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

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

Here are the key takeaways.

The Future is Going to Look Very Different

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

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

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

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

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

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

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

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

What It Means for Car Manufacturers and Suppliers

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

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

These statistics pose critical concerns for automakers.

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

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

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

What Will This Mean for Vehicle Material Suppliers?

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

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

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

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

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

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

Cover photo courtesy of GOV.UK.

POSCO hosted the 2017 Global EV Materials Forum at the Songdo Global R&D Center in Incheon.

POSCO welcomed more than 380 local and overseas customers to the forum where they announced the current status of POSCO Group’s EV projects and strategies. The company also showcased its core EV technologies for high-value-added products such as motors, batteries and lightweight chassis/bodies.

During the forum, POSCO highlighted customer needs, market trends and development statuses in three areas: lightweight materials, traction motor cores and batteries. POSCO researchers also gave presentations on POSCO’s high-value-added products and solutions to share market insights and technological developments with the participants.

Participants listen to presentations at the 2017 Global EV Materials Forum.

In his keynote speech, In-hwan Oh, president of POSCO, said, “POSCO is in full preparation for the future of an electric vehicle ecosystem, to become a reliable partner to our customers.”

There were also external speakers at the forum, including Stephen Zoepf, Executive Director of the Center for Automotive Research at Stanford University, who spoke about “Electric Vehicles: Adapting to a Changing Marketplace.” Another external speaker was Martin Woehrle, senior director of BMW Korea, who gave a presentation on the trends in EV development.

In addition, POSCO held a separate exhibition at the venue consisting of four key product zones: motors, batteries, light-weight chassis/bodies and charging infrastructure. There was also an EV model on display in the Highlight Zone for a better understanding of the structure of EVs.

Visitors examine the electric Nissan Leaf

On display In the lightweight chassis/bodies exhibition zone was POSCO GIGA STEEL for lightweight chassis/bodies, which is lighter but much stronger than existing automotive steel sheets. Also on display was POSCO’s lithium materials for EV batteries; POSCO is the first company in Korea to commercially produce lithium for EV batteries.

In the motor zone was POSCO Daewoo’s a high-efficiency traction motor core for EVs made with POSCO’s Hyper NO, its highest-grade, non-oriented electrical steel. POSCO is already supplying it to major automakers.

The charging infrastructure zone showed POSCO ESM and POSCO Chemtech’s core materials of EV batteries, such as cathode and anode materials. In addition, POSCO ICT is the only company in Korea to provide a total-service electric vehicle charging infrastructure, including supply, installation and operation to membership management and supplementary services.

To close, POSCO pledged to become a “Total Solution Provider” for its partners in the auto industry bracing for the age of electric vehicles with its innovative technology, premium products and customized services.

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As many as 700 people attended the forum including POSCO Group affiliate employees, as well as those of POSCO’s major suppliers, outsourcing partners and AI-related professors. Notably, employees from Nastech and Korinox, where POSCO is carrying out smart factory support projects, participated as well.

POSCO CEO Ohjoon Kwon watching a presentation at the forum

“POSCO must continue to take up the challenge of implementing a smart POSCO in preparation for the dawning of the 4th Industrial Revolution. We will apply smart technologies to all processes of the steel mills, as well as to management areas such as finance, HR and purchasing to realize the concept of smart management,” stated POSCO CEO Ohjoon Kwon. “We will actively share the results of POSCO’s smartization process with our group affiliates and customers.”

Mi-hwa Park, head of the POSCO Information Planning Department added, “To realize a smart POSCO, we started the Smart Solution Council headed by our CEO last year, and identified 141 smart projects which applied Big Data and AI to solve practical problems. Approximately 600 employees participated in the projects and reduced costs by KRW 15.7 billion.” She added, “We will develop a POSCO-style SME smart factory model to support innovations for the manufacturing sites of our SME customers and suppliers. Furthermore, we will contribute to fostering SMEs and creating jobs by providing a lighter version of the PosFrame, developed by POSCO, as a customized smart platform for SMEs.”

