological skills, wise decisions and concentration.

In pursuit of the group’s vision, CEO Kwon has been actively engaging in various activities. Visiting numerous global sites, he encouraged and applauded the accomplishments of all employees. Furthermore, as a member of the World Steel Association’s board of directors and an official member of the execution committee, CEO Kwon exchanged perspectives on the steel industry with leaders of fellow global steel companies. Through diverse opportunities of meetings, he has shown engaged and flexible communication with employees as well. Moreover, CEO Kwon visited client companies such as Hyundai Heavy Industries to inspect current status of solution marketing and announced POSCO’s new business strategy at an investor relations meeting for stakeholders and investors. Ever since his inauguration, CEO Kwon has been passionately leading toward ‘POSCO the Great’ by directly managing major topics of clients and investors.

More details are available here at Inauguration of Ohjoon Kwon and Vision for ‘POSCO the Great’ and POSCO the Great! CEO Ohjoon Kwon Speaks about POSCO’s Vision & Direction

2. Creative Economy
POSCO’s mutual growth activities for 2014 Creative Economy evolved in many different forms. Fostering venture business through ‘Idea Market Place’, POSCO took the lead of the creative economy in Korea. Especially, POSCO Partner’s Day event provided a platform for companies to share cases of mutual developments. Also at the event, POSCO announced the mutual growth vision, ‘Win-win for the Great’, inspired by ‘POSCO the Great’, to promote both POSCO group and SMBs to expand further in the future. As a result of POSCO’s contribution to creative economy, President Park Geun-hye visited No.3 FINEX plant and Pohang Creative Economy Innovation Center to encourage the notable performance. Officially opening in 2015, the Creative Economy Innovation Center is expected to promote POSCO’s creative economy activities and add more to revitalization movement for creative economy.

3. Solution Marketing

The key point of solution marketing lies in clients. By combining technology and marketing, POSCO has strengthened its competency by offering new and distinctive values to POSCO’s clients. With Steel Solution Center’s operation, POSCO provided preemptive actions to the clients and focused on the sales of strategic products such as marine and energy steel material. Moreover, the launch of Technical Service Centers has created opportunities to provide various solutions to clients more closely. Furthermore, other examples of successful solution marketing include POSMAC, an ultra-corrosion resistant alloyed steel plate, high-manganese steel LNG storage tank and a concept car ‘EOLAB’ which received spotlight at 2014 Paris Motor Show. As a result to many efforts, POSCO’s Global EVI Forum in October, was lauded as POSCO’s distinctive client-oriented marketing festival. POSCO’s solution marketing to enhance client value will continue in 2015 as well.

More details are available here at 2014 POSCO Global EVI Forum.

4. POSTIM
POSCO’s POSTIM is an innovative model developed and applied to achieve the corporate vision of `POSCO the Great’. POSTIM, which stands for POSCO Total Innovation Methodology, is designed to improve the previous innovation system by integrating employees, affiliates, tasks and innovation. POSTIM consists of PWS, QSS+, and SWP activities. Each activity act as an engine for implementation to practice the management ideologies. In fact, on the 4th of December, the Innovation POSCO Festival 2014 took place for the purpose of looking back on the efforts and traces of innovation throughout the year.

More details are available here at POSTIM.

5. Financial Structure Reformation
The financial structure reformation is one of the innovation agendas suggested by CEO Kwon. In April, POSCO successfully won project financing for Australia’s Roy Hill Mine project. By this means, POSCO, holding 12.5% of the mine’s stake, will be provided with at least 11 million tons of high-quality iron ore every year for the following 27 years. Moreover, POSCO promoted to sell its LNG Terminal, Posfine and POSCO-Uruguay while signing a MOU with SeAH Group and sold specialty steel affiliate to SeAH Besteel. In addition, POSCO has secured financial liquidity by selling Vietnam’s Diamond Plaza (POSCO E&C) and Masan city’s Daewoo Department Store (Daewoo International). As shown, this year was a significant time period for POSCO, considering that POSCO pursues to secure its steel business competency by achieving financial solvency.

