POSCO hosts 50th global technology convention ‘World Steel Association Technology Committee (TECO)

TECO is a global convention in which global steel companies share their current status of technology development and discuss the current issues that the steel industry is facing. POSCO hosted the 50th TECO for a second time following its first hosting of TECO back in 2010, to celebrate its 50th anniversary this year.

At this convention, more than 60 experts from steel and related industries such as ArcelorMittal, NSSMC, Tata Steel and Voestalpine and also Secretary-General of the World Steel Association joined to shine the conventions. This convention held in Gyeongju, South Korea from April 23rd to April 26th.

Since sustainability has become main global issue, the main focus of the convention was carbon dioxide emissions and energy. The participants in the convention expressed their own perspectives related to the development of iron and steel manufacturing, rolling process technology and development of innovative products and digitalization that lead positive impacts on environment.

Wonderful opportunity to spread POSCO’s world premium technology

POSCO’s own technology that may shine in the convention is ‘high-manganese product and manufacturing technology that is invented first in the world. This unique technology was one of the driving forces of POSCO become world leading company.

Additionally, participants had a great opportunity to experience Pohang Steel Works, the FINEX plant, smart factory and rolling system and then visit POSTECH to see world’s 3rd 4G synchrotron accelerator.

* 4G synchrotron accelerator: ‘Ultra-high-performance gigantic microscope’ that observes the microscopic structures and reaction of materials using synchrotron radiation when accelerating electrons at the speed of light.

The World Steel Association, founded in 1967, is the most authoritative organization in the steel industry, which promotes the understanding and interests of the steel industry. Currently, as many as 170 steel companies, related associations and laboratories around the world are listed as members. The World Steel Association and the Technology Committee shares the technologies developed by individual steel companies in every year to propose joint research on steel technology and encouragement of cooperation.

The first CEO Succession held successfully on April 23rd discussing the future and rightful candidates

Discussion for future POSCO and rightful candidates

The five outside directors, including Joo-hyeon Kim, chairman of the Board of Directors, Byeong-won Park, chairman of the director recommendation committee and the steering committee, Moon-gi Jeong, chairman of the auditing committee, Myeong-woo Lee, chairman of the evaluation and compensation committee, and Shin-bae Kim, chairman of the financial and inside trading committee and Ohjoon Kwon, CEO of the POSCO attended at the Council meeting.

CEO Ohjoon Kwon, not to participate in the Succession Council for transparency.

Based on regulation, the current CEO is considered as an ex-officio member of the CEO Succession Council. However, as soon as the Council meeting started, CEO Kwon has announced that he would not participate in the Council meeting for ensuring fairness and objectivity for the procedure of candidate identification.

Various candidates will be considered from in and outside

According to the outside directors, they defined the competent CEO candidates as the one who can show ‘Innovative leadership that can lead the next 100 years of POSCO Group’. More specifically, this means that they would carefully recommend the candidates who have global management aptitude to respond to the changes in the global economy, the innovative capabilities to continuously implement the development and changes of the group, and a high level of understanding of and competency in the steel, infrastructure and new- growth industries.

As for the election method for CEO candidates, insiders who have been fostered through the internal core talent development system will be recommended. However, shareholders such as the National Pension Service and institutional investors, through the labor-management council and Association of POSCO’s former executives will provide recommendation for the outsiders. Also, POSCO opens for global CEO candidates recommended by external search firms.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

Besides utility managed solar farms, solar developers are targeting other open spaces, such as auto parking lots, for large-scale energy savings (Source: Phys.org)

The surge in these installations is prompting a parallel upswing in solar infrastructure, which is seeing its own technology advances as a result of high demand and the need for greater cost efficiencies. While sturdy racking is important to protect against the ravages of nature, one of the main requirements for large solar farms — and any larger installation — is solar tracking equipment.

