The Matarbari power plant construction project includes the construction of a 1200㎿ (600㎿ x 2ea) coal-fired thermal power plant on Matarbari Island, Chittagong, approximately 280km southeast of Dhaka, the capital of Bangladesh. Site improvement and port construction are also part of the project, expected to last 7 years. POSCO E&C invested a total of USD 4.5 billion in this project which is the largest coal-fired thermal power generation project in Southwest Asia. POSCO E&C is in charge of civil engineering for the power plant worth USD 840 million and the construction of the coal processing facilities and subsidiary facilities.

The Bangladeshi government and the Japanese government have been working together on this project as a means to speed up the low electrification rate of Bangladesh. The Sumitomo Corporation Consortium, which has been cooperating with POSCO E&C, won the contract last month from the project owner Coal Power Generation Company Bangladesh Limited.

POSCO E&C also recently won the contract to build the Yangon Waterworks Improvement Project in Myanmar worth USD 53 million. POSCO E&C selected Myanmar as one of its 5 strategic countries, and built the Yangon Hotel, the tallest landmark building in Myanmar. It is now accelerating its efforts to make inroads into the Myanmar construction market. Both projects are funded by the Japan International Cooperation Agency.

POSCO E&C President Chan-geon Han said, “We won this contract thanks to our world-class EPC technology and expertise, which has been recognized in the Central and South American energy plant markets. This contract is all the more meaningful because we won it at a time of declining overseas business due to a dip in international oil prices.”

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Textron Aviation 3D-Printed Engine

With the rise of new technologies, innovative ideas in the aviation industry are taking off in an effort to streamline manufacturing processes and improve the aircraft performance. In 2016, Textron Aviation unveiled its new 10-person business aircraft, the Cessna Denali, powered by a propeller engine that consists of 3D-printed titanium and steel components.

The Cessna Denali’s propeller engine that consists of 3D-printed titanium and steel components (Source: Textron Aviation)

The engine, which was developed by GE and Textron Aviation after a decade of research and development, features the benefits of a private jet but at an entry-level price. Engineers were able to reduce 855 separate parts down to just 12 components and also reduced the number of steps to make the engine.

There are numerous benefits that come with this 3D-printed engine. As 3D-printed parts and materials weigh significantly less than traditional parts, airline manufacturers can benefit from fuel-efficiency gains. The engine can burn up to 20 percent less fuel and achieve 10 percent more power compared to other engines of the same class. Also, the engine eliminates the risk of losses and leakage as the 3D-printed parts have no joints. A test flight is planned to take place in early 2018.

Virgin Atlantic Green Jet Fuel

As major contributors of carbon emissions, more and more airlines are choosing to go cleaner and greener. In partnership with LanzaTech, Virgin Atlantic has derived 1,500 gallons of low carbon jet fuel from waste industrial gases from steel mills. The carbon used to make the fuel, Lanzanol, is made from ethanol, which is captured through a fermentation process during steel production.

Virgin Atlantic’s Jet fuel made out of waste gases from steel mills (Source: Virgin Atlantic)

This innovative low carbon fuel project is expected to reduce the aviation industry’s reliance on oil. According to LanzaTech, the process could be retrofitted to 65 percent of the world’s steel mills, producing 30 billion gallons of ethanol worldwide. It will ultimately cut emissions by 65 percent compared to using standard petroleum-based fuel.

Dr Jennifer Holmgren, chief executive of LanzaTech, said “We can now truly imagine a world where a steel mill can not only produce the steel for the components of the plane but also recycle its gases to produce the fuel that powers the aircraft.”

Other airlines are also turning to greener solutions. While Airbus is collaborating with Siemens to introduce a range of hybrid passenger planes, Boeing is working with NASA to curb emissions through slimmed down aircraft wings.

Thanks to these innovative aviation projects taking off, commercial jets are becoming greener and more technologically advanced. If engineers can make 3D-printed parts to lightweight an engine and use waste from steel mills to fuel planes, one can only wonder what forthcoming innovations will further empower the aviation industry.

Of these many railways across the globe, which are becoming bigger, faster and longer today, The Steel Wire explores two recently established railway systems that opened limitless opportunities for the countries they connect.