POSCO CEO Ohjoon Kwon with the excellence award recipients

POSCO also recognized projects that applied Big Data and AI, for excellence in the steel production category. Out of the four, one improved the flatness of steel sheets and another provided improved technology for slab production. The “3D-based design/construction quality improvement” project that uses POSCO E&C’s Virtual Construction to predict risks, and the “power generation output through condenser performance diagnostics” project that can accurately detect errors in POSCO Energy’s power plants were also among those selected.

Forum participants were given an opportunity to experience POSCO’s smart solution platform PosFrame firsthand. PosFrame combines operational insights and IT technology to collect Big Data as well as process and monitor data in a way that allows participants to experience the reality of “Smart POSCO.” It was one of the most popular features of the forum among participants.

POSCO CEO Ohjoon Kwon looking at a PosFrame platform

POSCO also announced its plan to standardize the technologies and processes developed through smart projects, turn them into a technical package and actively incorporate them into its “Smart Solution” business to create added value.

Ki-won Na, CEO of Shinheung Automotive Co., Ltd., an automotive parts maker, said, “We received a lot of ideas applicable to our operations from the case studies presented today, and if we learn about POSCO’s Big Data analysis and utilization techniques in more detail and apply them, I expect it will greatly contribute to improving our productivity.”

POSCO joined hands with POSTECH to launch an advanced AI course earlier this year and is currently training 25 internal AI experts so that they can apply their AI knowledge in their field to solve problems and thus lead the way for a smart POSCO.

Also, POSCO has begun providing free AI education to young, underprivileged jobseekers in July and is now training 100 youths per year on both theoretical and practical knowledge. POSCO is also planning to support the customized SME smart talent development project, including practical education on AI and Big Data skills, for its customers and suppliers.

POSCO is actively planning to complete its smartization, meaning it will apply its “Smart Factory” to all processes of the steel mills, and carry out its “Smart Solution” business, which combines POSCO’s product technologies and services with smart technologies.

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The event was sponsored by the CSR Research Center of the Chinese Academy of Social Science – China’s most authoritative CSR evaluation agency. They evaluate corporate social responsibility and social contribution activities, releasing a corporate public interest development index and a CSR development index each year.

In addition, on January 6, POSCO China picked up the Educational Public Service Medal from the Chinese Enterprise Development Institute, the largest public interest group in China. A total of 31 domestic and international companies were selected as winners including Panasonic, Intel, and LG. POSCO was given the award in recognition for its affiliates’ scholarship programs and contribution to the preservation of traditional cultures in China.

With news of these awards, POSCO remains more committed than ever to working with the communities near its plants and offices in China. POSCO China plans to be even more active with CSR activities in 2017.

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Co-hosted by the Ministry of Education and four organizations including the Korean Society for Engineering Education, this event was prepared in order to share research findings related to engineering education and how it is contributing to the development of humanity.

In the keynote speech, Kwon defined “smart” as: “reinforcing POSCO’s competitiveness and creating new business by applying ICT to the best steel manufacturing technology based on extensive experience and know-how.” He announced that POSCO is now hitting its stride in building Smart Factory, an innovation in the manufacturing business. He also explained the cases of innovation in each country in response to the Fourth Industrial Revolution that is emerging as a big issue worldwide, and emphasized that there is a need for a new industrial classification scheme in line with the changing industrial paradigm. Furthermore, he defined “smart industry” as the territory that can create new added values by seeking convergence of industries with ICT knowledge.

“Korea is a powerful nation in IT and also has a competitive edge in manufacturing, particularly in steel, semiconductors, vehicles and shipbuilding,” said Kwon. “Accordingly, rather than merely increasing or decreasing the proportions of the manufacturing business, Korea should now enhance its industrial competitiveness and create a high value-added business model by applying a new form of advanced ICT and expanding to build a smart industry.”

