▲ Click the image and find out more about POSCO overseas affiliates.

However, with closed borders and flights canceled, how could POSCO deliver face masks to its overseas subsidiaries? POSCO Newsroom looked into the details of this seemingly impossible mission.

CASE1. Indonesia
POSCO Group shipped 100,000 USD worth of COVID-19 test kits and relief supplies as well as 900,000 USD worth of face masks to Indonesia where PT.Krakatau POSCO (PT.KP) is located. The supplies helped in quarantine activities carried out by local communities and governments. The employees at PT.KP joined forces and took preventive measures against the COVID-19. As a result, PT.KP was able to continuously operate its plant without closing its facilities at all.

Irfan Afandi, the chairman of the labor union of PT.KP, expressed his thanks to POSCO CEO Jeong-Woo Choi through a letter describing how the face masks from the headquarter were well-distributed to all PT.KP employees and also to partner companies. He on behalf of all employees at PT.KP, also mentioned that all employees were deeply moved because the company supplied masks for their family members as well.

▲ The letter from Irfan Afandi (the chairman of the labor union of PT.KP)

Other than PT.KP, there are a total of nine POSCO Group companies expanding their businesses in Indonesia, including POSCO International’s PT. Bio Inti Agrindo (Palm oil farm) and PT.POSCO-Indonesia Inti (PT.PII), a Jakarta-based trading company.

The first death from COVID-19 in Brazil occurred in March. At that time, POSCO headquarters in Korea had already decided to provide face masks to all employees working at local business entities, business partners, and contractors, as well as all of their family members, and was striving to secure the supplies.

CASE2. Brazil
Must reach faster than the virus!
The first death from COVID-19 in Brazil occurred in March. At that time, POSCO headquarters in Korea had already decided to provide face masks to all employees and families, including group companies, partners, and joint ventures, as well as overseas subsidiaries, and was focusing on securing the supplies.

It was a race against time. With COVID-19 spreading rapidly since the beginning of April, acquiring new face masks was a difficult task, and employees in Brazil were using disposable masks for a week. While POSCO and POSCO ICT run offices in Rio de Janeiro and Sao Paulo respectively, many employees from POSCO, POSCO E&C, and POSCO ICT are working at CSP(Companhia Siderúrgica do Pecém), a joint steel company in Brazil. POSCO secured more than 10,000 face masks for all employees and their family members including those from Dongkuk Steel, a business partner in CSP, and shipped them via air on April 14.

The masks arrived at Miami Airport, U.S. on April 15, but faced another challenge. All flights to Brazil had been canceled. POSCO decided to deliver them by land transport — traveling 14.887 km from Miami to Fortaleza, Brazil.

Transporting 14,887 km: from Miami to Fortaleza
To safely transport the mask, POSCO quickly contacted the most reliable company in the region. The specially packed face masks traveled through Miami, Panama, and Colombia, and reached its final destination, Fortaleza. After going through three days of the complicated customs clearance process, they were finally handed over to CSP on April 25. Three days after the arrival of the masks, the number of deaths in Brazil reached 5,000 and exceeded 10,000 on May 9. As of June 2, the toll stands at 30,000.

A CSP employee, who received the mask, expressed his gratitude on PBN, POSCO’s internal broadcasting station. “We appreciate all the efforts POSCO has put into providing the face masks — not just for the employees but also for the whole family.”, he said.

CASE3. India
New confirmed case occurs at airport customs, delivery delayed for 15 days.
In India, strong preventive measures were being taken due to the spread of COVID-19, including the closure of the country. In fact economic activity was paralyzed across the country. The number of airline flights decreased dramatically, including road closures, making it difficult to secure flights. POSCO managed to secure a flight but faced another challenge — customs. The multi-use face masks needed a guarantee from the local government, stating that they were relief goods. POSCO resolved the issue by closely cooperating with the customs and local government. Just when all seemed to go fine, a new COVID-19 confirmed case occurred in the airport customs. The entire airport was shut down, and the face masks were retained there for 15 days. After overcoming these series of challenges, the airport was reopened, and delivery resumed. The face masks arrived safely to the Indian subsidiary on May 8.

CASE4. Europe
Drilling through closed borders, into Europe.
The virus is on a rapid spread in Europe, especially in Italy and Spain. In the case of Italy, all borders of the country were closed, and all businesses faced temporary closure, except for essential industries. In this situation, POSCO-ITPC, a local processing center, urgently requested face masks. Although all borders were closed, fortunately, cargo planes from Korea were operated once a week. After several requests, POSCO succeeded in shipping the goods to Italy.

“Getting certification is nearly impossible if there’s no record of export to Europe.”
For other European countries, getting certification required for customs clearance was a major issue. The face masks were already exported to the U.S. and Hong Kong, but it had no record of exports to Europe, making it difficult to get a certification. It seemed that the procedure would take several months, However, acknowledging the urgent matter, the local customs finally accepted POSCO’s request in the end. At last, the face masks were delivered to various parts of Europe, including Germany, Belgium, France, Poland, and Slovakia.