The World’s Longest Tunnel Through the Alps

The world’s longest and deepest train tunnel officially opened in December 2016, after nearly two decades and USD 12.5 billion worth of construction work in Switzerland. The new 35-mile or nearly 57km tunnel was designed to replace the previous tunnel, which had limited train speed and cargo capacity as it would wind up, down and around the Alps.  

The Gotthard Base Tunnel (GBT), which can carry passengers deep under the Swiss Alps from Zurich to Lugano, has been praised across Europe for improving connectivity from Rotterdam to the Adriatic and revolutionizing European freight and passenger transportation. The almost perfectly flat pass allows high-speed passenger trains and heavy freight trains with twice the cargo to race through up to 155 mph. The efficiency and reliability of rail freight traffic and increased transport capacity of the route will allow as many as 260 freight trains to pass through the GBT every day (the maximum number was 180 for the previous mountain route).

The Gotthard Base Tunnel (GBT) in Switzerland, the first flat route through the Alps (Source: Zacharie Grossen)

The GBT was deemed one of the biggest engineering feats in Swiss history. The Alps have always posed an obstacle to trains traveling between the North Sea and the Mediterranean due to zones of stone that had been crushed to bits as the Alps formed. Throughout construction, project engineers were constantly battling the pressure from the Alps and the humidity inside the tunnel.

So how were they able to dig the longest tunnel ever, perfectly level, through the base of the Alps?

In order to keep the pressure of the Alps from crushing the tunnel, specially designed steel reinforcements were used for tunnels and flexible beams that had moving parts held together with clasps. Ventilation was of the utmost importance for the project engineers to fight close to 100 percent humidity and 115 degrees Fahrenheit temperatures. Nine-mile long ventilation tunnels were designed to bring fresh air into the tunnel.

This behind-the scenes video provides an immersive 360-degree look into the tremendous amount of work that’s been put into building the GBT.

The tunnel has overtaken Japan’s 53.9km Seikan rail tunnel as the longest in the world and pushed the 50.5km Channel Tunnel linking the UK and France into third place. This new world record may not last long though as China has recently announced plans to link the northern port cities of Dalian and Yantai under the Bohai Strait with a railroad that is an estimated 76 miles (123km) long.

Chinese-funded Railways Linking East Africa

Another recently completed railway project is the Chinese-backed electric railway across Africa, which officially began operation in October 2016. The electrified and environmentally friendly project will replace the previous, diesel-powered Addis Ababa-Djibouti line.  

The project was initiated when a pre-feasibility study conducted in 2007 showed the importance of renovating the line from an economic and financial perspective. This 466-mile or 750 km long tunnel is expected to cut travel time between the Ethiopian capital Addis Ababa and the port in Djibouti from three days by road to 12 hours by rail. The express line will also help optimize trade by giving businesses and passengers a cheaper and safer alternative to the notoriously dangerous trip between the two cities that are often clogged with cargo trucks.  

Africa’s first fully electrified cross-border railway connecting Ethiopia and Djibouti (Source: AFP)

According to Transport CS James Macharia, “The laying of the tracks in itself will have a huge impact on the GDP even before completion of the project. Local businesses are expected to contribute up to 40 percent of all supplies whilst more than 50,000 Kenyans will be employed either directly or indirectly by the project.”

The USD 4 billion project was built by China Railway Group and the China Civil Engineering Construction Corporation and partly financed by Chinese banks. Why did China see the railway as an investment opportunity?

China has provided about USD 12 billion in loans to Ethiopia since 2000, and is Ethiopia’s main trading partner for exports and imports. The railway construction will not only reduce the cost of doing business but will further create an export market for China’s booming steel and construction industries. According to Deborah Brautigam, professor of international political economy and director of SAIS-CARI, “They have overcapacity in China. They have steel that they want to use. They’ve got experienced companies that know how to build railways.”

These recently built railway systems show just how far reaching railway innovation and engineering have become. The world today would be unimaginable without these advancements. What other industries and businesses are next to evolve thanks to railway innovation?   

POSCO joins its partners in the energy industry at the Offshore Technology Conference held in Houston in May. The exhibition booth is prepared in collaboration with the high-profile offshore tool and material manufacturers in the energy industry.

Just as it did the previous year, POSCO presented a booth together with the offshore tool and material manufacturers in the energy industry. POSCO also consulted with various companies to expand new markets for its World Premium Products, including the high manganese steel for slurry pipes, steel for LNG terminals, and steel bars for tools and materials for energy mining.