6. Working Process

Experiencing a series of innovation throughout the year, POSCO has stepped forward in working method as well.

[Applying ‘Project-based Working Process’]
The ‘Project-based Working Process’ identifies projects that will help to improve profitability and accomplish qualitative goals. Also, this work method puts heavy emphasis on creating outcomes.

[Specialist and PCP-oriented Project in Progress]
Specialists and PCPs are promoting projects by drawing issues from their vast array of knowledge and experiences.

[IP Project Counsel]
Last July, the IP Project Counsels were held simultaneously in Seoul, Pohang and Gwangyang to share the results for the first half and plans until the yearend. At the event, CEO Kwon monitored projects in process and provided his ideas to project managers.

[IP Project Special Reward System]
POSCO established the ‘IP project special reward system’ for employees to be encouraged to challenge themselves to take on new projects and concentrate on excellent performance. This system gives substantial rewards to teams or individuals with outstanding results.

More details are available here at Project-based Working Process and IP Project.

7. POSCO the Great!

POSCO has been named the world’s most competitive steelmaker for the 7th consecutive time during the past five years by World Steel Dynamics (WSD). Moreover, POSCO was selected as a global sustainable leading company in the SAM-Dow Jones Sustainability Indices (SAM-DJSI) and was named as the ‘Most Respected Companies in Korea’ by the Korean Management Association Consultants (KMAC). Also, in July, POSCO was named as the 177th world’s largest corporations by the Fortune’s global 500.We hope POSCO will continue to create further accomplishments in 2015!

More details are available here at World’s Most Competitive Steelmaker and Most Respected Companies in Korea.

8. Future Competency

In 2014, POSCO focused on preparations to attain future competency. Three FINEX plants have started operation since January and POSCO-Thailand’s CGL has started its construction in August. Also, POSCO has been building a large demo plant in South America as a prelude to the entry in the global market for world’s first lithium extraction technology, developed by POSCO. In November, Gwangyang Steelworks’ hot rolling plant No.4 was completed. Now indeed, high-quality steel production is capable purely with POSCO Family’s technical ability. This production system supplies 3.3 million tons per year. Lastly, POSCO-Krakatau which has initiated its iron-making in January, also appears to be making pleasant results. 2014 was surely a year of productive and diverse constructions. We expect for more remarkable activities in 2015!

More details are available here at POSCO’s Global Competency.

9. Safety
This year, safety has been a very important keyword to everyone in Korea. Through safety exercises like POSCO center fire drills, Pohang and Gwangyang group fire trainings, POSCO Family Safety and Disaster Prevention Resolution Conference, POSCO has been engaging in preemptive activities in safety to stress the importance. Also, POSCO has enhanced inspection in Seoul, Pohang and Gwangyang for sites that are prone to fatal accidents while conducting customized emergency response trainings to reduce risk factors beforehand. In addition, POSCO has created curriculum for safety professionals and conducted cross audits for each steelworks.

10. Pride
Establishing the world-class training process for technical professionals, POSCO has been striving to maintain as a company where employees hold pride in their hearts. In fact, through ‘Great Work Place’ activities, POSCO has been providing a working environment of flexible commuting time and improved work engagement. Also, POSCO has prepared a 5-level job competency level system to foster technical workforce while also selecting employees with professional knowledge and colleagues’ respects as ‘POSCO Master Craftsmen’ and providing exceptional rewards to them. Lastly, through ‘IP Concert’, which was held 19 times in Pohang, Gwangyang and Seoul, employees and executives shared new business philosophy and reinforced the pride in POSCO.

More details are available here at ‘The Great Company to Work At’.

11. POSCO Family News

[Daewoo International]
The hottest issue of 2014 Daewoo International would be about Myanmar Gas field. Starting in June 2013, the field has been enlarging supply ever since its first production which was approximately 500 million cubic feet. It now has become the main source of profits at Daewoo International.

