CEO Kwon explores CES 2018

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

SEE ALSO: POSCO CEO Ohjoon Kwon Visits CES 2018

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

Smart Connectivity

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

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

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

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

Smart Transportation

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

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

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

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

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

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

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

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

So, what happened to the EVs of the past, and how can the world prevent them from going the way of the dodo bird for yet a second time in history?

The Golden Age of Electric Vehicles

The first EV hybrid car was made in 1901 by Ferdinand Porsche, and by 1917, 38 percent of the cars on US roads were EVs, 40 percent were steam-powered cars and the remaining 22 percent were gasoline-fueled.

Porsche recreated the Semper Vivus, the first hybrid EV made by Ferdinand Porsche. (Source: Super Street)

At the time, horse-drawn carriages were the norm, and people were desperate to solve the “pollution problem,” meaning pollution in the form of horse droppings. Even then, EVs were seen as the solution for a clean environment, and from 1895 to 1920, 50 companies were producing EVs. However, gasoline-powered vehicles were also a viable option and increased in number along with EVs as more highways were built and people and goods started to travel greater distances.

A woman cranks her car on the streets of New York in 1923. (Source: Pinterest)

EVs had an initial advantage over gasoline cars for several reasons. They were more environmentally friendly, or the exhaust didn’t give off an awful smell, were less noisy and easier to drive. The shortcomings of gasoline cars also played a factor. Gasoline cars had to be started manually, or “cranked,” every time, making them laborsome and even dangerous to drive. Although they had better range, gasoline cars also broke down more often. The tables quickly turned.

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

The Rise of Gasoline and Ford

The company that led the rise and dominance of gasoline cars was Ford and its Model T vehicles that sold for USD 650 versus EVs that sold for around USD 3000. When Ford mastered mass production with assembly lines, the company turned out 1,670,000 vehicles in 1923.

Ford’s Model T sold in the 1920s pioneered the normalization of gasoline cars.(Source: Think Link)

Another key turning point for gasoline cars was when Charles Kettering invented the electric ignition in 1915. Drivers no longer had to start their cars manually, one of the reasons gasoline cars were not popular, especially among women.

As more highways were built, there was a demand for greater range that EVs just could not meet, especially when gas stations were cheaper to build than charging stations. Plus, there was no standardized plug for different EV models. Later on, when gasoline cars came equipped with exhaust-control devices that reduced the amount of harmful emissions, people were sold and EVs could no longer compete. EVs made a short resurgence back in the 1970s due to the global oil crisis, but by the 1980s, EVs were almost obsolete.

Back to the Future

Today, it seems as if history is repeating itself. There is a sense of urgency worldwide to tackle the pollution problem – except this time it’s not horse droppings.

In ten years between 2005 and 2015, the number of EVs went from hundreds to a million. Then, in 2016, there was a 60 percent increase in the global number of EVs, and the numbers are projected to grow exponentially. Many countries are backing the switch to electric fuel through tighter regulations on emissions and even completely banning gasoline and/or diesel cars.

Many countries around the world are now banning gasoline and diesel-fueled cars. (Source: Quartz)

Despite the rapid growth, EVs still make up just 1 percent of the global fleet of cars. According to the International Energy Agency (IEA), there need to be 150 million EVs by 2030 and 1 billion by 2050 to contain global warming within 2 degrees Celsius.

For widespread EV adoption, manufacturers, suppliers and policymakers alike can pick up some hints from the past.

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

Takeaways

EV manufacturers of the past and present have not found a cure for drivers’ range anxiety. It’s a scenario that likely crosses the mind of any driver considering an EV; running out of juice with no charging station in sight.

A study by MIT shows that range anxiety is irrational because most people drive just 45 miles a day, well under the range of today’s EVs.

The range of today’s EVs. (Source: Vox)

A well-organized charging infrastructure is vital not only for drivers with range anxiety, but also for car companies and those in the charging business. Charging equipment is costly and stakeholders need to know there will be enough demand to make a return on their investment, but drivers are more likely to make the switch after a charging ecosystem matures. The dilemma calls for a collaborative effort among automakers, policymakers and companies like POSCO.