What kind of face masks were delivered to POSCO Overseas employees?

▲ Multi-use face masks that were shipped to the POSCO E&C office in Abu Dhabi, UAE

Under the pharmaceutical law, face masks are designated as non-medical products and thus approved by the Ministry of Food and Drug Safety (MFDS). There are two types of face masks: a surgical mask is one and respirators (anti-dust masks) the other. The MFDS restricted exports of two types of masks that have a KF certification (respirators), so POSCO secured multi-use masks that are as efficient as KF94 masks and distributed them to all employees both in Korea and abroad. The multi-use masks made with new copper materials have an antibacterial effect. They can be reused up to three months, and are able to retain its effectiveness.

CASE5. America
The confirmed case of a dispatched employee & the rapid spread of COVID-19
In March, POSCO-America, POSCO’s business office in the U.S., requested for multi-use masks. It reported that a dispatched employee working at POSCO-AAPC, a local processing center, was confirmed of the virus, and two more employees at POSCO-America and POSCO-Mexico were being tested. There was a great deal of difficulty in securing a flight to the United States, but POSCO accomplished the task once again. On March 29, the masks were sent on a night flight and arrived at Atlanta airport the next day. After going through customs clearance, the masks were distributed to Atlanta, Washington, Houston, Detroit, and Mexico City.

In March, POSCO-America also donated eight devices for video calling to the Charlie Norwood VA Medical Center (Fisher House), where veterans who participated in the Korean War reside, in Augusta, Georgia. (See article)

Take a look at three of the ways transportation is restructuring itself for faster, more sustainable travel. Some are closer to realization than others, but all of them are changing the way we think about movement. When realized, all of these ideas will have an impact far beyond what we can see now.

The Hyperloop – Fast & Frictionless

An Idea by Elon Musk

In 2013, Elon Musk came up with the idea for the Hyperloop as he grew frustrated with the high-speed rail being developed in California at that time. He called it “both one of the most expensive per mile and one of the slowest in the world.” Musk said, “It would be great to have an alternative to flying or driving, but obviously only if it is actually better than flying or driving.”

He imagined capsules, zooming by at speeds faster than any train or plane, that would allow him to get to San Francisco from LA in 35 minutes. The basic concept was that the capsules would float through partially evacuated steel tubes propelled by fans and electromagnets. Because there would be less friction from air and rails, there could be significant increases in speed and durability, while decreasing reliance on fuel at the same time.

Workers install Hyperloop’s stator blocks at our test and development site in North Las Vegas. (Photo courtesy of Hyperloop One)

Because Musk was so involved transforming the space industry with SpaceX, the auto industry with Tesla, and the energy industry with SolarCity, he did not seem to have much time for Hyperloop. So, he developed a 58-page outline of his ideas and left it to others to develop. And they have.

Hyperloop One Unveils Testing Site

To fulfill this improbable dream, a handful of startups have stepped in – one of them being California-based Hyperloop Technologies. They have been building a test site, called DevLoop, 30 minutes outside of Las Vegas in the Nevada desert that was unveiled last week to the public. According to their press release, DevLoop is a 500-meter full-scale Hyperloop test structure weighing over one million kilograms. The Hyperloop One tube measures 3.3 meters in diameter and they are expected to perform their first full test sometime in the first half of 2017.

Hyperloop unveiled its first test site, the DevLoop on March 7. Later this year, they will run their first test of the Hyperloop. (Photo courtesy of Hyperloop One)

In November, Hyperloop Tech signed an agreement with the Dubai Roads and Transport Authority to evaluate building a Hyperloop between Dubai and Abu Dhabi. When completed, a commute that once took several hours will take just 12 minutes.

All parties involved realize the costs are going to be high. Creating a new form of transportation infrastructure is not simple and building large steel semi-vacuum tubes over ground (or under) is technologically difficult requiring trained engineers and highly skilled workers. To offset this, Hyperloop Tech is focusing some of its energy in attracting industrial freight clients.

The Future of Freight

One of Hyperloop Tech’s Transportation Economists, Dapeng Zhang, recently presented on transformational freight explaining that their “vision at Hyperloop One is to connect cities into mega-regions, and turn metro areas into metro stops. This will inevitably improve the efficiency of freight supply chains. By connecting two distant metros, Hyperloop One creates a geographical cluster which could help reduce inventory costs, promote even more just-in-time strategies, and expand same-day delivery service areas.”

A Hyperloop steel tube awaits entry into the tube processing building, where they are painted and prepped for use. (Photo courtesy of Hyperloop One)

Whether or not this is completely feasible is still up for debate, but it is exciting to see the strides being made in this type of supersonic transportation technology. Other developments such as electric cars, autonomous vehicles, and SkyTran (below) will help us move short distances, but ideas like the Hyperloop are needed to connect the larger metropolitan areas.