[POSCO ICT]
In the smart energy sector, 2014 was a fruitful year for POSCO ICT. For instance, energy storage system ESS and energy efficiency system for factories and buildings have achieved outstanding outcomes. Including Building Energy Management System (BEMS), which is currently applied at POSCO ICT Pangyo office and Portable Emissions Measurement System (PEMS) at Gwangyang Steelworks’ oxygen plants, POSCO ICT’s various energy-related business will continue to advance in 2015.

[POSCO Energy]
‘Beyond Energy, Better Life’! Acquired by POSCO Energy, TONGYANG Power has marked its new start with the new name of POS Power. Thus, it is gaining many people’s expectations as they expand abroad into private development business. Furthermore, POSCO Energy has secured a license for 450MW power coal cogeneration plant which is the biggest in size in Mongolia. As a result, POSCO is now the largest shareholder of the fifth power plant business in Mongolia.

[POSCO E&C]
The Northeast Asia Trade Tower is a landmark in Songdo City and the tallest building existing in Korea. 305m in height and 68 floors in total, the building was under construction for approximately eight years. Besides its office and accommodation, the building features many additional facilities. In fact, Daewoo International will soon be joining the office space. Please look forward for POSCO E&C’s activities to become one of the top 10 global construction companies in 2020!

More details are available here at Northeast Asia Trade Tower.

Today, we took a look back on the keywords of 2014 in POSCO. Among the keywords above, we wonder which word stays in your memory the most. As a closure to 2014, we would like to thank you and all employees who trusted POSCO group for the sincere support!

POSCO (NYSE: , PKX) held IR conference call on October 23^rd, to announce its 3Q performance results.

On a consolidated basis, the company recorded 16,270 billion KRW (About 14.4 billion USD) in revenue and 879 billion KRW in operating profit. Operating profit margin went up to 5.4%, 0.4%pt increase from 2Q, due to stabilization of global steel business and increased profit in the energy sector.

Especially, Indonesian integrated mi started operation from January 2014, showed utilization rate of 82% and 24% increase in sales volume from the 2Q, which resulted in 3Q operating profit. Also, POSCO India’s electrical steel mill turned the profit through expanding its sales base. With support from the stabilized performance of overseas steel mills, steel sector profitability recorded 5.3%.

Meanwhile, Daewoo International’s Myanmar gas field showed 20% of an increase in operating profit from 2Q, as production expanded as scheduled. Along with the increase in production volume, the operating profit of POSCO Energy has also increased by 138% from 2Q.

POSCO stand-alone revenue reached 7,290 billion KRW (7.2901 trillion USD) and operating profit recorded 635 billion KRW. Due to increased export to overseas production centers, POSCO’s product sales and operating profit have enhanced. As a result, POSCO has recorded operating profit of 8.7%, which is 1.1%pt increase from 2Q.

POSCO is also expanding its automotive steel products sale, by using global production sites and sales network. As POSCO continues to expand sales to global automakers towards target regions, including the U.S. and China, through 5 automotive steel product mills, and 47 coil centers, POSCO expects to reach 8.2 million ton in total sales amount of automotive steel in 2014.

POSCO’s client-oriented solution marketing activities have contributed to the increase in a high-value steel product sales. Adding to the development of high-strength PosM Steel, super austenitic stainless steel products and magnesium panel, the new automotive lightweight material, the sales of the solution marketing products have increased up to 407 thousand tons, which is 59% increase from 2Q.

Although the steel demand in 4Q is expected to increase slightly, due to seasonality and the slow market conditions of the automobile industry, POSCO plans to steadily expand the client-oriented solution marketing activities.

Moreover, POSCO has continued to reduce carbon emissions through activities, such as building off-gas power plants. Furthermore, POSCO will continue its social contribution to reducing greenhouse gases by development and sales of high strength steel for a lighter-weight automobile.

Revolutionary Features of Korea’s New Landmark, Northeast Asia Trade Tower

#1. 3-Dimensional Exterior Design Minimizes the Effect of Wind Load

POSCO Engineering & Construction, the construction arm of Korea’s top steelmaker POSCO, applied its most innovative and cutting-edge technology in the construction of NEAT Tower, the tallest building in Korea. To minimize the effect of wind load on the building, the tower was constructed under a 3-dimensional exterior design which features a trapezoid at the base which gradually transforms into a triangle at the top.