POSCO ICT’s ChargEV

POSCO ICT is an IT and engineering company looking to relieve range anxiety and take a holistic approach to establishing a charging infrastructure in Korea for a greener future. In partnership with various automakers, businesses and the government, POSCO ICT set up more than 300 charging stations in Korea and oversees many more private charging stations within its network.

There are over 300 POSCO ICT ChargEV stations in Korea. (Source: POSCO ICT)

The charging ecosystem is run through an app called ChargEV where drivers can sign up to get real-time information about charging locations, make reservations and even pay for charges. ChargEV is also a platform for customer support and reporting accidents. In addition, partner companies such as shopping centers and hotels that are now equipped with charging stations stand to benefit from the EV network.

EVs are, once again, a major disruptive factor in the automotive market and the future of private transportation. This time around, the stakes are much higher than pungent streets. As more countries and companies commit to reducing harmful emissions, the number of EVs will likely continue to spike. However, if stakeholders can learn a thing or two from the past, it’s that establishing a holistic charging ecosystem will have as much of an impact on EV adoption as the technological advancements of the vehicles themselves.

Cover photo courtesy of SCMP

According to research by McKinsey, approximately 51 percent of all job-related activities in the U.S. can be replaced by robots. Another recent research conducted by PwC shows that 40 percent of jobs in the U.S., 31 percent in the UK, 35 percent in Germany and 21 percent of the jobs in Tokyo are vulnerable to replacement by robotics or other artificial intelligence (AI).

An imagined image of an all-robot workforce (Source: Digital News Asia)

The figures are daunting, but in practice, companies have yet to realize a fully-automated system that matches human labor. The truth is, humans need robots to take over mundane and physically demanding tasks, while people take on creative and innovative roles in the workplace. What is more likely is a shift in workplace dynamics, not a decrease in the overall number of jobs available. Today, most companies have automated their systems to varying degrees, and robots are continually being upgraded.

The Human-Robot Collaboration

Last year, the International Organization for Standardization (ISO) published ISO/TS 15066, the safety standards for collaborative robots, or cobots that work in the same workplace as humans simultaneously. Before, it was common to find robots restrained in cages, or shut off while human workers loaded equipment onto the robots. Now, with enhanced sensors and diverse power settings, the safety risks of working with cobots are low. To add, many industries are embracing cobots over traditional industrial robots that work alone, because cobots are less expensive and require much less energy to operate.     

A welder gets help from a cobot

Not only are they a sustainable solution for companies, they increase workers’ productivity. According to Business World, Julie Shah and her team at the Massachusetts Institute of Technology conducted a study looking at human-robot collaborations at a BMW plant. She found higher levels of productivity, efficiency and performance when humans and robots collaborate in comparison to all-human or all-robot systems. Collaboration also reduced human idle time by 85 percent. Many argue that this increase in productivity will lead to more business and eventually create more jobs that revolve around working with cobots.

The International Federation of Robotics (IFR) found that robot-driven productivity accounted for 10 percent of total GDP growth in OECD countries from 1993 to 2016, and that number will continue to grow in the coming years. The IFR predicts worldwide usage of industrial robots to reach 2.6 million by 2019. That’s one million more robots than in 2015.

Cobots are already making their way into factories and warehouses, and human workers are learning to work with their new counterparts.

Auto Industry

The automotive industry is one of the most common places to find cobots as major automakers were early movers in incorporating robotics into the workforce. That’s why it’s the perfect place to observe the changing dynamics of the workplace with cobots. At Ford’s new production facility, cobots work shoulder to shoulder with the production team in what they call a blended solution. Mostly, cobots have taken over repetitive tasks, physically demanding or dangerous tasks and freed up workers to focus on new innovations and creative projects. The facility runs 21 hours a day, 6 days a week thanks to around 550 cobots and robots.

