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Future of steel is still bright

The main theme of the new Steel Gallery is ‘Harmony’ which represents that steel will be together with humanity for the next generation. The gallery is mainly composed with future advanced technology that gives incredible experiences of high class technology in POSCO’s world premium products.

One of the technologies we can proudly recommend to feel in our gallery is electric vehicle section. POSCO recognized that future vehicle trend will be dramatically changed with renewable energy such as electrically fueled vehicles. In the Gallery, POSCO introduced its own technology that plays a crucial part for future generation of vehicles such as lightweight frame and various solutions.

VR technology allows giving vivid experience about steel

Steel will be still with us

Another theme of the gallery is close to human life. One specific feature that the gallery makes so impressive is smart system, an interactive wall that helps better understanding of steel to the people who are not familiar with steel. Animated images of steel processing and VR Virtual Reality) are the good examples of smart POSCO. These advanced elements describes important role of steel for our future life.

Collaboration of visual art and steel expressing the steel in our life

‘Kinetic Steel’, Harmony with kinetic art

Finally, Steel Gallery shows fabulous collaborations of art work and steel in terms of kinetic art (also may refer to kinetic steel). For instance, shattered pieces of steel gathered and shape several objects that we can easily see in our life, such as vehicles, buildings and so on. POSCO expects that this incredible artistic feature may bring positive inspiration about steel.

Convenient access to POSCO’s premium products at Steel Gallery on the 2nd floor

As it mentioned above, the ultimate purpose of the Steel Gallery is to get closer to all generations by showing diverse technologies and visual impacts so that general population understand that steel is one of the fundamental elements of our current and even for the future life. POSCO will continue to make efforts for ‘better life for humanity’. The clips below represents that we also hope our achievements bring positive inspiration in global scale.

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.

1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

More and more automakers are adding EVs to their fleet. (Source: Engineering and Technology)

While all this sounds promising for the environment, EVs don’t automatically translate into lower GHG emissions. According to World Auto Steel (WAS), the emissions from vehicle production will be greater than the amount of emissions from driving. As such, it is becoming increasingly important for manufacturers, policymakers and consumers alike to view material options by considering its life cycle assessment (LCA).

World Auto Steel Case Study

WAS conducted a case study in which they compared two popular lightweight materials for EVS; aluminum and Advanced High-Strength Steel (AHSS). The study followed the University of California Santa Barbara Automotive Energy & GHG Model (UCSB Model) for a comprehensive analysis of each material’s total energy use throughout its entire life cycle, from production to end of life recycling. For the study, WAS examined 1,000,000 BEVs of equal range that were made up of either entirely aluminum or AHSS.

BEVs made of AHSS require over 15 percent less energy than aluminum cars. (Source: World Auto Steel)

The study found that automakers can make over 17 percent more BEVs made of AHSS than aluminum BEVs with the same amount of energy. In other words, with the energy it takes to make 1 million aluminum BEVs, automakers can make 1.17 million AHSS BEVs.

Why is AHSS More Energy Efficient?

Aluminum production requires 8 times more energy per kilogram than steel production because the production process of aluminum is much more complicated and involves more steps than steel production. The aluminum BEVs in the study used up 30 percent more energy than those made from AHSS throughout its entire life cycle. Plus steel is 100 percent recyclable and can be reused almost indefinitely.

There are many sources of emissions output involved in the entire life cycle of a vehicle. (Source: World Auto Steel)

This poses a serious need to reexamine existing policies and regulations that only seek to reduce tailpipe emissions. By also taking into account emissions from the production of materials all the way to how a car is disposed at the end of its life cycle, automakers can grasp a better picture of the real impact of their choices on the environment.

A Sustainable Choice

As a solution-providing partner for automakers, steelmaker POSCO designed the perfect AHSS for cars that is lightweight, extremely strong, highly formable and environmentally friendly. POSCO GIGA STEEL belongs to the highest category for tensile strength of greater than 1GPa (Gigapascal). It can withstand more than 100 kg of force per square millimeter, making it 3 times stronger than aluminum. It is also 3.5 times cheaper than aluminum and 2.1 times cheaper to manufacture.

SEE ALSO: Infographic: Driving the Future with POSCO GIGA STEEL

POSCO GIGA STEEL is three times stronger than aluminum.