SkyTran – Personal Rapid Transit

Apart from the Hyperloop and autonomous driving technology, other personal mobility developments are being made. One of those is SkyTran, a company working to develop a personal rapid transit system that carries people in autonomous pods. Located near Mountain View, California, SkyTran has focused its efforts on relieving congestion in cities by creating a system that rides on an elevated monorail. It is both quick and efficient, and unlike the Hyperloop, it is nearing completion with plans to open in Israel, Nigeria, and France.

This concept image shows a drop-off point for one of SkyTran’s capsules. (Photo courtesy of SkyTran)

Using what is called maglev technology (magnetic levitation), the SkyTran uses electromagnets (similar in concept to the Hyperloop) to propel itself forward (up to 155 mph) while using little to no electricity. SkyTran says that when the pod reaches 10 mph, it can continue to glide and accelerate without any extra power. SkyTran’s CEO says the pods can on the same amount of electricity as two hair dryers.

SkyTran capsules are elevated above the city streets avoiding traffic and giving them the freedom to move at high speeds. (Photo courtesy of SkyTran)

In addition to being highly efficient to operate, SkyTran benefits in its low upfront costs. Unlike the Hyperloop, which requires rather large infrastructure and maintenance costs to ensure proper functionality of the pipe’s vacuum and propulsion system, SkyTran is projected to be a much more economic option. Because the system is set up above the streets, its footprint is small – requiring only an 18-inch steel pole to hold the steel and aluminum capsules.

The company estimates that it will only cost about USD 13 million per mile to build, compared to a subway system that can cost around USD 160 million for the same distance. Because of the low upfront costs, SkyTran believes that malls, hotels, and other private businesses will want to build their own offshoot lines – not only for their customers but because it will be profitable.

POSCO’s Advanced Auto Steel in Future Cars

Autonomous, connected, electric. These are the common buzzwords that come to mind when we think about future trends in personal transportation. At CES earlier this year, seemingly everyone had their own solution to made driving cars more connected and safer, and with less human involvement.

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.

At the 2016 North American International Auto Show (NAIAS), POSCO showcased its advanced automotive steel products that are both strong and lightweight, making them uniquely suited for the electric cars of the future.

The weight of POSCO’s advanced auto steel is about 26.4 percent lighter compared to that used in most mid-sized vehicles. But despite being lighter, it received the highest level possible ratings from Europe and North America’s automobile collision evaluation Institute, Euro NCAP and IIHS.

In addition, the Life Cycle Assessment (LCA), which measures the amount of CO2 discharged throughout the entire life cycle from material production to recycling, showed that emissions from the internal combustion engine body were 50 percent lower. Electric car emissions were also decreased by about 9 percent.

POSCO’s advanced auto steel is uniquely developed to be lighter and stronger for the cars of the future

The displayed products included the new PosM Steel and hot press forming steel (HPF). PosM Steel is a “dream material” for car manufacturers because it is five times stronger than other steel in terms of machinability while also having an impact absorption of up to 100 kg per mm². While many steelmakers have been developing PosM Steel type steel, it has never been produced on a commercial scale before. In addition, POSCO’s HPF steel is stronger than many other steel alloys making it a good solution for manufacturers looking to improve car safety.

POSCO currently supplies advanced auto steel sheets to car and component manufacturers, including Toyota, Volkswagen, and GM. POSCO has 10 automobile production plants and 24 machining centers around the globe. In addition to providing its World Premium Products, POSCO also provides Solution Marketing services that offer customized technologies developed in-house (such as welding and molding) that are customized to fit a customer’s unique needs depending on the product and manufacturing process.

Innovations in the transportation industry require big ideas, big investments, and new technological advancements. Right now, all of these seem to be coming together for what is expected to be some big changes. If the investors at Hyperloop and SkyTran have their way, pretty soon we will be able to travel across Europe on a Hyperloop, transfer to a SkyTran, and arrive in our hotel in less than an hour.

*Cover photo courtesy of Hyperloop One.

PT Krakatau POSCO held a meeting with export firms on February 9. Attendees strengthened their relationships as partners and exchanged ideas on POSCO’s sales strategies and goals.

PT Krakatau POSCO recognized the three trading companies with the highest performance in 2016. These three companies included Samsung C&T Co., Hyosung (Europe), and ThyssenKrupp (Brazil). Samsung C&T Co. was recognized for achieving the highest number of sales (88,000 tons, which accounts for 17%), while Hyosung and ThyssenKrupp were recognized for pioneering new markets. Awards were handed out to Yong-soo Kim, a senior managing director at Samsung C&T, Wolfgang Schnittker, CEO of ThyssenKrupp, and representatives from Hyosung. “We want to thank PT Krakatau POSCO for holding this event and hope to continue building our partnership for continued success,” said a representative from Samsung C&T.

Executives from three trading companies accept prizes for recording strong sales or developing new markets in 2016. From left to right: Kyung-joon Min, head of PT Krakatau POSCO; Frederik Bremsteller, a senior manager at ThyssenKrupp; Yong-soo Kim, a managing director at Samsung C &T; Bon-seok Koo, a manager at Hyosung; and Si-young Choi, head of PT Krakatau POSCO Headquarters.