Solar tracking offers grid operators the opportunity to squeeze efficiency from sunlight at all hours of the day. While fixed-panel arrays are highly efficient for general-purpose energy harvesting, single-axis solar tracking can increase a solar farm’s annual output by roughly 30 percent. Dual axis trackers can add 10-20 percent beyond that. For example, air mass tables for solar panels show that a panel mounted on a tracker can harness as much as 60% of solar intensity in the late afternoon at an angle of 15 degrees, 50% at 10 degrees, and capture 25% at a mere five degrees. In large installations these gains can mean the ability to respond with enough power to satisfy peak demand.

Solar tracking systems explained

A solar tracking system is used for a variety of applications. Depending on the applications, the mounting systems will differ somewhat. Typically solar trackers hold single or multiple standard flat panels, arranged in rows and funneling power to an energy storage site or directly to a substation.

Parabolic mirrors can focus sunlight onto solar collectors. (Source: EU Solaris)

However, solar trackers are critical for large-scale solar installations using concentrated solar power (CSP). These trackers hold mounted mirrors that reflect sunlight to a central collector tower containing hot liquid or gas. They are also a key element in concentrator photovoltaic (CPV) installations that use parabolic mirrors or lenses to focus sunlight (and even ambient light from the sky) into solar collectors that are part of each unit. These panels and mirrors require precise angles to enable optimized concentration of the light onto a fixed-location tower, into Fresnel lenses, or into a solar thermal collector. The tracking system may be centralized, where a single motor moves many rows of panels at once, or a distributed system, where an individual motor moves one row or table of panels.

Horizontal single axis trackers (pictured above) are better suited for lower latitudes. (Source: Energia Solar)

Solar tracking devices can be classified by the number of axes around which they rotate and by their orientation. Horizontal single axis trackers (HSATs) are horizontal to the ground and mounted on rotating tubes supported by pylons or frames. Horizontal single axis trackers with tilted modules (HTSATs) are similar but installed at an angle, for higher latitudes, but rotate the same way. Vertical single axis tracker (VSAT) panels, also for higher latitudes, rotate around a vertical axis, but the layout must be designed to prevent the rows of panels from casting shade on each other. A hybrid horizontal/vertical tracking system is referred to as a tilted single axis tracker (TSAT).

A tilted single axis tracker is a hybrid of horizontal and vertical tracking systems. (Source: The University of Queensland)

In addition to the panels or mirrors, tracker hardware may include steel posts or rails, cables, junction boxes, slew drives to rotate the panels, and hydraulic dampers to provide flexible resistance against the wind. The structures must be robust, well-anchored, easily transported and installed, and must be able to withstand the elements, including hot or cold locations, strong storms, heavy rain or snowfall, and even seismic activity.

Perceptions of solar tracking

For a time, solar tracking for large-scale installations had a reputation as a more expensive and maintenance-intensive technology despite the higher energy capture rates. Some of these reliability perceptions still linger. In actuality, according to Greentech Media, solar tracking systems boast a 99.9 percent uptime rate and advances continue in mechanical functionality and software-based optimization. In fact, the U.S. Energy Information Administration reports that of all utility solar projects constructed in the US in 2016, 79% used solar tracking rather than a fixed panel.

Advances in solar tracking

Despite being perceived as a less exciting infrastructural component of the solar industry, solar tracking has seen a number of technological and mechanical breakthroughs that promise increased growth due to lower costs and increased weather resistance.

One of the challenges is the economics of land use and site preparation. Until recently, utilities and third-party solar farm developers had to plan carefully to ensure that the needed amount of power could be generated from a particular site size given solar tracker configurations (e.g. HSAT vs VSAT). Additionally, they had to take into consideration the site contours and how much grading and preparation would be required to adapt the site to optimized solar tracker deployment. As a result, there has been stiff competition for flat sites.