Take a look at the new working dynamics at Ford below:

Food Industry

The food industry is another sector ripe for human-cobot collaboration, especially in the packaging sector. However, pizza restaurant Zume is changing the delivery pizza experience with automated technology. Cobots have taken over tasks such as spreading the sauce and lifting the pies into the oven. They will be implementing more robot technology to free up kitchen staff to work in their offices for business expansion. Another addition to come is a delivery truck equipped with 50 ovens that will start cooking the pizzas based on exactly calculated arrival times.

Watch the video below to find out more about what Zume is working on:

E-Commerce Industry   

Amazon is another early mover that introduced 15,000 cobots named Kiva to their warehouses in 2014. Two years prior in 2012, they bought Kiva Systems, a robotics company, for USD 775 million. Since then, the number of cobot employees has tripled.

Here’s how it works. Human employees scan items and place them into the shelf-like pods. Instantly, the scanned item is available to purchase online. Kiva’s software keeps track of where each item is so that it can easily be found at the picking station, where a human employee retrieves the product for shipping. Amazon managed to rapidly increase efficiency and speed up delivery times with Kiva. They continue to incorporate AI into their services, including their drone delivery system.

Take a look at Kiva in action in the video below:

Healthcare Industry

In the healthcare industry, cobots are being incorporated to assist doctors in surgery and lighten the burden of caregivers by taking over mundane tasks. Pairing cobots and their software technology with doctors has several benefits including minimized invasiveness, exactness and reduced mistakes in surgical procedures. To date, AI and cobots have allowed doctors to access new parts of the human body for surgery, and achieve breakthrough feats the way they examine, monitor and operate on patients.

Take a look at the most innovative cobots to date in the healthcare industry:

Steel Industry

POSCO is a leader in applying AI to the steel production systems. In 2015, they developed an exoskeleton cobot designed to enable workers strength beyond their own. The cobot is made of carbon fiber, aluminum and steel, and was first tested with Daewoo Shipbuilding and Marine Engineering, at their facility in Okpo-dong. The cobot enabled shipyard workers to easily lift heavy pieces of metal weighing around 70 pounds, and researchers are working to allow workers to lift up to 200 pounds effortlessly.

Watch the video to find out more:

Aside from cobots, POSCO also incorporates AI and IoT into their smart factory, the first smart steel factory in the world, and continues to research and develop smart solutions to optimize the production processes.

Continued automation and the incorporation of cobots in the workplace is inevitable, and governments and institutions will have to provide resources for people to fill jobs tailored to working with cobots or those that cannot be replaced in any way by robots and AI. What’s ahead is figuring out how to think of cobots as coworkers that will only enhance one’s work. Also, companies have to figure out how to fully realize the potential for increased economic productivity through this type of cobot co-work that will lead to the development of more innovations, technology and ultimately, new business ventures.

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Volkswagen brought back its iconic Microbus in the form of a new electric, self-driving ID Buzz concept car. (Engadget)

The headlines from the Consumer Electronic Show (CES) were all about self-driving, electric, and connected cars. As these topics continued to be highlighted at NAIAS (see the new Volkswagen ID Buzz pictured above), there was also a focus on the importance of structural design.

Innovations in high-strength steel have allowed car makers to reduce the weight of vehicles without compromising safety. From large sedans to electric vehicles, advances in steel were spotted all throughout this year’s NAIAS with BMW’s new 5 Series and Ford’s new 2018 F-150 both showing off their lightweight aluminum and high-strength steel compounds that helped shed more than 100 kg from the BMW model.

The push to make vehicles lighter raises safety concerns. Lighter cars require lighter steel, and to make lighter steel there are typically other compromises that have to be made. POSCO, however, with its advanced high-strength automotive steel, has found the solution for automakers to make cars that are both safe and lightweight.

The new BMW 5 Series (left) and Ford F150 (right) made their debut at the North American International Auto Show. Both models used advanced high-strength steel to reduce weight and maintain safety. (NAIAS Image Archive)

POSCO’s Lightweight Auto Solutions Increase Safety

In 2016, POSCO became the first steelmaker to participate at NAIAS, displaying its advanced high-strength steel for automobiles, including its the PosM Steel and hot press forming steel (HPF). PosM Steel is five times stronger than other types of steel making it great for impact absorption and increased safety.