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Consolidated sales slightly increased from the previous quarter while the operating profit ratio increased from 3.1% to 9.1%. Thanks to the increased profits of the steel division, as well as the improved performance of its non-steel divisions, such as trading and engineering & construction (E&C), POSCO’s operating profit increased by 189.4% from the previous quarter.

The aggregate operating profit of the steel division increased by 60.8% to KRW 1.0234 trillion while the aggregate operating profit of the trading division increased by 60% to KRW 126.7 billion. POSCO’s steel subsidiaries saw improved performance, helping overall operating profit. The E&C division also saw profits increase by 26.7% from the previous quarter to KRW 75 billion.

The operating profits of Zhangjiagang Pohang Stainless Steel (ZPSS) in China increased by 41.7% to KRW 52 billion while the operating profits of India POSCO Maharashtra increased by 80% to KRW 38.7 billion. Additionally, operating losses greatly decreased at PT Krakatau POSCO and Vietnam POSCO SS-VINA.

Compared to the previous quarter, the sales profit of POSCO increased by 9.7% to KRW 7.0674 trillion and the operating profit of POSCO increased by 63% to KRW 795.4 billion, resulting in a net profit of KRW 839.6 billion.

Due to the expansion and repair of Pohang blast furnace No. 3, production and sales volume slightly declined from the previous quarter, but the share of sales of its World Premium Products (WPP) increased from 2.4% to 53.4% compared to the previous quarter. Due to increased sales of higher value-added products, reduced costs, continued efforts to improve profitability, and the rise in steel prices, the operating profit ratio increased from 3.7% to 11.3% from the previous quarter.

POSCO’s debt-to-equity ratio has dropped to 17.6% separate and 71% consolidated, a 1.6%  and 6% decrease, respectively, from the previous year.

POSCO has also been moving forward with its restructuring efforts since the inauguration of CEO Ohjoon Kwon and aims to reduce the number of domestic affiliates from 49 to 32 by the end of this year. POSCO plans to secure the future of the company for the next 50 years by laying the groundwork of integrating smart technologies with the core competencies of the Group.  

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“Second Avenue Subway Project Causes 50% Rise in Prices” – New York Times, September 2, 1929

The idea for a Second Avenue line was first brought up in 1920 when NYC’s public transit was at maximum capacity moving around 1.3 billion riders per year having doubled since the pre-war years. When an official plan was introduced in September 1929, home prices increased 50% almost overnight. However, because of the Great Depression, WWII, and then the Korean War; the city did not break ground until 1972. But then in 1975 the project was abruptly stopped when the city ran out of money. Revived again in the mid-nineties, construction on the current line started in 2007.

Proposed Second Avenue line in June 1950. (Courtesy of New York Transit Museum)

“But it is highly improbable that the Second Avenue subway… will ever materialize.” – New York Times, January 17, 1957

Aside from the financial and political reasons that delayed the train for a century, the fact is that it is much more difficult to construct a new subway line in today’s New York than it was in the 1920s. When New York’s first subway line opened in 1904 there were less people, less buildings, and less regulations. At that time, crews would use the “cut and cover” method where they would close the road, dig up the street, and then cover it back up when finished – a feat that would be nearly impossible in today’s bustling Manhattan.

“Ground was broken yesterday for the Second Avenue subway.” – New York Times, October 28, 1972

In today’s New York, the city must use explosions (video) to help make way for the huge boring machines, reinforced with high-strength steel, that are able to cut underneath the foundation while cars and people are left undisturbed on the surface. Running 24 hours per day, these tunnel boring machines can dig around 50-60 feet per day leaving a huge underground path for the trains.

Second Avenue subway tunnel, May 21, 2015. (Photo courtesy of MTA)

While it is obvious that steel would be used in these projects, the sheer amount is astounding. From the tunnel boring machine to the steel wheels that ride on the steel tracks to the stainless steel subway cars — steel is everywhere. In fact, it was the advances made in steel technology in the 1880s that made New York’s first subway a reality. After the great blizzard of 1888 shut down city streets and brought down the electric power grid, the city started to make efforts to put things underground. In addition, the same advances in steel provided for taller and taller buildings that brought more and more people; so, the city needed a new form of transportation that could move everyone from their homes to their jobs. The NYC subway system started in 1904 with just 28 stations – it now has 468 stations running a total distance of 1,055 km (656 mi).