Utilizing slopes and rolling terrain

In California, a company called Nevados Engineering is on the verge of launching single axis trackers designed to work on south-facing and sun-facing slopes and varied terrain, which offer better solar exposure. The company’s All Terrain Tracker (ATT) technology uses unique bearings that allow articulation with the driveline so it can fit the terrain using the same kind of posts as on flat land. Every post in the row is used to withstand the slope load, which is the toppling force exerted by the structure being pulled down the hill by gravity. The tracking units can handle slopes of over 20 degrees and can also handle side-to-side, and vertical, post misalignment of up to two feet. The advance vastly reduces the need for grading and landscaping, enabling solar developers to purchase significantly cheaper sloped or contoured terrain to maximize solar energy capture.  The company’s software enables developers to predict solar production for a site to calculate the economics.

Nevados Engineering’s All Terrain Tracker technology and help install solar trackers in all kinds of terrains. (Source: LA Cleantech Incubator)

“We need to look beyond what we expect solar trackers to do,” said Yezin Taha, CEO of Nevados Engineering. “Installing trackers on a slope can capture 7% more solar energy than trackers on flat ground, and 32% more energy than fixed tilt systems.”

Leveraging non-standard sites

Another recent development, floating ground mounts, has also made more large-scale solar sites available. While most solar trackers are mounted on posts that are driven directly into the ground or less frequently, on posts that use concrete foundations or ballast, certain kinds of terrain won’t support driving posts or invasive concrete structures. These sites, such as capped landfills, can be highly suitable for solar installations due to their height, restricted access, and unsuitability for other uses. The development of floating ground mounts, where the tracker is placed on a gravel pan that can be filled with a variety of materials, has made possible the use of these kinds of sites where posts can’t be driven.

Resisting the elements

Advances in resistive materials also show promise for the solar tracking industry. Posts and other tracking components are typically made of galvanized steel, which means they are coated with a high zinc content layer. Galvanization has been the most weatherproof and anti-corrosive solution to-date, but it still allows rust to form over time. Moisture can be an electrolyte that enables galvanic corrosion to occur, so that as humidity increases, the rate of corrosion increases. Also, atmospheric contaminants can catalyze the chemical reaction. Chlorides in marine environments, as well as and sulfur dioxide and nitrous oxides in industrial locations, may present a higher risk of corrosion.

Recently steel companies such as POSCO have begun to add magnesium to the coatings for further protection, a process that had been prohibitively complex until now.  POSCO’s PosMAC is a combination of zinc, aluminum and magnesium that “heals” any exposed parts of the steel by forming a layer of simonkolleite, a stable compound, over the vulnerable area. The development promises greater ruggedness and durability for tracking components.

Streamlining operations and maintenance

Finally, the advent of sensors, drone-based inspections, and the Internet of Things (IoT) will have a growing impact on solar farm operational costs by enabling remote monitoring, hardware predictability, just-in-time replacement and streamlined functioning. An operator in Germany could easily determine when to clean the solar panels in a Dubai installation after a dust storm or know when a tracking mechanism becomes jammed.

Solar tracking mechanisms can be monitored easily with the help of artificial intelligence. (Source: Micro Power Grids)

These advances, coupled with the cost efficiencies of solar and the increasing availability of grid-level energy storage solutions, will continue to boost the utility-scale solar energy market and take market share from fossil fuel power plants. The expansion of solar power offers a significant opportunity for multiple industries, from materials providers to solar panel manufacturers, tracking system component manufacturers, sensor distributors, battery makers, software developers and even drone suppliers. By leveraging the confluence of these technologies each industry can ensure that they participate in the solar market’s return on investment.

Tom Breunig is the publisher of Cleantech Concepts, an online magazine and market research firm tracking cleantech R&D and innovative business models.

The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

However, these building projects are on another level of huge, and with all the megacities popping up throughout the country, China boasts many of the biggest infrastructure projects in the world. Here’s the Steel Wire’s look at some of the most impressive to date.

Three Gorges Dam

China is home to the largest dam in the world, measuring 1.5 miles in length and sitting 60 (!) stories tall. The Three Gorges Dam took 1.92 million tons of rolled steel to complete, along with 10.82 million tons of cement and 1.6 million cubic meters of timber. The dam opened in 2003 on the Yangtze River and last year, generated a record-high 97.8 billion kilowatt-hours of electricity, 4.35 percent higher than the previous year.