In 2016, POSCO sold 9 million tons of steel sheets for cars, making up 10 percent of the entire global automotive market for steel sheets. POSCO GIGA STEEL was designed to further improve the performance and efficiency of POSCO’s auto partners around the world. As the auto industry heads towards a future where environmentally-friendly EVs become the norm, POSCO will strive to equip its auto partners with the materials and tools necessary to stay ahead and competitive.

There are several different definitions for drones, so the numbers may vary, but Business Insider Intelligence projects drone sales of more than USD 12 billion in 2021 for military, personal and commercial use.

Commercial applications for drones are especially on the rise with an expected compound annual growth rate (CAGR) of 19 percent from 2015 to 2020, and The Association for Unmanned Vehicle Systems International estimates commercial drones will be worth USD 82 billion by 2025.

New ways of incorporating drones into the workforce are popping up everywhere, such as for marketing, expedient delivery and information gathering. In heavy industries like steel manufacturing, drones are playing an increasingly important role in workplace safety. When paired with AI, drones have even more possibilities for minimizing workplace hazards.

Accident Prevention

An accident in a heavy industry worksite can be disastrous for workers, the company as well as the environment. That’s why it’s important for factories to be able to monitor and prevent potential dangers before they happen, and it’s one of the most widely applied areas for drones.

Audi’s factory uses drones for automated parts transportation. (Source: Audi)

For example, steelmaker POSCO is incorporating drones into its smart factory to monitor gas leaks that are hard to detect. Workers also wear smart sensors that alert them of potential danger, and let others know their location in the factory.

SEE ALSO: How Factories Produce Steel – the Smart Way

Keeping Humans Out of Dangerous Industrial Areas

Besides monitoring the workplace, drones can be of practical use and take on dangerous and costly tasks formerly done by people. This includes accessing dangerous places. For example, drones can take aerial job site survey photos, eliminating the need for a pilot, helicopter and other employees. Construction companies are using drone mapping to create 3D models of their projects, saving time and resources along the way.

Drones can keep workers out of dangerous workplaces. (Source: Fortune)

The mining industry also uses drones to enter hazardous areas to gather information before sending in workers. Smart drones, or drones equipped with AI software, can provide and process information in real time, saving companies major costs.  

Accident Investigation

Even with drones, not all accidents are preventable. Once an accident occurs it’s vital to have accurate data that tells exactly how the event played out. Drones are a useful forensic tool to recall events and diagnose the situation. With this information, companies can not only fix equipment and operational failures, they can use the data for legal matters regarding insurance claims, court fees and compensation litigation.

Workers can use drones to access stored information. (Source: The Economist)

Due to the increasing adoption of drones in the workplace and the vital role they play in worker safety, the commercial drone market is looking to expand. With increased investment, drones are being upgraded from its structure to the software that goes in them.

What Drones are Made of

Drones are largely composed of a frame, motor, camera, propeller, sensor, controller and battery. The frame serves as the base of the drone to which various parts mounted. Therefore, the frame of the drone has to be light yet durable, in order to maintain its structural integrity and minimize battery consumption.

Most drones are powered by an electric battery. On longer flights and in harsh weather conditions, the motor gets overworked, putting a toll on the battery. Engineers are constantly working to improve the capacity of the battery, which usually results in a bigger, heavier battery pack.

The DJI Phantom 4 is an example of a drone with a magnesium body for weight reduction and added strength. (Source: Petapixel)

In order to make up for the added weight and volume, manufacturers are turning to light and strong materials such as magnesium, the lightest commercial metal available. Magnesium alloys are lighter than aluminum alloys and are widely used in smartphones, tablet PCs and automotive and aircraft parts. Magnesium alloys have high thermal conductivity and excellent heat dissipation. It also has high strength and durability against impact. Moreover, it is corrosion-resistant and cost-effective, making it an ideal material for drones.

The market for drones will be an exciting one to watch going into 2018 due to friendlier regulations, significant investments and drones’ unlimited potential for application. It will result in more industries actively incorporating drones into their operations, and the world can expect the launch of more technologically and structurally innovative drones that will play an increasingly vital role in workplaces.

Cover photo courtesy of Wired.