From the steel beams to the steel tracks to the escalators carrying passengers – steel is everywhere. (Photo courtesy of MTA)

Subways have redefined urban life in the modern era. This feat of engineering, like so many other urban wonders, is only possible because of the steel used to dig, build, and operate the subways. Watch the short film below (11:31) to see how the Second Avenue line began – and how it ended 97 years later.

*Cover photo courtesy of MTA

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At POSCO, there are many talented researchers, engineers, and factory workers, who are working constantly to make steel stronger, lighter, and longer-lasting. The Steel Wire sits down with three of those POSCO employees who have played essential roles in helping to establish POSCO as an industry leader in automotive steel solutions.

Q1. POSCO has relied on its experts to become an industry leader in advanced automotive steel manufacturing, and you have all played important roles within POSCO’s development of automotive steel. Can you tell us about the fields you are in and what your role has been?

[Shin Seung-cheol] For the last three decades, my main focus was to secure POSCO’s position as an industry leading automotive steel producer. Currently, I am at Gwangyang Steelworks working to create steel innovations and develop new technologies.
[Cho Byeong-ho] I work in the cold rolling department at Gwangyang Steelworks. Since joining POSCO in 1990, I have been working to develop World Premium Products, which account for 70% of the cold-rolled products manufactured in my department.
[Lee Jin-soo] I began my career at POSCO in 1993 working as a sales engineer in Indonesia and Singapore. After that, I moved to Gwangyang Steelworks where I was in charge of establishing technology strategies for automotive steel sheets as well as producing Tailor Welded Blanks (TWB). More recently, I guided the completion of Thailand CGL in 2016 to help POSCO be more competitive in the SE Asian market. Now, I serve as the corporate head of POSCO-Thailand Coated Steel (TCS).

“POSCO’s mission in 2009: Develop the best, most advanced automotive steel solutions that only POSCO can produce.”

Q2. Starting is often the most difficult step and we have sure faced some hurdles along the way. Can you tell us about the some of the problems you faced while developing automotive steel products?

[Shin Seung-cheol] Sure, in 2009, our team’s goal in the rolling sector was to ensure the productivity and quality of the World Premium Products. In the annealing process of the cold rolling sector of the Gwangyang Steelworks, I was told to make “the best automotive steel plates.” However, compared to other products, automotive steel plates demand a much higher quality than other products, and our equipment was outdated and rundown, making it almost impossible to create the flawless steel plates that were required. Achieving both high quality and continuous mass production required a new level of innovation.

[Cho Byeong-ho] When I was at the cold rolling mill, we were facing challenges from both domestic and foreign competitors. So, we streamlined old equipment and increased production of the World Premium Products such as automobile steel plates and high-grade steel. However, there were many problems. At one point, the cold rolled steel kept falling off before reaching the rolling process.

Q3. There’s a famous quote that says ‘Patience is bitter, but its fruit is sweet.’ Does this make sense when you think about the work you accomplished in developing advanced automotive steel for POSCO?

[Shin Seung-cheol] Yes, that quote rings true for our team. After three years of testing the steel surface quality and improving the Continuous Annealing Line (CAL) facility, we eventually succeeded in securing high-quality automotive steel plates. Strict management standards along with systematic & rigorous product inspections from the customer’s point of view were also put in place in order to ensure that the products met the client’s needs.

[Cho Byeong-ho] When we couldn’t keep the steel from falling off before reaching the rolling process, we decided to visit the cold-rolling mill at Pohang Steelworks to help us find a solution. There, we worked on solving the problems with a small-scale laser welding team and we got support from maintenance experts. With proper facility training and data improvements, the 2nd cold rolling mill was ultimately able to work consistently.

“Now, it’s more than a mission. We will be the leading automotive steelmaker in Asia.”

[Lee Jin-soo] Thanks to our team’s endless efforts, POSCO was able to succeed in producing highly competitive automotive steel. POSCO provides around 150,000 – 200,000 tons of galvanized steel plates to Thailand every year. But we did not want to be #1 only in Korea; we wanted to have a stronger presence in the growing Thai market as well.