The Three Gorges Dam is the biggest dam in the world and is made up of 1.92 million tons of steel. (Source: Wikipedia)

Beijing Capital International Airport

Beijing Capital International Airport (PEK) was the second largest and busiest airport in the world in 2016, just behind the Hartsfield–Jackson Atlanta International Airport in the U.S. PEK recorded 94,393,454 passengers that flew in and out in 2016, a 5 percent increase from 2015, and is easily the biggest airport in all of Asia.

Beijing Capital International Airport is the biggest airport in Asia, and second in the world. (Source: Top China Travel)

The first phase of the airport cost USD 3.5 billion and was completed in 2008, but in order to handle the growing number of passengers, an expansion project is planned for 2025. The estimated 5-year project will almost double PEK’s capacity and cost an additional USD 13 billion.   

Jiaozhou Bay Bridge

China is also home to the longest sea-crossing bridge in the world. The massive structure stretches over 26.4 miles and connects the cities of Qingdao and Huangdao. The 110ft width accommodates 6 traffic lanes that are supported by 5200 steel pillars.

The Jiaozhou Bay Bridge is held up by 5200 steel pillars. (Source: Feel the Planet)

The bridge first opened in 2011 and took USD 2.3 billion and over 10,000 workers to build. The Jiaozhou Bay Bridge also took 450,000 tons of steel to complete, allowing the bridge to be able to withstand earthquakes up to 8.0 in magnitude, typhoons and the force from a 300,000-ton object.  

Jiuquan Wind Power Base

Not surprisingly, the largest wind farm in the world located in China. Jiuquan Wind Power Base is made up of 7,000 turbines that generate enough electricity to sustain a small country. The plant was approved in 2008, and the government has pledged an additional USD 17.4 billion by 2020 as part of the effort to develop China’s renewable energy industry. For now, only 3.3 percent of all the electricity generated in China comes from wind turbines. With the additional investment, Jiuquan Wind Power Base will be able to generate a massive 20 gigawatts of sustainable electricity.

The Jiuquan Wind Power Base generates enough energy to power a small nation. (Source: The New York Times)

New Century Global Center

What does the biggest building in the world look like? A mini country. Located in Chengdu, Sichuan province, the New Century Global Center combines a shopping mall, water park, hotels, movie theaters, offices, restaurants, ice rink and more into 19 million sq.ft. of space. The structure is made of glass and steel and measures 500 meters long, 400 meters wide and 100 meters high. Designed by architect Zaha Hadid, it even has artificial sun for the perfect weather, 24 hours a day.

The New Century Global Center located in Chengdu is the largest city in the world. (Source: Thousand Wonders)

Port of Shanghai

The world’s biggest ports are mostly located in China, and the biggest one is the Port of Shanghai. In 2012, 744 million tonnes of cargo and 32.5 million twenty-foot equivalent units (TEUs) of steel containers passed through the port. The entire area of the port on the Yangtze River covers 3,619km² comprised of 3 main ports: Wusongkou, Waigaoqiao and Yangshan Deep-Water Port. About 25 percent of China’s trade passes through the Port of Shanghai, or 2,000 steel container ships per month.

The Port of Shanghai is the largest port in the world and a quarter of China’s trade passes through it. (Source: Thomson Reuters)

Most recently, the 4th phase of the Yangshan Deep-Water Port was completed, making it the largest automated port in the world. It spans across 2.23 million square meters, and can automatically handle 4 million standard containers per year, or 25 per hour. It was also built to accommodate the heaviest ships in the world.

China is using its steel to build up the country’s infrastructure, and set world records along the way. Besides being impressive in size, the structures are expected to contribute to greater connectivity and economic prosperity throughout China.

Cover photo courtesy of Morgan Stanley.