Providing a rapid solution upgrade for strengthened crash requirements, the safety of POSCO’s advanced materials has been certified by the Insurance Institute for Highway Safety (IIHS). In addition, the strength and crashworthiness of POSCO’s advanced steel solution received a score of 5 stars from USNCAP and ‘good’ safety ratings on the IIHS Moderate Overlap Front and Small Overlap Front tests. By reducing possible safety concerns with high strength body solutions, POSCO is able to contribute to the advancement of global auto manufacturers.

With steel being more important than ever in the auto industry, POSCO’s commitment to improving the strength and safety in its automotive steel has helped it maintain its position as a global industry leader. As Gregory Warden of GM said, “there is a whole new generation of steel coming” – and POSCO is helping to lead the way by creating new solutions that guarantee safety and fit the unique needs of its partners.

Don’t miss any of the exciting stories from The Steel Wire – subscribe via email today.

POSCO-MPPC (President Kim Kwang-bok) is an automotive flat steel processing center in Mexico. It opened its first plant in Huejotzingo, Puebla, in 2006. Since then, it has contributed much to the exponential growth of the automotive industry in central Mexico by offering steel processing services.

In order to provide prompter services to customers in northern Mexico, the company opened its second plant in Villa de Reyes, San Luis Potosí, in 2008. Subsequently, its third plant began operations in Celaya, Guanajuato, in 2013. With the three plants under its control, POSCO-MPPC is expected to play a greater role in POSCO Group’s global supply chain.

The combined processing capability of the company is 450,000 tons a year. It endeavors to meet the rapidly-growing demands of customers in the local automotive industry, which have recently been accelerated by a number of free-trade agreements with more than 40 nations.

In just nine years, it achieved an accumulated sales of 2 million tons, based on the steady growth of its production capability and the commitment of approximately 350 employees. Last year, the annual sales of the company surpassed 400,000 tons.

Another key factor behind its success is its aggressive search for new business opportunities. Since 2013, it has focused on developing new clients and expanding its market shares in non-automotive sectors, such as construction and machinery.

POSCO-MPPC has provided steel products to global carmakers including GM, Ford and Chrysler. Last year, it became the only recipient of GM’s Supplier Quality Excellence Award in the steel industry.

These remarkable achievements that span the past nine years would not have been possible without the dedication and commitment of the company’s employees. In addition to strengthening existing business relationships, they are working hard to cut down production costs and provide high-quality products and services.

In recognition of its efforts to increase profits through diversification, POSCO-MPPC has recently been selected as an Excellent Overseas Affiliate of POSCO. The award ceremony took place on March 25.

POSCO-MPPC is seeking to be a major steel supplier by continuing to contribute to the growth of Mexico’s economic development. To this end, it will deliver quality- and service-oriented total solution services across various fields including the automotive, electronics and construction industries.

As the number of vehicles Mexico produces annually is predicted to increase 54 percent from last year’s level to nearly 5 million in 2022 (according to IHS Automotive), the company will also make continuous efforts to meet the demands of the quickly growing local automotive industry.

Beyond Gasoline & Diesel, Iron as the Fuel Option for the Future
In the very near future, cars might run on iron. Despite the spotlight on iron as an alternative energy for the future, can you actually believe this could happen for real? Due to the rising gasoline prices and restricted fossil fuel, iron has been discussed as the potential energy resource in many laboratories. In 2005, Oak Ridge National Laboratory in the United States reported that metal fuels such as iron, boron and aluminum, can be developed for automobile transportation.

It might sound like a pie in the sky since the metal’s boiling point is much higher compared to the temperature of water coolant. The combustion temperatures of the metal fuels are high enough to burn down the entire vehicle. However, when nano-technology gets involved, it is a totally different story. That is, when iron particles are broken up into 50 nanometers, which is a size equal to one-thousandth of a human hair, only 250℃ is required to make the iron particles ignite.