During the main portion of the event, participants discussed marketing strategies to expand the sales of World Premium Products (WPP), countermeasures for common issues, and sales strategies. In addition, with its eye on overcoming recently strengthened protectionist policies, PT Krakatau POSCO also discussed ways to improve its own brand management, which included a regional sales quota management plan with further emphasis on indicating the place of origin on its products. PT Krakatau POSCO is steadily ramping up sales by implementing strategies to promote high-end products (such as WPP).

Kyung-joon Min, head of PT Krakatau POSCO, delivers his opening speech before kicking off the event.

PT Krakatau POSCO is in its fourth year of operation since beginning its full-scale sales activities in 2014. The steel mill has sold 7.7 million tons of products, including a total of 2.3 million tons of steel plates in Southeast Asia. Its cumulative exports of steel plates amounted to 290,000 tons in 2014, 445,000 tons in 2015, and 510,000 tons in 2016 due to aggressive new customer acquisition and local market development activities. The company has also connected with 307 new buyers in 23 countries including Southeast Asia, Europe, and Brazil.

In the future, PT Krakatau POSCO plans to continue developing partnerships with trading companies and to make efforts to strengthen its position and competitiveness as Southeast Asia’s first integrated steel mill and as a leading steel plate maker for the region.

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While evergreens are known as an enduring symbol of the holidays, in the construction world, they’re used to celebrate a building carefully reaching its final height.

Known as the topping out ceremony, the tradition of hoisting an unadorned Christmas tree atop a project-in-progress has been around for ages, but many don’t really know what it stands for, nor its origins.

Natural Sources

In 8^th-century Scandinavia, where the first topping-out ceremonies took place, people used sheathes of grain instead of trees to commemorate reaching the highest point. But soon after, topping-out ceremonies spread throughout northern Europe, and people eventually began replacing plants with trees for the process.

Many cultures are rooted in nature, explaining why some see the growth of a tree to be representative of a growing building.

The custom has remained relevant in modern times, even as buildings are getting taller and taller. The ceremony is still being performed in northern Europe, and has even reached the shores of the U.S. and Australia.

A Meaningful Planting

Since topping-out ceremonies showed up in Europe, the tree has been placed on top of structures to celebrate a safe construction site (thus far), hope for a secure completion of a project and also as a blessing for the building and its future inhabitants.

But, like all ancient traditions, there has been speculation on the ceremony’s original purpose.

While most agree that the construction custom may have started in Scandinavia, there are others who claim the practice started in 2700 B.C. Egypt, where slaves placed a plant on top of a pyramid to honor slaves who died during its construction.

In the U.S., there is a tale that the first high rises were built by Native Americans, who believed that no man-made structure should be taller than a tree.

Later on, American ironworkers would adapt the topping out ceremony more elaborately, attaching an American flag to the tree, and also painting and signing the steel beam before it’s placed.

It’s observed simply because ironworkers are the first to reach the top – similar to how mountain climbers of astronauts celebrate reaching their destination.

Tree Top

Regardless of the actual story behind the topping out ceremony, it’s still a welcoming sight to see on a construction site during the holidays. It indicates that the project is going smoothly, and also is an optimistic harbinger for the building’s future.

It’s an unlikely place to see a lush evergreen, but the custom shows how our roots have stayed the same, even though modern materials, such as steel, have taken over heavy industry.

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The forum, which was held for the first time this year, was designed for companies involved in social welfare activities to share information and to spread the culture of sharing. At the forum, POSCO-China received the plaque in appreciation of its activities giving back to local communities.

Out of the 10 companies that received the plaques, only two were non-Chinese companies. POSCO-China and Samsung China were selected, beating out leading international firms from the United States, Europe and Japan.

POSCO-China, as a regional affiliate of POSCO, has been active in helping the victims of earthquakes, floods and other natural disasters in China through the Red Cross Society, beginning with fundraising activities for victims of the Sichuan earthquake in 2008.

In addition, the company has been a regular contributor to a range of other social contribution activities in China, including fundraising for the preservation of local culture in Longjing, Jilin Province, a scholarship program and creating green space in Dawangjing Park in Beijing.

POSCO-China will continue to build its brand image as one that people can trust and proactively spread a culture of sharing through its various social contribution activities.

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Since the publication of Jules Verne’s 20,000 Leagues Under the Sea in 1869 up until the dawn of today’s sci-fi thrillers such as Stargate Atlantis, the concept of underwater exploration and civilization has captured the imagination of the public. Now, facing problems like overpopulation, rising sea levels and increasing natural disasters, humanity is seeking alternative living environments, and with ever-progressing technology, life under the sea no longer seems all that unrealistic.