CEO Kwon explores CES 2018

As such, CEO Kwon made his first official visit to the 2018 Consumer Electronics Show (CES) in Las Vegas earlier this month to stay on top of the latest trends in connectivity and smart solutions that can be applied to the manufacturing process in smart factories.

SEE ALSO: POSCO CEO Ohjoon Kwon Visits CES 2018

Ultimately, a smart factory for POSCO would entail using smart sensors to pick up data, smart analysis through AI and automated production processes. Moreover, the smart factory would store and analyze its big data and apply it to make future improvements and prevent malfunctions. Aligned with many of POSCO’s business growth engines, major topics and themes at CES 2018 included smart homes, smart cities, autonomous cars and AI, and more than 3,900 companies put forth their best innovations.

Smart Connectivity

As more and more cities undergo smart transformations, the next big trend will be data collection and analysis through 5G connectivity. It was no surprise to see numerous innovations in smart transportation, smart grid, public safety, healthcare, data analytics and more at CES 2018. Moreover, city officials from early-adapting cities such as Kansas City, Miami and Las Vegas took to the stage to discuss their cities’ smartization plans. Some of the topics discussed included using GIS mapping software, smart construction, inclusive technology and autonomous transportation to enhance citizens’ productivity, efficiency, safety and well-being.

CES 2018 was a platform for smart city discussion. (Source: Bosch)

CEO Kwon visited related booths to learn about new technologies POSCO could apply to its businesses. Currently, POSCO’s smart factories are run by POSCO ICT’s smart platform called PosFrame, which allows the factory to apply a digital genome map to operations via data collection, instantly convert smart factory initiatives in domains, act as a common platform for new technologies and apply the same, standardize smart factory model to other facilities through reusable software.

Also at this year’s CES, POSCO ICT signed an MOU with DPR Construction, a leading smart construction company to apply PosFrame to construction sites for more efficient, cost-effective and smarter construction processes.

Smart Transportation

Another major theme at this year’s CES was mobility. Namely, autonomous and electric mobility. Companies from all across the board from traditional car manufacturers and software companies to gaming companies lined up to showcase their new innovations.

Even as the market for sustainable EVs and autonomous EVs look to expand in 2018 and beyond, EVs only make up about 1 percent of the global fleet of cars and there’s still a ways to go before EVs become the norm. Drivers need to feel safe in their EVs or autonomous EVs, want greater range on a single charge and need to see more charging infrastructure in their communities before making the switch.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

What’s more is that just because a vehicle runs on electric batteries, it doesn’t automatically mean the vehicle is eco-friendly or transmits less harmful emissions. Manufacturers and consumers alike have to take a lifecycle approach to assess the car’s impact on the environment from production to end of life recycling.

POSCO works with numerous partners to develop leading solutions for electric vehicles.

That’s why POSCO is working with automakers to come up with vital solutions in the auto industry for a greener future. It supplies partners with an advanced high-strength steel (AHSS) called POSCO GIGA STEEL that is both lightweight and super strong, allowing cars to travel with less energy without compromising passenger safety.

POSCO is also a lithium provider and has developed an innovative technology to speed up the extraction process, saving time, costs and damage to the environment. It also works with car makers to apply premium electric steel to partners’ electric motors to increase efficiency and cut costs.

With so many exciting new innovations and technologies surrounding EVs, POSCO will undoubtedly play a significant role in ensuring automakers have the tools they need to realize a green future.  POSCO will work to stay ahead of newly emerging technologies to enhance the efficiency, sustainability and performance of all of its solutions.

For the International Broadcasting Center (IBC) completed last April, builders used POSCO’s Pos-H steel. Building parts were made by precisely cutting and welding the hot-rolled steel plates and thick plates. Pos-H is custom-made for structures and does not produce any waste unlike existing hot-rolled shape steel with fixed dimensions. In addition, POSCO’s dry fire-resistant cladding technique was applied to all the pillars of the IBC. The dry fire-resistant cladding technique eliminates the process of applying fire-resistant paint to pillars for fire prevention, and instead, fire-resistant materials are wrapped around the pillars.