Moreover, Kwon introduced POSCO’s smart solution platform PosFrame, which performs a key role in Smart Factory, and described a series of processes that can optimize self-learning and control by collecting and analyzing data within the process on a real-time basis.

With “Engineering Education for Smart Society” as its topic, the WEEF & GEDC event will be held until the 10th at COEX and KINTEX in Ilsan, Korea. This forum is for sharing research accomplishments in the industrial, academic and research sectors related to engineering education, and to discuss ways to develop engineering education with industry-academia cooperation toward realizing a smart society. This year marks the 6th anniversary of the forum since its foundation in 2011, and the first time to be held in Korea.

POSCO Looks to Internet of Things (IoT) for a Safer Workplace

POSCO’s Smart Factory: A Thinking Steel Mill

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Marking its eighth anniversary this year, VIETSHIP is the largest international exhibition in Vietnam and is hosted by the Ship Building Industry Corporation (SBIC). Approximately 130 shipbuilding companies and equipment suppliers from around the world, including POSCO (South Korea) and DAMEN (Netherland), participated in the exhibition.

Attended by major government and corporate officials including Nguyen Van Cong, Vice Minister of Transportation of Vietnam, and Nguyen Ngoc Su, Chairman of SBIC, the exhibition started with an opening ceremony followed by various events such as a forum for buyers.

POSCO’s Unique Energy and Shipbuilding Technology Attracts Vietnamese Interests

On February 24, the opening day of VIETSHIP 2016, Youngho Choi, Sales Manager of POSCO Vietnam Holdings, talks business with a representative of the Dung Quat shipbuilding company during the buyers’ forum.

 During the buyer’s forum, POSCO Vietnam Holdings introduced POSCO’s steel plate for shipbuilding and POSCO SS VINA’s shape steel products to buyers from 12 major Vietnamese shipbuilding companies.

They were especially impressed with the fact that shape steel, which is highly dependent on imports, can be supplied within Vietnam. Many buyers inquired about POSCO SS VINA’s product supply and new product development plans.

On the following day, a conference was held under the theme “Outlook for the Shipbuilding Market in Vietnam.” Jongkyo Choi, Group Leader of the Energy and Shipbuilding Materials Marketing Department of POSCO, captured the audience’s attention when introducing the company’s unique customer-oriented marketing strategies for the shipbuilding industry, such as welding technology for high strength steel and low temperature steel.

VIETSHIP provided a chance for POSCO to raise company awareness and discover new business opportunities, as over 200 buyers visited the company’s booth, showing great interest in POSCO SS VINA’s shape steel products.

Customers at the POSCO booth admire POSCO SS VINA’s shape steel products.

“We had no previous knowledge about POSCO SS VINA, so the exhibition provided a good opportunity to learn about its shape steel products,” said Thanh Xuan of Ha Long Shipbuilding Company.

POSCO Vietnam Holdings will strive to become not only a supplier of materials, but also a business partner that enables customer success through Solution Marketing.

About POSCO SS VINA

POSCO SS VINA began operations in June 2015. It currently produces high-quality steel reinforcement products, and is the only manufacturer of large- and medium-sized shape steel. The plant is located in Vung Tau—a region with a large demand for steel—as well as Ho Chi Minh, the country’s economic hub.

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Domestic and international customers and POSCO employees attend the first Hyper NO Forum, October 26-28, at the POSCO Center

Oh Inhwan, Head of POSCO Steel Business Division, opens the ceremony as the keynote speaker

During the opening speech, Oh Inhwan, Head of POSC Steel Business Division said, “We will strive to develop innovative technology and support solution marketing to apply POSCO Hyper NO to high-efficiency motors for wind power plants worldwide, electric vehicles and home appliances.”

Forum attendees look at the vehicles on display from global car manufacturers in the POSCO Center Atrium

The PR booth, just outside the Art Hall, promoting POSCO’s products and technology, capture the attention of attendees

During the forum, numerous car motors and home appliances which use POSCO’s non-oriented electrical steel were displayed, grabbing the attention of attendees. In particular, the motor technology used for newly popular eco-friendly vehicles such as electric vehicles and hybrid cars, received huge interest from global customers. POSCO committed to partnerships that will contribute to its customers’ competitiveness through sales and technology discussions of non-oriented electrical steel with global customers.