In fact, some small underwater habitats already exist, and we have the technology to create and maintain larger ones that could easily support human sustenance. Might it be possible that one day there will be an entire network of undersea cities, brimming with futuristic technology and advanced ways of living? And if it is, how would these sub-aquatic societies be connected? 

Undersea Tunnels, a Brief History

Undersea tunnels, the most likely method of transportation in a world submerged by water, are not a new concept. In fact, the earliest example of such engineering endeavors dates back to around 2100 BCE, when the Babylonians used a tunnel to divert the Euphrates River. It wasn’t until the 19^th century that the world saw a succession of more challenging tunnel projects, made possible by vast improvements in surveying and ventilation techniques.

The first notion of the Channel Tunnel, which connects England and France, was proposed to Napoleon Bonaparte in 1802 by a French engineer named Mathieu-Favier, but it wasn’t until the 1960s that it became a reality. Instead, London’s Thames Tunnel became the first modern undersea tunnel in 1843, taking almost 20 years to complete. The tunnel was originally designed for, but never used by, horse-drawn carriages.

Noting the comparable advantages undersea tunnels have over bridges, such as their ability to divert traffic and not be affected by external factors such as wind or rain, city planners began incorporating them into city layouts in the late 1800s. But, at the time, the methods used to construct these tunnels consisted mainly of excavating in painstakingly small increments, and were incredibly time consuming.

The game changed in 1903 with a construction project beneath the Detroit River in America when engineers used a method that involved anchoring premade sections of steel tube into a pre-dug trench on the river floor. Then, in 1971, a new era of underwater tunneling began with the construction of the Seikan Railroad Tunnel, which currently stretches 53.85 kilometers beneath the Tsugaru Strait in Japan. Instead of using the antiquated tunneling techniques of the past, tunnel builders began to utilize giant tunnel boring machines to make the process go faster. Since then, tunneling projects that could once only be conceptualized have become a reality.

The Eurasia Tunnel Project, for example, is a 14.6 kilometer-long road tunnel that will link Europe and Asia via the Bosporus Strait, and is currently in the last stages of construction. It is a project that has long been discussed and aims to reduce traffic in Istanbul, the second-worst European city in terms of traffic congestion.

Tunneling to the Future

Of course transportation tunnels like these would be vital in aquatic lands, but a sustainable undersea city would also need gas, oil, electricity and, most importantly, oxygen. Yet, some of these types of undersea tunnels exist, and are constantly being positioned across the waters of the world.

In the most recent tunnel developments, POSCO, in coordination with GS Caltex and Jeonnam Development Coorporation, has made plans to construct a 3.98 kilometer-long undersea tunnel connecting Gwangyang Port and Yeosu Industrial Complex by the first half of 2019.

POSCO Green Gas Technology will use the undersea pipe network to supply syngas produced at the Gwangyang SNG Plant to GS Caltex, which will then use the syngas for petroleum refining and enhancing processes. Furthermore, the undersea tunnel will minimize risks associated with transport and establish an efficient undersea logistics infrastructure by reducing production and logistical costs.

POSCO’s gas pipeline tunnel is indicative of what is to come. Perhaps the undersea tunnels of the future will allow for the transportation of fresh drinking water, alternative energy resources or even food sources from faraway lands. But with real-life projects concerning tunnels between Morocco and Spain, Japan and South Korea and the mainland of Canada and Prince Edward Island on the table, it is clear that such possibilities are not only realistic, but also limitless.

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University of Phoenix Stadium 

(Image Source: University of Phoenix Stadium Official Website)

Located in Glendale Arizona in America, University of Phoenix Stadium is a multi-purpose facility with unique features of retractable steel roof and field. The 63,400-seat stadium, which is expandable to 72,200, have the NFL’s Arizona Cardinals and Annual VIZIO Fiesta Bowl as the primary tenants. As a marvel of design, engineering, and technology, the stadium was voted as one of the top ten sports facilities in the world by Business Week in 2006.

Here are some facts that even football enthusiasts might have not known before. With a solid mission for the environment, University of Phoenix Stadium is a member of the United States Green Building Council (USGBC). When tailgating, a big part of game day experience, guests are given complimentary recyclable bags for disposal of recyclable materials. While the 10% of stadium’s seating is made from recycled plastic, the venue uses “Green” products such as hand soap, all cleaning solutions, microfiber mops and rags to preserve water and the environment.

Another interesting fact about the stadium is that the stadium’s field is wheeled in and out on 546 steel wheels that ride along 13 parallel steel rails, traveling 741 feet. It is almost unimaginable to guess how much steel was used for the construction!

(Reference: University of Phoenix Stadium Official Website)

Allianz Arena

(Image Source: Allianz Arena Official Website)

Allianz Arena, Europe’s contemporary stadium, with the size of more than 70,000 spectators, is the third home for FC Bayern Munich. Its extraordinary facade, covered with 2,760 diamond-shaped cushions, constantly amazes visitors. The stadium is always filled with fans every season because of the tenant team’s star players and other facilities such as outstanding catering and parking space at the venue.

