Using publicly available data, Corporate Knights examined about 4,000 companies with a market value of at least $2 billion. Their methodology looked at 14 key performance indicators (KPIs) covering environmental, social, and financial performance metrics. KPIs included energy efficiency, greenhouse gas emissions management, atmospheric environment management, water resources management, waste recycling, innovation capacity, tax rates, wage disparities, pension fund ratios, safety performances, turnover rates, diversity, and links between sustainability performance and compensation.

POSCO received high marks for its safety performance, water efficiency, waste recycling, and the levels of average employee wages compared to CEOs.

POSCO ranked first among other Korean companies with Shinhan Financial Group (40th) and LG Electronics (65th) also being listed on The Global 100. German conglomerate Siemens topped the list, followed by Storebrand ASA (Norway) and Cisco Systems Inc (USA). Johnson & Johnson placed 8th, Coca-Cola 48^th, and GE 99^th (see the full list).

These evaluations are significant in that they recognized POSCO’s efforts to secure a sustainable future despite increasingly difficult market conditions such as global over supply of steel, sluggish demand, and strengthening trade regulations.

In addition to The Global 100, POSCO has been listed on the SAM-Dow Jones Sustainability Index for 12 straight years (2005-2016), and World Steel Dynamics (WSD) has named POSCO the most competitive steelmaker in the world for seven years running since 2010.

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The MOU-signing ceremony was held on October 17 in the POSCO magnesium plate factory in the Haeryong Industrial Complex in Suncheon. Approximately 20 people were present, including National Assembly member Jeonghyeon Lee, the governor of Jeolla-namdo Nakyeon Lee, the mayor of Suncheon Choonghoon Cho and POSCO CEO Ohjoon Kwon.

POSCO and Suncheon, Jeolla-namdo entered into an MOU on October 17 to expand the number of magnesium production facilities. Third from the left, National Assembly member Jeonghyeon Lee, governor of Jeolla-namdo Nakyeon Lee, POSCO CEO Ohjoon Kwon and the mayor of Suncheon Choonghoon Cho.

According to this MOU, POSCO and Suncheon will join forces in the purchase of a lot and the expansion of the facilities for producing automotive wide magnesium plates. They will also work side by side in transforming the Haeryong Industrial Complex into a light materials industry cluster by fostering and actively supporting magnesium-related SMEs.

Magnesium is in the spotlight as an ultra-light material that is lighter than aluminum and steel. As environment-friendly issues have emerged in the automotive industry, POSCO has focused on developments with magnesium, as it can be more effective than aluminum in terms of weight reduction. POSCO completed the magnesium plate factory in Suncheon in July 2007, and has since been producing and supplying alloy plates to domestic and overseas automakers and electronics companies.

POSCO’s magnesium was applied to Renault’s concept car ‘EOLAB,’ which was unveiled at the Paris Motor Show in October 2014. The roof of a standard car weights about 10kg, but the roof of ‘EOLAB’, which is made from POSCO’s magnesium plates, weighs about 4.5kg, and has accordingly attracted public attention.

POSCO is planning to capitalize on this expansion to preempt the anticipated increasing demand for magnesium for foreign automobiles, and become the first to make a move in the global market.

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Iron Age

During the Iron Age, semi-solid steel, produced by simply reducing iron ore, was forged to create farm implements and weapons. It was not until the mid-14th century that liquid iron was extracted directly from iron ore. This became possible because high temperatures were reached with furnace bellows operated by waterwheels.

For over 3,000 years, until replaced by steel after 1870, iron formed the material basis of human civilization in Europe, Asia and Africa.

The Industrial Revolution in England

In the late 18th century, during the Industrial Revolution in England, the invention of the steam engine by James Watt enabled the blasting of air into the blast furnace with a machine. This made the mass production of iron possible.

While the iron making process had been centered on the coke blast furnace for 300 years, the steel production process has made leaps and bounds in the past 160 years.

Around this time, the S-Martin open hearth furnace appeared. Though it required an external heat source and its productivity was relatively low, it permitted a wide range of iron resources and allowed easy control of the temperature and composition of molten steel.

The S-Martin open hearth furnace became the predominant method of producing liquid steel for about a century, until the appearance of basic oxygen steelmaking in the 1950s.

Basic Oxygen Steelmaking in the 1950s

Basic oxygen steelmaking and continuous casting processes developed in the early 1950s are considered the most innovative technologies in the history of the steel industry. The two processes replaced the open hearth furnace and the slabbing and blooming process in integrated steel mills.