In order to expand our presence in the Thai market and provide stable supplies to existing clients, we differentiated ourselves from competitors through the quality of GI products for home appliances and painting – areas where we held a competitive advantage.

Q4. Your passion for finding innovative solutions, as well as your success at POSCO, is impressive. What are some of the most meaningful accomplishments you have made at POSCO?  

[Shin Seung-cheol] I was very grateful to be named as one of the POSCO Masters of Korea in 2016. This honor is reserved not only for the best field technicians with the highest levels of skill, but also for those who help their coworkers by sharing their expertise. I was happy to be acknowledged for my own skills as well as my efforts to help others.

[Lee Jin-soo] I am proud that I was able to be a part of the efforts to bring two manufacturing centers in Mexico online. POSCO-MPPC plant 1 & plant 2 were POSCO’s very first overseas construction sites and were very important for the future of POSCO’s global growth. And recently, getting the chance to guide Thailand CGL to its opening was very important for POSCO and very meaningful for me.

[Cho Byeong-ho] When I started, I believed that it would be really helpful to gain knowledge about each part of the steelmaking process. As a result, I taught myself about each step and acquired certificates in various fields including ‘Master of Craftsman Welding’ and ‘Master Craftsman of Rolling.’ This allowed me to do more specialized work for POSCO and for its automotive steel solutions.

Q5. Lastly, please share with us your vision moving forward.

[Shin Seung-cheol] While I’m somewhat confident in my operational skills after 34 years on the job, I still want to study more. I want to learn more about engineering theory and process development. My dream is to become the best possible technician I can be.

[Cho Byeong-ho] Moving forward, I want to continue the work to boost our equipment capacity while also improving our technology so that we can continue to produce the best World Premium Products.

[Lee Jin-soo] At Thailand CGL, we want to move forward to provide manufacturing technologies, such as mold technology and automotive steel sheet buying channels, to small local companies. This will allow POSCO to expand its contract base into a solution marketing system.

The advancements made in POSCO’s advanced automotive steel are driven by people like Shin Seung-chel, Cho Byeong-ho, and Lee Jin-soo. Without their determination, intelligence, and innovative thinking, POSCO could not be where it is today.

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Advancements in electric cars, autonomous driving, car connectivity, and AI were on full display. Nissan and BMW unveiled plans to use Microsoft’s personal assistant technology, Cortana, with their cars. Honda became the first major manufacturer to develop an electric concept car specifically designed for ride-sharing. And as for self-driving cars – Nissan announced it would bring autonomous driving support to its Leaf electric car, Hyundai introduced one that would be affordable enough for the masses, and Audi announced a partnership with Nvidia to bring self-driving cars to market by 2020.

With all of the focus on electric cars and autonomous driving, it is easy to forget the basic building blocks that are needed to make these cars a reality. As Toyota Research Institute CEO Gill Pratt noted at CES, “Historically humans have zero tolerance of death by machine,” and for further adoption by the public, safety must be reinforced in autonomous vehicles. Increased safety in cars often goes hand-in-hand with heavier materials that can withstand more pressure. However, the push for more fuel efficient electric cars is pushing the industry to build with more lightweight components.

Car manufacturers are working to find the right balance between strength, weight, and price. The EPA has estimated that reducing a vehicle’s weight by 45kg (100lbs) will improve fuel efficiency by 1%, and while more lightweight materials do exist in aluminum and magnesium, they are often too cost-prohibitive for general use.

POSCO Body Concept Electric Vehicle

POSCO’s PBC-EV is both safe and lightweight

On this front, POSCO has been working to develop solutions for car manufacturers. The PBC-EV, or POSCO Body Concept Electric Vehicle, is one product of that research as POSCO sought to create a lighter car with the same strength and safety that is expected in today’s modern car market. POSCO focused on two main points when developing this lightweight car body. The first was the application of a combination of POSCO’s most advanced steels including TRIP, PosMCT950E, and PosMCT980B. Secondly, POSCO optimized existing construction methods and worked to introduce new techniques in order to both lighten and strengthen the body of the automobile. With its PBC-EV, POSCO was able to reduce weight by 26% while still maintaining the highest levels of body strength.