Stephen Zoepf is the executive director at the Center for Automotive Research at Stanford University.

To kick off the forum, Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University gave a presentation called “Electric Vehicles: Adapting to a Changing Marketplace” to share his insights on what future markets will look like and implications for automakers, suppliers as well as consumers.  

Here are the key takeaways.

The Future is Going to Look Very Different

According to a report by RethinkX, an independent research group, 6 trillion U.S. passenger miles will be driven in 2030, up 50 percent from 2021. Of those miles, 95 percent will be driven in self-driving, electric and shared vehicles and only 5 percent of those miles will be driven by internal combustion engine (ICE) vehicles.

The report goes on to say that autonomous EVs (A-EV) will make up 60 percent of the U.S vehicle stock, and those vehicles will be part of a shared-mobility service. As more people start to share cars, the overall number of vehicles on U.S. roads will drop from 247 million in 2020 to 44 million in 2030.

SEE ALSO: Going Autonomous: The Transformation of the Transportation Industry

The change is already happening. In 2016, shared-mobility companies such as Uber and Lyft drove 500,000 passengers per day in New York City, which is triple the number of passengers from 2015. Today, more and more automakers like Tesla and GM are also entering the shared-mobility market.

EVs are already becoming prominent in major cities around the world. (Source: Time)

The findings illustrate a future where people drive more miles with fewer cars, which are fueled by electricity, and shared instead of owned. It’s a radical visualization of the future, but one that is driven by economic forces.

By 2021, shared vehicles will be 4 to 10 times cheaper per mile than private vehicles, and American households will save an average of USD 5600 every year by switching to shared EVs from cars fueled by gas, according to RethinkX.

Zoepf shared another report by ARK investment Management which echoes the finding above- in the next ten years, people will drive three times more kilometers using half the number of cars and the number of EVs on the road will increase 10 fold.

What It Means for Car Manufacturers and Suppliers

A shrinking vehicle fleet consisting of mostly EVs can only mean one thing: a major disruption to the current automotive market.  

Right now, the average lifecycle of a car in the U.S. is 11 years. However, the majority of a car’s total mileage is driven in its early years. It’s the same for shared vehicles, but they are driven about 80,000- 90,000 km per year, 10 times the distance of privately-owned cars. What this shows is a compression of the vehicle lifespan in its first 3 to 4 years.

These statistics pose critical concerns for automakers.

Will overall vehicle sales decrease in the coming future? According to Zoepf, that’s the wrong question to ask. Instead, automakers should be asking “will I make money?” Automakers have a couple of choices. They can either adapt early on and manufacture EVs and/or A-EVs at a competitive price, or become a shared-mobility provider. Early movers such as Tesla, GM and Volvo are already shifting their business strategies to fit these models.

GM recently launched Maven, a car-sharing service. (Source: The Verge)

Another question to ask is how these trends will affect vehicle design. With shortened vehicle life-cycles, manufacturers can either design cars to last only 3 to 4 years for quick replacements, or opt for the aviation model where the vehicle will be built to last, but the interior parts, such as seats, will be replaced frequently. Whatever route manufactures choose to take, gaining a competitive edge in vehicle and service quality early on will be key.

What Will This Mean for Vehicle Material Suppliers?

If building cars to last is no longer a primary priority, will car makers downgrade their materials? The short answer is not a chance.

Through a customer survey study Zoepf conducted of 60,000 Zipcar customers, he showed that the number one factor when choosing a car is safety. However, there is no one, ideal model or type of car that is preferred in a shared mobility framework. The purpose of the trip determines the type of vehicle, and the success of a shared mobility service provider will depend on the variety of cars it can provide – all with competitive safety ratings.

POSCO ICT already has ChargEV stations set up across Korea. (Source: POSCO ICT)

The supplier’s role will be to continue providing high-quality materials that can boost the safety and cost competitiveness of future vehicles. Steel suppliers have to keep developing lightweight and high-strength steels like POSCO GIGA STEEL, and research new materials that can boost the competitiveness of EVs such as POSCO’s Hyper NO for motor cores, battery materials and POSCO ICT’s EV charging service and infrastructure.