#2. Seismic Force Resisting System Utilizing Belt Truss and Outriggers

NEATT’ s main frame system consists of 27 perimeter columns, six corner mega columns, a core wall, and an outrigger/belt truss, all of which are systemically integrated. The core wall takes about 65% of the total gravity load and 70% of the total overturning moment due to wind load. The outrigger systems are installed on the 34^th and 65^th floors of NEATT and the structural design was performed in such a way that the axial load developed in columns due to the outrigger’s share of the overturning moment could also be resisted safely. The outrigger and belt system takes 30% of the overturning moment.

The core walls and columns of NEATT, an SRC structural building, were constructed with 12,841 tons of POSCO’s globally renowned high-strength reinforced concrete and SD40 reinforcing bars. The corner mega column was, for the first time in the construction of skyscrapers in Korea, built with 7,870 tons of SMC570TMC steel. The glass curtain wall enveloping the exterior was installed using low-emissivity glass. Low-emissivity (low-E) coatings are microscopically thin metal layers that are deposited on a window surface to help keep heat on the same side of the glass from which it originated. Glass with Low-E coatings reflect infrared light while allowing visible light, keeping the movement between interior and exterior heat to a minimum.

* Technical specifications of the Northeast Asia Trade Tower referenced from “NEATT Design of Structural System,” Dong Yang Structural Engineers Co., 2014.

#3. High Level Security and Anti-Disaster Measures

As the landmark building of Korea, Northeast Asia Trade Tower boasts high level security and anti-disaster measures. For example, it deployed global positioning system (GPS) sensors to help ensure the real-time measurement of vibration, displacement or deformation in the building caused by external factors, making it possible to preemptively identify any issues that could compromise the safety or structural integrity of the building. Additionally, the Seismic Force Resisting System can withstand magnitude 7-8 earthquakes.

In addition, the anti-disaster control center located on the first basement floor provides the ability to centrally monitor the power supply, lighting, CCTV system, access control and other utility services. The 30^th and 60^th floors each have a shelter that can accommodate up to 4,000 occupants safely and promptly in the event of an emergency, such as a fire. The building has 29 elevators operating at a speed of 420 meters per minute and capable of carrying users from the ground floor to the observatory on the 65^th floor within one minute.

< The anti-disaster control center located on the first basement floor provides the ability to centrally monitor the power supply, lighting, CCTV system, access control and other utility services. >

Going Green: A Striking Example of Sustainable Design

NEATT serves as a model of sustainable design strategies, carefully balancing energy conservation, increased indoor environmental quality, and occupant comfort. With a range of passive design strategies such as daylighting, natural ventilation and energy-efficient HVAC systems, the tower targets to achieve LEED^® Silver certification.

Like other buildings in New Songdo City, NEATT purchases district hot water from a new, highly efficient cogeneration facility located nearby. Hot water, used for heating and cooling via absorption chillers, is generated from waste heat recovered during the process of producing electricity. The building is estimated to reduce source-energy CO2 emissions by 6,000 tons per year when compared to a “standard” code-compliant office tower with on-site electric chillers and a natural-gas boiler plant.

Furthermore, the paint, carpets and wallpaper used in the construction of the building’s interior were of eco-friendly, non-toxic material in order to prevent the occurrence of Sick Building Syndrome.

* NEATT sustainability design features referenced from articles by ARUP and Built Expressions

<A Night View of the NEAT Tower and Songdo International Business District, Incheon>

The Northeast Asia Trade Tower is expected to boost the regional economy along with an increase in floating population, markets, employment and visitors from overseas once companies move into the building. Moreover, it appears to give momentum to draw more businesses to Songdo International Business District since clients of Daewoo International and other companies engaged in the related fields are expected to move into the building. We hope that NEAT tower will soon become Korea’s most well-known landmark in the days to come!