As a special feature, Allianz Arena is lit in red when the host team is Bayern Munich, in blue when it is 1860 Munich, and in white when the German national team hosts the football match.

For the construction of Allianz Arena, approximately 22,000 tons of steel was used. The retractable roof is where massive amount of the steel was applied to. Overall, the stadium was warmly welcomed by the Munich community and more than 60 percent considered Allianz Arena as a favorable construction project. According to “Cicero”, political journal, the stadium became Germany’s favorite sports location.

(Reference: Allianz Arena Official Website)

Estádio Municipal de Aveiro

(Image Source: Panoramio)

Located in Aveiro, Portugal, Estádio Municipal de Aveiro Stadium was designed for UEFA Euro 2004 tournament as the fifth-largest football ground of the country. A home ground for Sport Clube Beira-Mar of the Segunda Liga, the stadium is a venue for various football matches including the Portugal national team games.

Estádio Municipal de Aveiro Stadium is known for its dynamic design which is a combination of simple shapes and lively colors. Designed by Tomás Taveira, the stadium benefits from its cheerful colors as the intense tonalities bring out the celebration atmosphere of sporting events. Examples of the polychromic feature are red steel pylons, sky-blue edges of the roof and seating areas of rainbow shades. Having a capacity for 32,830 spectators and the special design features, the stadium is visually appealing both empty and full of people.

(Reference: Wikipedia)

Michigan Stadium

(Image Source: MGoBlue)

One of the America’s most classic stadium, Michigan Stadium, also known as the Big House, is a symbolic icon of University of Michigan-Ann Arbor. Opened in 1927, which was the golden age of college football, the stadium was modeled after the Yale Bowl and was constructed with 440 tons of reinforcing steel and 31,000 square feet of wire mesh. Started with an initial capacity of 84,401, the venue currently upholds up to 109,901 spectators after a major renovation in 2010. Although the stadium is not known for extravagant colors or sleek, modern design, the stadium embodies its own meaning as one of the oldest and largest college football arenas in America.

(Reference Source: MGoBlue)

Wembley Stadium

(Image Source: Wembley Stadium Official Website)

Sponsored by EE, Wembley Stadium is a multiplex football stadium in Wembley Park, London, United Kingdom. Wembley Stadium is known for hosting major football matches, such as FA Cup Finals and home ground matches for England National Football Team. Wembley Stadium opened in 2007 after demolishing the previous Wembley Stadium. The stadium has a retractable roof, just as many other modern stadiums, and 134m-high Wembley Arch over the venue. .

Wembley Stadium is one of UEFA category 4 stadiums. Category 4 is the highest of the category. With 90,000 in capacity, Wembley Stadium is the second largest stadium in Europe and largest in the United Kingdom. Considering the immense size of the structure, which even contains 2,618 toilets, about 23,000 tons of steel were used for its renovation. This stadium is currently owned by the Football Association where HRH the Duke of Cambridge (Prince William) being the current president.

(Reference: Wembley Stadium Official Website)

As shown, today’s large venues, especially these amazing stadiums, are built on steel skeletons. As an essential material for the modern world, steel will continue to evolve into even more ambitious and innovative creatures in the future.

The manufacturing field of automobiles, energy, home appliances, electronics is earning spotlight as it is creating value, in the Europe market, which continuously creates new fascinating trends. POSCO has been widely introducing its brand’s value by establishing a cooperation system among Steel Business Headquarters, Pohang and Gwangyang Steel Works, Europe Offices, European Local Processing Centers, Logistics Centers, and performing effective correspondence against European clients’ demand of steel. POSCO shows its global potential by providing competitive steel within the European market, and which captivates its clientele.

Global Automotive Materials Marketing with Volkswagen and More

With the basis of its global production and sales network, POSCO is enhancing automotive flat product sales in the growth area of strategic demand. This year’s automotive flat product sales amount is expected to exceed 8 million tons.

Especially, Volkswagen, a German automobile manufacturer, is solidifying a cooperative relationship by highly evaluating POSCO’s value creation capability that is based on strict quality and time control.

The Volkswagen headquarters in Germany and global Volkswagen factories are improving their automotive material supply and quality stability through POSCO’s global infrastructure. Moreover, Volkswagen is discussing various combined efforts with POSCO for the purpose of vehicle weight reduction and production cost reduction. With a solid basis of trust from European clients like Volkswagen, POSCO is expected to speed up its advancement in the world market.

EVI Activities for the Energy/Offshore Plant Industry

The energy/offshore plant industry is high in change of risk and difficult to predict. In terms of technology and marketing, a high entry barrier exists because the industry only purchases steel materials from exclusive suppliers with stringent quality certification.

However, various EVI (Early Vendor Involvement) activities has enabled POSCO to form a network in the European energy/offshore plant industry in a notably rapid pace. For example, POSCO has been developing steel and technology solution with the perspectives of clients and expanding business channels based on the development and constantly seeking for new business opportunities.