The integrated steel mills have many advantages such as high productivity, cost competitiveness and the ability to produce a wide range of high-quality steel products. However, they require large-scale facility groups with complex process configurations across a large land area. Other disadvantages include the generation of large quantities of environmental pollutants from the use of fossil fuels.

In the late 1980s, major global steel companies and research institutes led research and development activities to address the disadvantages of basic oxygen steelmaking in integrated steel mills. The focus was placed on developing new processes to replace the existing blast furnace in iron making.

POSCO’s FINEX technology

FINEX technology is one such new development. POSCO began researching FINEX technology in 1992, and successfully launched a pilot plant with an annual production capacity of 600,000 tons in 2003. At present, two FINEX facilities are in operation at POSCO Pohang Steelworks. One plant, launched in 2007, has an annual capacity of 1.5 million tons, and the other, opened in 2014, has an annual capacity of 2 million tons.

POSCO also plans to build another FINEX technology facility soon, but this time it will be located outside of Korea. POSCO recently signed a memorandum of agreement with Iran to build a FINEX technology steel mill in the Middle East country.

FINEX combines the iron making processes of sintering, coke making and blast furnace into one process. It allows the direct use of low-grade fine ore and coal without preliminary processing. This process dramatically reduces the generation of air pollutants such as SOx, NOx and dust.

The changing environment of the global steel industry

The attention of global steel companies is now focused on reducing greenhouse gas emissions and adjusting to the stricter global regulations on air pollution. These regulations are expected to expedite the restructuring of steel production facilities.

As a result, environment-friendly and innovative iron making technologies are expected to become commercialized soon. This would enable the use of low-grade raw materials across the globe. With the development and expanded utilization of new clean energy sources, steel production will depend increasingly on the utilization of economically produced steel, such as Direct Reduced Iron.

The future direction of the steel production process

According to the report, the steel production processes of the global steel industry are expected to move in three directions. First, large-scale seaside integrated steel works will continue to be highly competitive. Second, the expected increase in steel scrap availability and low-cost production of Direct Reduced Iron will increase the economic feasibility of procuring iron resources.

Third, inland regions in China, India and other large continent countries who are at a geographical disadvantage are expected to build simplified, compact, environment-friendly alternatives to outdated blast furnaces.

The three steel production processes are expected to coexist to produce low-grade raw materials and secure a smooth supply of steel products in inland regions where demand is forecasted to grow. This is expected to bring balanced and continuous growth for the global steel industry.

The steel industry has evolved and developed throughout history and thanks to the superior characteristics of steel materials and economic mass production it will continue to be an integral part of our lives for many more millennia to come.

Related Link:

In Southeast Asia, Surging Imports Lead to Rising Trade Barriers

The Future of Manufacturing in Korea

China’s Era of New Normal and its Implications on the Steel Industry

The Myth and Reality of Global Steel Overcapacity

POSRI Releases First Edition of Bi-Annual English Journal “Asian Steel Watch”

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Both individuals and corporations must become more environmentally responsible, being mindful of the levels of waste water, trash and emissions produced both at home and in the office. Considering these factors in the architectural designs of the future, we can ensure a healthy and sustainable planet. Yet, a number of buildings are a step ahead and have already incorporated sustainability into their own designs, setting the precedent for future architectural endeavors. On this World Environment Day, let’s take a look at a few of them.

Northeast Asia Trade Tower (NEATT)

Standing 68 stories tall, the Northeast Asia Trade Tower in Songdo International Business District, Incheon, is the tallest structure in South Korea. It is also the crown jewel of POSCO’s leading innovative technology, utilizing revolutionary features such as a 3D exterior design, a seismic force resisting system and high level security and anti-disaster measures.

Yet, NEATT, which is a mix of office spaces, a luxury hotel, serviced residences and retail stores, also serves as a model of sustainable design strategies, carefully balancing energy conservation, increased indoor environmental quality and occupant comfort. Its range of passive design strategies, which include daylighting, natural ventilation and energy efficient HVAC systems, as well as its eco-friendly, non-toxic construction materials, have ensured that the skyscraper is not only friendly to the environment, but to its human inhabitants, too.

Monte Rosa Hut

Perched above the skiing mecca of Zermatt, Switzerland, the Monte Rosa Hut is a lodging space used by hikers in route to the summit of the same name on icy glacier treks. The five-story crystal-shaped building was constructed on stainless-steel foundations with a wooden spiral interior covered by a silver aluminum shell. During its construction, materials and workers were transported by train to Zermatt, requiring 3,000 helicopter trips.