There remain numerous challenges that lie ahead for a greener and safer future with EVs and A-EVs, and it might take longer than experts predict for lawmakers, corporations and consumers to all agree on an optimal mobility model. However, change is already underway and automakers and suppliers alike need to strategize and adapt early on to take advantage of the upcoming opportunities.

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

Cover photo courtesy of GOV.UK.

CIAPE is the largest automotive parts expo in China, and has been sponsored by China’s Ministry of Commerce since 2008. As many as 200,000 people participate in the event, including over 2100 companies around the world to exhibit various automotive products. On display this year were various electric vehicles, components, electronics and automotive parts and manufacturing facilities.

POSCO actively promoted POSCO GIGA STEEL at its exhibition booth where visitors browsed various automotive parts made of GIGA STEEL. Visitors were especially impressed with POSCO GIGA STEEL’s lightweight, cost-efficient and high-performance qualities, as well as POSCO’s production technologies.

Throughout the expo, POSCO introduced practical applications of its products including wire rods for automobiles, electrical steel sheets, stainless steel for various uses as well. Various automakers and parts makers could also experience POSCO’s steel mills and production processes through VR technology.

A total of 1,583 people visited POSCO’s booth over the 3-day period to browse the electrical sheets, wire rods and stainless steel products as well as automotive steel plates. In particular, as many as 1,020 people flocked to the GIGA STEEL Experience Zone where they could compare the hardness, weight and thickness of aluminum and GIGA STEEL.

POSCO also held 71 meetings with 188 potential customers from various sectors, including automakers and parts makers in China and promoted its GIGA STEEL and automotive World Premium Products (WPP) to potential business partners.

One of the visitors was Lee Jeong-hae, CEO of Sungwoo Hitech Yancheng. He said, “I was able to learn that GIGA STEEL is more effective in reducing weight than aluminum. I am truly looking forward to seeing more automakers use GIGA STEEL instead of aluminum.”

This was the first time POSCO attended the event, and hopes to use it to create momentum for increasing the sales of its World Premium steel products and automotive materials, and to expand its network of partners in China.

Cover photo courtesy of CME Shanghai.

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Kashkadarya Governor Ruziev Zafar Sharopovich, Uzbek government officials, POSCO DAEWOO Managing Director Hyun-soo Kim, and representatives from Hyundai E&C and the Asian Development Bank were among the attendees at the completion ceremony.

The project dates back to March 2013, when Uzbekistan’s state power authorities and the POSCO DAEWOO-Hyundai E&C consortium signed a construction agreement for the 929 MW combined cycle power plant. The USD 862 million project was financed by the Asian Development Bank.

This is the biggest single-unit power plant in Uzbekistan, and will account for 6.6 percent of all the power produced in the country. The plant’s electric power will be supplied to the southern parts of Uzbekistan.

As for the construction process itself, the consortium followed a turn-key process, meaning all the operations including engineering, purchasing and construction were carried out simultaneously.  

“POSCO DAEWOO’s global network, project operation and management skills paired with Hyundai E&C’s construction skills and technology created the synergy that led to the success of this project,” said an official of the consortium. “POSCO DAEWOO plans to use this opportunity to expand its IPP projects beyond Central Asia to Latin America and Africa.”

POSCO DAEWOO is currently operating the first 30MW private capital power plant in Papua New Guinea and is working on building a second plant. Also in the works are new private capital power plant projects in Myanmar, Indonesia and Latin America. POSCO DAEWOO plans to carry out projects related to gas combined cycle power plants and solar power all over the world, and expand the power plant business to the size of 2GW in generation capacity by 2020.

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Nam Tae-Gyu in his early days on site at a POSCO steel mill.

Nam’s Battle with the Sublance

Five years into his first job ever, Nam hit his first hurdle. The sublance used for detecting temperature and carbon levels of ingot iron in the converters kept breaking down. The brutal process for replacing the sublance probe took a physical toll on the workers and Nam remembers frequent nosebleeds and extreme fatigue vividly.