Through cooperation of POSCO Steel Business Headquarter, Poyang/Gwangyang Steel Works, the Research Institute of Industrial Science and Technology (RIST) and European offices, POSCO is executing marketing activities and expanding direct business with major European oil companies such as Shell and Saipem. With a basis on solution marketing of quality certification and technology collaboration, POSCO is promoting to advance to the extended market by forming close relationships with major European client companies.

New Renewable Energy Materials Development

Sales of steels for the new renewable energy industry is another example of POSCO’s effort to expand business in the European market. In May 2012, Siemens and POSCO signed the MOU for cooperation in steel, energy and material field’s business and technology development. They have been discussing a joint promotion approach for steel technology cooperation, new material business and more.

As the general interests in green energy and demand for new renewable energy growth escalate in Europe, Siemens is also increasing its productions for green energy installations such as a wind power generator. In response, POSCO suggested a new type of steel that suits the characteristics of wind power generator materials in the European market. Since this year, POSCO is developing and selling high magnetic non-oriented electrical steel sheet targeting the new renewable energy generator. POSCO is responding preemptively to the client’s request in addition to its product development and supply.

Targeting the Premium Home Appliance Market in Europe

In the field of display home appliances in the European premium market, Samsung electronics and LG electronics, the global home appliance companies of Korea, are standing at the front line in the local market. Before the companies execute their successful strategies for Europe, POSCO’s preemptive material supply comes first. Especially due to the industry’s fast cycle of new product releases, POSCO predicts the technical transformation of display home appliances and prepare for the prospective demand for steel materials. Accordingly, POSCO is operating with a response strategy to provide future home appliance material.

In 2007, POSCO founded POSCO-PWPC( Poland Wroclaw Processing Center) with LG International Corp. in Poland. Moreover, establishing POSS-SLPC(POSCO SAMSUNG Slovakia Steel Processing Center) with Samsung C&T in Slovakia, POSCO is supporting the display home appliance material for the European market. Currently, Samsung electronics and LG electronics are expanding their influence across Europe. As a stable partner company for materials, POSCO will supply competitive materials and solution.

Client Acquisition through Solution Marketing for STS Clients

Occupying about 15% of the worldwide demand, Europe is a global STS cold-rolled steel market where its annual demand is about 3 million tons. Especially, Italy and Germany are known as the top two STS markets of Europe. Located in Vallese di Oppeano complex, POSCO-ITPC (Italy Processing Center) is POSCO’s very first STS product processing center established in Europe. The processing ability of the center is about 35 thousand tons per year.

Deviating from previous distribution system through the establishment of POSCO-ITPC, POSCO was able to adopt a system of integrating the global STS production center’s products and selling to the actual demanders in Europe. At the same time, POSCO became capable of high quality processing and Just-In-Time production requested by the European client companies demanding high quality STS.

While executing various marketing activities to procure stable client groups of STS demand in the European market, POSCO-ITPC has obtained more than 140 clients of actual demand after only one year since its foundation. Also, rather than simply providing a cutting service of STS products, POSCO is strategically reinforcing its cooperative relationships by expanding client-oriented solution marketing activities. For example, POSCO is providing combined-processed product service to create added value and high quality processing service for excellent abrasive products. As a result of these efforts, POSCO-ITPC continues to create business profits from January 2014, which is only three months after its operation launch.

POSCO Holds an IR Conference Call To Announce The First Quarter Earnings, Reports 15,440 Billion In Sales Revenue On A Consolidated Basis

POSCO (NYSE:PKX) held a conference call on 24 April to announce the results of their first quarter for fiscal year 2014. On a consolidated basis, the company recorded KRW 15,440 billion in sales revenue and KRW 731.3 billion in operating profit.

The company saw a drop in sales and operating profits due to global economic recession. However, its operating profit margin grew by 4.7 percent, as a result of improved profitability in non-steel businesses. Net profits decreased to KWR 55.6 billion, due to the weakened won and tax audit expenditure.

On a Non-consolidated Basis, POSCO Records KRW 7,363.8 Billion in Sales Revenue and KRW 517.7 Billion in Operating Profit

On a non-consolidated basis, the company recorded a sales revenue of KRW 7,363.8 billion and operating profit of KRW 517.7 billion.

The volume of crude steel production and sales for Q1 dropped to 9.3 million tons and 8.4 million tons respectively, effected by shorter calendar days, as well as the maintenance of main facilities.

The seasonality also had an impact to POSCO’s quarter-to-quarter sales in the major steel-consuming industries such as automobile, and shipbuilding & ocean plant, which decreased to 2.0 million tons and 0.7 million tons respectively.

Despite the drop in Chinese steel prices, POSCO was able to record an operating profit margin of 7.0 percent, reporting a quarter-to-quarter increase of KRW 30 billion on a non-consolidated basis, by maintaining its price while cutting down on raw material costs.