The hut uses solar power for about 90 percent of its energy and heat requirements. Excess energy is stored in valve-regulated lead-acid accumulators, which ensure power in all kinds of weather. Large windows allow the sun to heat air inside the building, and melting glaciers in the area provide the lodge’s water supply, which is collected and stored in a nearby reservoir. (Image from http://bit.ly/1AJVsUa)

Meera Sky Garden

Perhaps no other building on this list is as one with nature as the Meera Sky Garden in Sentosa, Singapore. This eye-catching, eco-friendly home was designed by Guz Architects, and it overlooks the island’s harbor.

Divided into four distinctive floors, each of which is covered with a grass roof, the home appears as if it is four separate houses, yet is still seamlessly connected by a natural element. Not only are these garden-like spaces visually pleasing, but the grassy roofs help to keep the interior temperatures at a minimum, saving energy. (Image from http://bit.ly/1ddeBTx)

Pixel

While Pixel’s chaotic, colorful exterior is the first thing one might notice about the small office building in Melbourne, Australia, its sustainable design is what really makes it noteworthy. Some of its design innovations include a panel shade system that allows natural light into the office, while at the same time, reducing glare and heat. More impressively, Pixel utilizes wind turbines to generate its own electricity.

As Australia’s first carbon neutral office building, Pixel was also the first building to ever be granted a perfect score on the country’s Green Star sustainability rating system. (Image from http://bit.ly/1JoxIpS)

Bank of America

When the Bank of America building was erected in Manhattan, New York in 2009, it set the standard for all environmentally responsible buildings to come. Its base-to-roof insulating glass external structure enhances heat insulation while creating a large source of natural light, while the building’s extensive solar panels produce energy for the building.

And the Bank of America knows how to save water. Its greywater system collects and recycles waste from sinks and water fountains into the refrigeration system, while its catchment systems collect and save around 45 inches of rain that fall on the site each year. Such sustainable features landed the skyscraper the LEED Platinum Award, the highest level of the internationally recognized green building rating system.

The Change Initiative

In a city that is seemingly ever under construction, The Change Initiative (TCI), an eco-lifestyle shop that stocks everything from environmentally-conscious detergent to greywater recycling tools, sets itself apart from other buildings in Dubai.

Often noted as one of the most sustainable commercial buildings in the world, the majority of the materials used to create TCI are recyclable. The roof is coated with heat-reflective paint and is embellished with solar panels that generate about 40 percent of the building’s energy, while the building’s outer structure has three times the insulation of the average building. (Image from Gundeep Singh) 

For more information about current worldwide green initiatives and for ways that you can “consume with care,” check out the World Environment Day website.

The primary reason for the ‘Age of Iron’ to continue further is in the nature of iron (Fe). Iron is highly stable because it holds the highest bond energy compared to all other artificially-created elements. Also, it is much more economic than other metals or advanced materials because iron is the second most abundant metal after aluminum. Since it is flexible to transform into alloys by various purposes, it is can be applied in almost every industry field.

Second, demand for industrialization and urbanization is another factor that continues the ‘Age of Iron’. Realistically, it is hard to say that its growth will pause or recess at a global level. Therefore, the growth of the industry and economy will still remain as a dominative and indispensable paradigm.

Certainly, as the industry and economy develops, the demand for iron could relatively show less increase. However, almost all industries including the manufacturing and energy sector will extend their demands for steel and other fields such as construction business will expand their alternative and steel demands. As China and India, which officially have entered the developmental stage, Southeast Asia, Middle East area and even Africa go through urbanization and industrialization, the global scale of steel demands could increase largely in the future.

Lastly, the steel industry itself is transforming into an eco-friendly and energy-saving business. Coming from nature and returning to the nature, iron is a highly recyclable material. However, energy-guzzling activities and emissions of environmental pollutants occur while processing iron to fulfill the needs of human-beings. Nevertheless, these side effects are even decreasing as technology and endeavor develop further.

More Beneficial to Human-beings and Nature
The continuation of the ‘Age of Iron’ does not necessarily mean that there will be no perceptible change. Like all things, iron and the steel industry are experiencing their own evolution. In fact, it is not only about the evolution of producing and processing method. The relationship between iron and human-beings is also going through a transformation. In other words, iron is evolving into a better direction for human-beings, nature and the earth.