The Media Residence that will house reporters during the PyeongChang Winter Olympics resembles a steel showroom due to its impressive design. PosMAC, which is over 5 times more corrosion-resistant than general galvanized steel sheets as it is coated with zinc, magnesium and aluminum, was specially printed to bring to life the fiber texture. PosMAC was used for the exterior of the bathrooms and walls for durability as well as artistic value. The surface steel plates plated with aluminum and zinc, called ALZASTA was treated to achieve a glittering spangle pattern texture and applied to the residence fire doors, valve enclosures and hallways. PossSD, stainless steel with a level of reflectivity equal to that of a mirror, was used inside the bathrooms.

The Media Residence was completed on December 15, after 8 months of construction. All of the 300 rooms were prefabricated in a factory and assembled at the site. This is known as modular construction. It reduced the construction period by 18 months compared to building with general concrete. More than anything else, modular construction makes it possible to move the structure to another location and reuse it. In this respect, modular construction is regarded as the best choice for the facilities that will be removed after the Winter Olympics. The Media Residence will be reused as a hotel or dormitory.

Finally, the Kwandong Hockey Center’s exterior walls are made of 329LD POSCO stainless steel, which is highly corrosion-resistant and robust. POSCO provided the structural analysis by calculating the optimal thickness for the walls and reduced the thickness by 25 percent.  

After the PyeongChang Winter Olympics and Paralympics, POSCO will continue to provide construction solutions through is WPP and technologies for its partners.  

Cover photo courtesy of Heerim.

With the performance increase in both steel and non-steel businesses in Korea and overseas, operating profit was highest it’s been in the last 6 years, and the operating profit to sales ratio was 7.6 percent. Year-on-year consolidated sales increased by 14.3 percent and operating profit and net profit increased by 62.5 percent and 183.7 percent respectively.

The total operating profit of POSCO’s non-steel businesses, which reached KRW 10 billion last year, also turned into a surplus. There was an overall increase in non-steel businesses including trade, energy, ICT, chemicals and materials, resulting in KRW 1.0927 trillion of profits, up KRW 1.0798 trillion from last year.

This is in line with POSCO CEO Ohjoon Kwon’s strategy to focus on group management by securing future growth engines and reforming non-steel businesses.

※ Total operating profit per sector

Indonesia-based integrated steel mill, PT. KRAKATAU POSCO, also generated a surplus for the first time since operations began in 2014. Mexico-based automotive steel sheet plant, POSCO Mexico, as well as India-based cold rolled steel corporation, POSCO Maharashtra, also achieved their highest operating profit, tripling the total operating profit of overseas steel business.

Moreover, separate sales and operating profit increased year-on-year by 17.4 percent and 10.1 percent respectively to KRW 28.5538 trillion and KRW 2.9025 trillion, and the net profit was KRW 2.5457 trillion.

Production and sales decreased year-on-year due to the repair and facility rationalization of Pohang Blast Furnace No. 3, but the sales ratio of World Premium products with better technology and higher returns increased to 53.4 percent, its higher ever.

Financial soundness was also saw improvements. POSCO’s Consolidated debt ratio decreased by 7.5%p year-on-year to 66.5 percent, the lowest since 2010. Separate debt ratio also decreased by 0.5%p year-on-year to 16.9 percent, constantly renewing the lowest record on a yearly basis.

POSCO also demonstrated a cumulative financial improvement of KRW 7 trillion with 150 cases of restructuring in the last 4 years, reinforcing the business structure as well as financial competency. Accordingly, this year the company expects to make more investments in new growth engines such as lithium and cathode materials as well as energy and construction in addition to renewing the facilities at its steel mills. Thus, there will be a budget of KRW 4.2 trillion for consolidated investment, an increase of KRW 1.6 trillion compared to last year. The consolidated sales target is KRW 61.9 trillion.

※ POSCO’s 2017 business performance