POSCO further improved its profitability by converging marketing and technology to reinforce customer-oriented sales activities. The company increased the sales portion of its seven ‘high value-added’ and ‘strategic’ core product areas including automobile, shipbuilding, and energy steel pipes from 48 percent in 2013 to 51 percent. The company also strengthened its solutions for the demand industry by building high manganese steel LNG storage tanks, expanding automobile steel plate supplies for super high strength complicated structures on the 1Gpa grade, and developing 16 new steel grades that respond to customer needs.

Continued Efforts to Improve Financial Soundness

Efforts to improve its financial soundness were also continued.

In March, POSCO reimbursed high-yield bonds valued at USD 700 million to cut down the debt, reducing the cost of interest by using its own funds and low-yield Japanese Yen bonds issued in December 2013. Furthermore, the company made various efforts to improve financial conditions, such as reducing turnover period of the assets. As a result, its cash and cashable assets increased by 46 percent compared to the end of 2013, reaching up to KRW 2,033 billion.

POSCO is expected to further improve its cash flow as it cuts down on investment this year. The company is readjusting its investment shares in project-financing for POSCO E&C, and the funds implementation plan for its joint venture with Dongkuk Steel and Vale, Brazil CSP Steel Plant Complex, was also delayed.

Improved Performances of Key Affiliates In Trade and Construction Businesses

Performance from its major affiliate companies including trades and constructions also improved this quarter. POSCO E&C reported 6.6 percent in operating profit margin, recording a 2.2 percentage point  growth quarter-to-quarter, and Daewoo International also reported 1.3 percent in operating profit margin, recording an increase of 0.4 percentage point.

POSCO anticipates that the global demand for steel in second quarter to recover slightly, as steel prices rebound after the Chinese New Year due to inventory adjustment and restored demand. The global demand will turn to a stable 3 percent growth level in 2014 ~ 2015, as the demand from the U.S. and Europe recovers to 3 ~ 4 percent range.

POSCO plans to go all out in improving management performance, by reinforcing sales activities that incorporates technology into marketing. The company will also continue its efforts to increase the sales portion of ‘high value’ products by providing customized solutions that touches all aspects of the business, from product planning to sales, and services, while at the same time maximizing its financial soundness.

2014 Q1 Business Results

The Korea consortium formed between POSCO, Hyundai Merchant Marine (HMM), and the Korean Railway (“Korail”) signed an MOU with Russian Railways on November 13^th at the Blue House with the presidents of Korea and Russia in attendance, to cooperate in the railway, logistics, and port fields.

This was a development based on the Eurasia initiative President Park Geun-hye proposed to President Vladimir Putin at the G20 Summit in September where private companies lead the project, and is expected to contribute to developing Korea-Russia relations as well as open the growth plates for the newly rising Northeast Asia region.

The Najin-Khasan project, which is at the core of the cooperation, was established by Russia for railway construction and port development in North Korea’s Najin and Russia’s Khasan regions.

Korean companies attempted to participate by establishing a joint logistics company back in 2007, but it did not work out at the time. With little development following, Russian Railways sought to enter the Far East region at the end of 2011, and contacted POSCO for possible participation to re-start talks on the project. POSCO evaluated the development potential of the Far Eastern and Siberian regions highly, and concluded that linking logistic lines was crucial to securing a stable material route and reviewed participation in the project.

POSCO also, for a larger frame business of linking the Eurasia logistics route in the long-term, determined that a domestic company with specialties was necessary, and formed a consortium with Korail in the railways field and Hyundai Merchant Marine in the logistics field for joint participation. 

The project will be carried out in two phases. The first phase will focus on the North Korea-Russia joint venture RasonConTrans led railways connection, port and terminal development, and operation between Najin and Khasan. The second phase will expand the project to linking the TKR (Trans Korean Railway) and the TSR (Trans Siberia Railway) considering political and economic situations.

 Economic advantages will exist once the second phase of the project linking the TKR and the TSR is completed, as cargo from the Asia region can be transported to Europe through the Eurasia line at approximately one-third the distance and less than half the original delivery time.

From the perspective of POSCO, which is participating in the consortium, more than 2 million tons of resources are imported through Far East ports, but if the project is carried out smoothly, logistical stability can greatly improve and Korail can directly benefit from the TKR-TSR linked project. Hyundai Merchant Marine can also secure an advantage in expanding business in the region by establishing a complex logistics network. POSCO and Hyundai Group especially are constructing an international logistics complex in the Hunchun region which is contiguous to North Korea, China, and Russia, and thus expect great synergy once the Najin-Khasan project gets on track.

Meanwhile, experts have determined that this project can have greater power of execution and stability with the participation of POSCO in the resource/infrastructure field, Korail in the railways field, and Hyundai Merchant Marine in the logistics field, all specialized companies in each field.

The Korean consortium consisting of POSCO, Hyundai Merchant Marine, and Korail will thoroughly review profitability through economic feasibility analysis, and will also have close discussions with the government and project partners from a future-oriented perspective to have Korea contribute to leading Eurasia economic consolidation.