High-strength steel sheet aptly supports this view. High in tension and strength, the high-strength steel sheet is five times stronger than regular steel sheet of same thickness. The high-strength steel sheet is environmental-friendly because it increases fuel efficiency by reducing the vehicle’s weight. Also, it is capable of saving human life through its high collision safety that stems from its exceptionally high strength.

Electrical steel sheet is another example that minimizes energy loss and preserves the environment. As numerous motors are used in an automobile, a motor with good energy efficiency and magnetic characteristic is required for maximized energy use in a limited energy source and space; the electrical steel sheet precisely fulfills this required condition.

Despite the fact that iron is an environment-friendly material, it is undeniable that toxic substance has been coated or added in order to secure or enhance the special functions of steel sheets. However, lately there has been a wide use of eco-friendly steel sheets which do not contain the harmful substance but highlight the environment-friendly features.

As shown, iron has been evolving into a direction of benefiting human-beings while minimizing the damages on nature and eco-system. Also, it has been used most fundamentally and widely among all other materials, and this is expected to continue in the future. Especially, iron will maintain its pinnacle in the fields of marine and aerospace, the prospective categories of the most rapid developmental pace.

New Product Research and Development for the ‘Future of Iron’
Future is a subject to be pioneered rather than to be given. It is important to predict coming days of the ‘Age of Iron’, but it is much more crucial to figure out the general picture of the ‘Age of Iron’ that we create for the future.

Firstly, when we consider the technical aspect, it took about 25-50 years to discover a technical change that had significant influence on the steel industry. For instance, electricity was developed 100 years ago, and open-hearth furnace which was vanished in the late 1980s in the United States as basic oxygen furnace was invented in the 1950s. Moreover, continuous casting technology, which was developed in 1960s, has improved in its technological maturity, but is still in the process for completion.

Fundamentally, it is inevitable for the prospective iron and steel industry to move forward in a direction for the humans, the society, and the earth. In addition, the industry should advance with a direction that maintains a position of steel known for its diverse functions and economic efficiency.

Recently, main subjects of technology in the steel industry are cost reduction and high productivity, simplification of production, utilization of economical materials, new product development technology, and etc. Even though there are still financial and environmental issues in the way, there are endless possibilities in steel manufacturing and technology development opportunities related to the steel industry. In fact, these possibilities are tried in action every day.

The future of iron and the steel industry is promising when these useful features are expanded. Only those steel companies, whom maneuver their directions into researching and developing iron and steel products in corresponding ways, will be qualified to be the leader of the prospective steel industry.

Please keep your eyes open for POSCO, who is striving to be the leader of the future iron and steel industry through its futuristic perspectives on iron and steel products!

The POSCO Green Building, which was completed in 1 year and 2 months after starting construction last September, consists of an office building (5 floors, B1~4F, total square of 5571㎡), joint housing building of 5 units (3 floors), 4 modular home units and a PR exhibition hall.

 The POSCO Green Building was carried out as part of the Ministry of Land, Infrastructure and Transport R&D project, ‘Research on spreading green technology to market demand-based new buildings’ which aims to present a new approach to domestic green building construction, and considered environment-friendly and low energy in the processes from design and construction to operation and disposal.

 More than 100 green technologies including solar power, geothermal air-conditioning and heating, vacuum outsulation, and ICT (Information Communication Technology) are applied to the building, optimizing energy performance and saving energy usage from 30 to 100% compared to existing buildings. Further, it is an environment-friendly building where approximately 35% of the energy required by the building is self-generated utilizing new renewable energy.

 Energy reduction materials developed by POSCO were also greatly used. In the front of the building, a steel curtain wall, which boasts the best domestic insulation performance, was installed, generating insulation effects of more than double existing aluminum curtain walls, while vacuum outsulation was applied to the exterior walls to increase heat retention ability.

 In addition, self-cleaning steel plates were applied to the building’s exterior walls, allowing for the overall exterior to maintain a clean appearance while pollutants can be removed by rainwater. This steel plate has a 30% longer lifecycle than regular steel plates. High corrosion-resistant alloy gilt steel plates were used in the facilities to save rainwater, and high manganese steel that reduces vibration was experimentally applied for the first time to the sound-blocking floor to solve noise between floors.