Moreover, having a nature of green energy, iron nanoparticles hardly leave ashes after combustion and can re-produce fuels after many cycles of oxidation and reduction. Since ignition period of iron nanoparticles only last for 0.01 ~ 0.2 second, it is impractical to be commonly used as transportation fuels at the moment. In recent year, however, a follow-up study on ‘clusters’ of iron nanoparticles to increase the burning time has been in progress. Besides, other metal fuels like aluminum are also in the active process of further research. Though it is only at a beginning stage, iron nanoparticles are expected to show promise as future fuels.

(reference:  POSRI https://www.posri.re.kr/eng/)

Innovation Goes On, Lighter Cars!

• A New-Born-Baby SUV, Ssangyong’s ‘Tivoli’

Lately, many auto-enthusiasts have been transfixed by ‘Tivoli’, SsangYong’s new compact crossover which was launched only a week ago. Surely, the spotlight comes from the fact that it is the first model to be developed ever since Indian industrial giant Mahindra Group’s takeover. However, that is not necessarily the only reason. It is also because POSCO’s automotive steel plates were applied to this small SUV. In order to reflect the trend of vehicle weight reduction, POSCO and Ssangyong shared a number of technical consultation process and finally applied POSCO’s advanced high-strength steel to 72% of the car’s body. You can set your expectations high on ‘Tivoli’!

• Lighter than Air, Renault’s Concept Car ‘EOLAB’

Making its debut in 2014 Paris Motor Show, Renault’s new concept car ‘EOLAB’ is the result of cooperation between POSCO and the European automaker. ‘EOLAB’ is known for its amazing fuel efficiency, traveling up to 100 km with only 1L of gas. This unbelievable level of efficiency was achieved by POSCO’s advanced high strength steel, which is known for its robust and lightweight quality. As the material minimizes the car body’s weight, the fuel economy enhances to its maximum! For more information on ‘EOLAB’, visit 2014 Paris Motor Show and POSCO #1: Advanced High Strength Steels in Renault’s Concept Car.

On August 15, POSCO held a completion ceremony for a cold-rolled stainless steel plant called “POSCO Assan TST” in Izmit, Turkey. POSCO Assan TST, which will become the first stainless steel plant in the country, has an annual production capacity of 200,000 tons. With the completion, POSCO has now secured a production base at the west front of ‘U-Belt,’ a part of POSCO’s global UI development strategy across newly rising countries in Asia.

Turkey is a strategic point for entering the markets of Europe, Middle East, Russia, North Africa and the Commonwealth of Independent States. Recently, the nation has also been going through a rapid industrial drive from light industry to heavy industry basis. Renault, Fiat, Ford, Nissan, Honda and other major car manufacturers are operating businesses in Turkey and the local market itself is often referred as one of Europe’s top three home appliance consumer markets along with Germany and Italy. The demands for high quality cold-rolled stainless products are high due to these factors in Turkey.

POSCO Assan TST holds a significant meaning because, despite of such soaring demands for stainless products, Turkey did not have any stainless plant within the country and experts had previously suggested that a supply shortage reaching 1 million tons could occur by 2015. With the completion, POSCO will be able to take the advantageous position first in the Turkish market, and also react swiftly for the demands from the neighboring areas. Once the ITPC, an Italian stainless processing center starts operating next month, the two facilities will work together to create a sales synergy in the near future.

About 300 guests attended the ceremony to celebrate the completion of POSCO Assan TST, including CEO and Chairman of POSCO Chung Joon-yang, Turkey’s Minister of Science, Industry and Technology Nihat Ergun, Minister of Economy Zafer Caglayan and other VIPs from the Turkish government and POSCO’s partners. During his remarks, Chairman Chung said, “POSCO Assan TST is the essence of the long relationship between Turkey and Korea. I hope POSCO continues to be loved by Turkey and to grow in line with the local market for mutual prosperity.” While speaking with the Turkish government ministers, the Chairman also requested continuous supports for the cold-rolled stainless plant in Turkey, and in response, Minister Ergun and Minister Caglayan said the government will provide its full support for the plant.

POSCO Assan TST in Turkey is expected to be the key manufacturing plant for global production and sales network across China, Southeast Asia and Turkey, making POSCO be the leading stainless maker in the world.