Magnesium technology

POSCO materials were used in the design of Renault’s EOLAB concept car

Many in the auto industry are setting their sights on magnesium as the future of car manufacturing. Magnesium can be easily molded and it is both lightweight and strong. Due to its high price, car makers have not fully embraced the move to magnesium yet, but POSCO is already preparing for this probability. Last month, POSCO’s World Premium Materials (WPM) – Magnesium Business Division organized a seminar with industry experts and automotive engineering students to discuss the future of magnesium in car manufacturing. Experts in magnesium, molding, bonding, and surface treatment were invited to speak about the application of magnesium technology in automobiles and students gave presentations on their own experience developing race cars.

Even though cars have been around since the late 19^th century, new ideas continue to force the industry to adapt and change. And whether it is optimizing existing manufacturing processes or working to utilize technologies for the future, POSCO remains committed to finding innovations in the auto industry.

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POSCO’s seminar on magnesium technology was attended by students who built winning race cars at an annual competition held by the Korean Society of Automotive Engineers.

Students gave presentations on their own car development process while sharing their technical expertise. In addition, experts in magnesium, molding, bonding, and surface treatment were invited to speak about the application of magnesium technology in automobiles. Following the presentations, further discussions were held by the organizers of the event and the race car production advisors on automotive engineering and magnesium technology.

A race car built by students from Kookmin University.

POSCO used the seminar to gather the opinions of students and to learn more about the use of magnesium in automobiles as it is planning to steadily expand its technical support for the application of magnesium technology in automotive engineering.

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One of our most exciting new products is PossSD – which stands for Super Ductile Duplex, a kind of duplex stainless steel. Duplex steel combines two types of stainless steel – austenitic and ferritic – to maximize the strengths and minimize the weakness of each.

The idea has been around since the 1920s, but only recently has technology and knowhow reached the point to make this a practical commercial product. And now, POSCO’s PossSD is one of the most exciting types of duplex steel to hit the market.

Combining Two Steels to Create an Innovative Alternative

Austenitic and ferritic steels are both considered fairly easy to make and fabricate, but both also possess certain drawbacks. Austenitic steels make up about 70 percent of all stainless steel production. These are low-strength steels that have low resistance to stress corrosion cracking, plus their high nickel content can make them more expensive.

Ferritic steel, on the other hand, have stronger engineering properties, but less resistance to corrosion. They use less nickel than austenitic steel, so tend to be cheaper.

By combining those two types of steel together, however, duplex steel is tougher and more ductile than ferritic grades, and are about twice as strong as both types of steel. It is also cheaper, while possessing stronger corrosion resistance.

Taking Duplex Steel to a Higher Level

PossSD takes those advantages to the next level. It is a high-alloy steel that features high corrosion resistance in severe marine, chloride and acid environments. It also has very limited nickel content, so is cost competitive. And the strip-casting process lets POSCO make PossSD with a higher nitrogen content.

Higher chromium and nitrogen make PossSD strongly anti-corrosive, and its strength gives PossSD anti-dent properties. But at the same time, enhanced ductility and elongation make PossSD highly formable. It also has excellent anti-fatigue properties.

Because PossSD is ferritic and austenitic, it is also magnetic, and therefore is induction heatable and good for cookware.

The strength of PossSD allows products that use it to be thinner and safer. And its high corrosion and wear resistance mean it is very useful for hoppers and tanks. It is an excellent floor material for refrigerated containers, with higher wear resistance and lighter weight.

High-strength enhances its safety factors, making it a good choice for safety items like fire doors and emergency ladders.

PossSD is also a hygienic steel, so it is also appropriate for water distribution and piping. And its strength means water ring thickness can be reduced 20 percent.

Finally, PossSD is versatile, and with proper treatment it can be employed for a wide array of other uses, like curtain walls, the exterior parts of electric battery chargers and artworks.

Stronger, Lighter, Cheaper

The many advantages of PossSD led to this POSCO World Premium product winning a World Steel Association Steelie Award in 2015 for being the Innovation of the Year.

In short, POSCO’s PossSD is an excellent example of what POSCO’s World Premium steel can be. Stronger, lighter, cheaper than regular steel options, PossSD is a major step forward for stainless steel.

To learn more about PossSD, be sure to check out this video.

PossSD, POSCO’s ‘Super’ Stainless Steel, to be Used in Development of Residential Escape Ladders

POSCO’s UL700 Steel Pipe Is a Big Boost for Scaffolding

PosCoZy Floor Plates Creates Quieter Apartments

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