 The Green Building also considers the environment in disposal on top of construction. Slag from production of melted iron was incorporated in place of cement, an important construction material, to reduce energy necessary to produce the cement. Reuse steel structure methods were applied to the steel frame for the building. Dampers were installed to absorb vibration to prevent shifts from external shocks such as earthquakes, and supplementary materials were combined using bolts so they can be reused once the building’s lifecycle ends.

 Further, a Building Energy Management System (BEMS), which controls air-conditioning & heating and OLED lighting automatically by analyzing the production-delivery-consumption process of energy and sensing temperature differences caused by sunlight, is applied to improve energy efficiency and allow intelligent energy management.

 POSCO plans to utilize the Green Building as a model to spread energy-reduction type homes.

 The POSCOMAGIC R&D Center, which focuses on non-ferrous mineral research, will be also established in the Green Building, consistently carrying out industry-academia research linked with POSCO’s non-ferrous business and developing competitive new environment-friendly materials

 A showroom will also be made available in the PR exhibition hall, marketing environment-friendly steel construction materials applied to the Green Building, while the design-construction-energy management system operation experience of the Green Building will be proactively utilized for the green construction industry both domestically and internationally, contributing to the creation of new demand in environment-friendly steel construction materials. In addition, the Green Building will be open to the public and give an opportunity to meet new materials and steel construction materials applied in the building.

In 2010, POSCO and MCS Group started examining this project, and in 2012, Hatch, a Canadian CTL plant engineering company, suggested the project’s business feasibility. As a result, POSCO and MCS Group established Baganuur Energy Corporation as a joint venture to start up the business base for clean energy in Mongolia.

The clean energy project aims to produce 100,000 tons of DME and 450,000 tons of diesel oil per year once completed. The Mongolian government agreed on the importance of the project in terms of both securing stable energy resources and developing environment-friendly power generating facilities, so it is providing its full support for the project’s successful outcome.

The rapid increase of fossil fuels has dramatically damaged Mongolia’s environment for the past few years. According the World Bank, Ulan Bator’s air pollution index between 2008 and 2009 was 2.8 times higher than Guangzhou, China and 5.6 times worse than San Diego, the U.S. With the project, POSCO targets to save Mongolia’s environment, and secure its foothold in clean energy development for expanding the firm’s global energy business.

POSCO is also building a clean coal synthetic natural gas plant with 500,000 tons of annual production capacity in Gwangyang and it is expected to enter into full operation in 2014. A 75% of the total process of the plant is similar to the Mongolia’s CTL project. Based on its years of experiences for coal processing, energy development technologies and operation management, POSCO will continue staying a jump ahead for the global clean energy plant business.

Lakshmi Mittal (ArcelorMittal), Ratan Tata (Tata Group), Daneil DiMicco (Nucor), Jorge Gerdau Johannpeter (Gerdau) and Gianfelice Rocca (Techint Group) were successive laureates since the award was established in 1991.

AIST is one of the top academic research organizations with highly appreciated reputation around the globe. AIST said CEO Chung was recognized as a visionary for the global steel industry for his knowledge of steel operations, dedication to safety, awareness to secure raw materials, enthusiasm to incorporate new technologies, foresight to expand POSCO’s foreign presence, and prudent strategy to promote mutual growth with steel-consuming industries.

In the ceremony joined by John Surman, CEO of U.S. Steel, and other major steelmakers, Chung accepted the honor and praised AIST’s diverse programs for the past 20 years, contributing to development and promotion of steelmaking technologies. He addressed that POSCO is putting all its efforts for developing cutting edge technologies to overcome rises in raw material prices, climate change and lack of energy resources. POSCO is also making a great deal of investments in R&D for environment-friendly and economic steel production, he added.

At the press conference after the awarding ceremony, Iron & Steel Technology, Steel Times International, Steel & Metallurgy, Industrial Info Resources, Platts, American Metal Market and other international steel and industry media packed the conference room to hear what the CEO was to share.

For the media session, CEO Chung introduced POSIT (POSCO Innovative Steelmaking Technology), a new technology for securing POSCO’s future competence, and explained about the backdrop of POSCO’s competitiveness. He also illustrated Smart Workplace System and how it was affiliated with the creative production efficiency of POSCO. The firm’s POSCO-Scholarship was also presented as well in order to show the case studies of finding and cultivating highly talented personnel.

For students and newcomers in the steelmaking industry, the CEO advised them to have a dream, a vision and an active passion in their journey towards the bright future. In doing so, Chung said, anyone can become a CEO and a winner with the spirit to overcome hardships and difficulties with optimism in mind and ownership of their own tasks.