Nam explained, “Pure iron is converted into steel in a smelting process that requires 1700 °C of heat and oxygen incorporated into the ingot iron. When the process is 80 percent done, a sublance goes into the ingot iron inside the converter to take temperature and carbon measurements. Then, it sends the data to the operating room. With that data, the operator decides if the process should be continued or stopped. Afterwards, a sublance goes into the post-steelmaking converter again, measures the temperature and the amount of carbon, and then sends that data to the operator one last time. The data is used for the slab and bloom making processes as well. In a way, the sublance acts as an important key that decides the final quality of the steel. So if the sublance doesn’t work properly and sends the wrong data to the operator, there will be a tremendous loss.”

A sublance, which has to be inserted about 1 meter deep into the ingot iron, has a 2-meter probe with a sensor measuring the temperature and carbon and oxygen components. This disposable probe stays in the 1700 °C converter for 5 seconds and transmits the data to the monitor of the operating room through a cable inside the sublance pipe. The problem is that the travel distance of the sublance changes whenever a new probe is equipped. For that reason, facility managers must check the accurate position and adjust the length on every occasion. The sublance had to be adjusted at the top of a 7-story steel mill that is 20 meters higher than the top of the converter. To make it worse, technicians had to physically climb up and down dozens of times for 3 hours to alter the length manually if the lift didn’t work.

Liquid ingot iron in a steel mill during the smelting process

Nam’s First Masterpiece

Nam knew there had to be an easier way. After studying the sublance diagram and its instruction manual, he finally had an “aha moment.” He installed a digital location detector in an encoder form that could receive data to determine the travel distance of the sublance from a cambox instead of a touchbar that bred most of the errors in the previous system.

This allowed digital information on the travel distance of the sublance to be sent directly to the operator who in turn could locate the probe accordingly. This alone reduced errors in the data for every probe change. Furthermore, Nam even installed a detection system to eliminate all errors of the previous touch bar.

In the end, the improved sublance allowed 2 people to finish in 10 minutes what 3 people had to work on for 3 hours previously. The measurement success rate increased from 87 to 95 percent and lead to cost reductions and a shorter operation time overall for the smelting process.

Another Hurdle, Another Masterpiece

In 1997, Nam met his second and biggest challenge of his time at POSCO. A converter tilting device that could tilt and rotate a 1300-ton converter broke down. No one expected this machine to malfunction, as it was made with certified parts with advanced technology brought in from Japan. The Japanese supervisors kept the device’s technology a secret for copyright reasons, so the Korean technicians didn’t know the inner workings of the machine.

The complex device was composed of four motors, reducers, inverters and other parts. In order to run the motors, they had to use a magnetic contactor and high-voltage circuit breaker, both imported from Japan and extremely expensive since they had a short lifespan.

“One time, a large amount of electric current spilled on the converter tilting device. A severe arc was generated and melted the magnetic contactor, causing equipment failure and a KRW 200 million loss. I tried to replace the contactor with a domestic model to improve it, but in the process, the electric current flowed to the field motor, and the electric arc leaned causing molten steel to leak. We had to stop all operations for 14 hours and ended up with 15 tons of leaked steel.” Nam recalls.

A converter holding molten steel being tilted

It was a dark moment for Nam and POSCO, but it only prompted him to work harder towards a solution. After much research, trials and failures, he developed a vacuum magnetic contactor made of domestic parts and applied a vacuum breaker to the tilting device, thus localizing the core parts of the converter tilting device. Also with the new technology, temperatures could be monitored at the bend, cable crossing point and cable access point for a real-time monitoring system for accident prevention. Nam not only raised POSCO’s production quality to global standards, he helped reduce quality deviation and eliminate waste.

Working Philosophy/ Results

Looking over his achievements at POSCO, it is easy to see why Nam was named a 2017 POSCO Master. In the past 40 years, he accomplished 15 patents, 32 outstanding proposals, 1830 general proposals and 156 knowledge records. Nam received the highest award of job competence, the Steel Mill Proposal King award, this year’s Person of Pocheon award, Korea’s Quality Manager award and was named a POSCO Master in 2014.

Nam Tae-Gyu walks through the fire prevention system at POSCO’s Steel Mill 1 with executives and employees.

Nam’s working philosophy is simple. Achieving the best results in steelmaking and maintenance requires hard work and passion, much like how a good harvest requires the sweat and blood of the farmer. With this in mind, Nam’s curiosity is unending as he continues to look for improvements and leave behind a legacy of hard work and dedication.