Electrical steel is divided into GO (grain-oriented electrical steel), which is used for transformers, NO (non-oriented electrical steel), which is used for motors and Hyper NO, which is the premium NO material, featuring high-efficient energy consumption and low noise. As higher demand for Hyper NO is anticipated in the future, POSCO plans to respond preemptively to market needs and the high-efficiency motor trend.

What’s POSTIM?
POSTIM is an innovative model developed by POSCO and applied in August 2014 to achieve the corporate vision of `POSCO the Great’. At the event, participants looked back on the efforts and traces of POSCO Family to implement `POSCO the Great`, and shared the progress results and best practices from POSTIM, which spans PWS (PJT-based Working System), QSS+ (Quick Six Sigma plus), and SWP (Smart Work Place). In addition, through the `Contest for an Excellent Project Idea`, they shared creative ideas from the shop-floor that can contribute to improving profitability, with a special awards ceremony to recognize the most promising ideas.

PWS (PJT-based Working System)
Many global companies such as Google, GE, 3M and more, are practicing various projects as they consider projects to be the key to efficiency. Through ‘Innovation POSCO 1.0’, POSCO has drawn a number of lucrative projects in each corresponding sector of production, sales, research, finance, new business and management support. By creating exclusive teams and members for projects, POSCO provided an optimal circumstance where project participants could concentrate on their tasks.

QSS+ (Quick Six Sigma plus) 
Ever since its completion in 1937, the Golden Gate Bridge in San Francisco carries a hundred thousand cars every day without facing any problem. Such durability is achieved by annual maintenance activities and recovery with adequate investments.

With 24-hour operating facilities older than two decades, POSCO also requires consistent management and investment in order to maintain its competitive edges. Accordingly, POSCO developed QSS+, innovative activities compatible for steel mills and has been strengthening its facilities in pursuance of a safe working environment. As POSCO deploys customized innovative activities by upgrading its core facilities, QSS+ plans are expanding with a plant manager’s lead. As QSS+ plans are settled, plants go through a major reconstruction or plan an independent activity that is appropriate to each department’s characteristic.

SWP (Smart Work Place)
From winning the 2014 UEFA Championship and 2014 World cup championship, Germany’s football teams are leading the paths of the world football. Behind such achievements, there were IT infrastructure and leadership that created positive atmosphere to the players.

Meanwhile, POSCO also embodies SWP (Smart Work Place) that promotes employees’ involvements through convenient IT infrastructure, advanced working method, and sharing gratitude. With the spread of mobile reporting system, working process has been expedited and video conference allowed meetings without limitations to time and space. Moreover, employees are using smart notes to immediately respond to client’s request and inconveniences on site. Improvements in reporting system extended task immersion and simplification in HR, training and innovation system also boosted employees’ focus on their accounts.

IP Festival 2014 Event Sketch
At the ‘IP Festival 2014’, executives and employees shared the outcomes and best practices from POSTIM. Groups and individuals who have displayed outstanding performance throughout the year were awarded at the event.

• Groups and individuals who had excellent project performance received awards

• Best cases of projects were introduced at the event

Let’s see what other interesting activities were shared at the IP Festival 2014!

• Employees are participating in a performance that they prepared during the break times

• Employees engaged in performances that induced participation in between each session

At the 2014 POSCO Global EVI Forum, more than 1,200 people from 500 global client companies attended and observed POSCO’s strong will to create customer value through its constant solution marketing. Under the theme of ‘From Steel Supplier to Solution Partner’, the forum’s main program, the Industrial Session, proceeded in six different categories: automobile, energy, shipbuilding, electronics, construction, wire rod and stainless. In our previous blog post on 2014 POSCO Global EVI Forum, we introduced the overall activities and content of the event. Today, we would like to share more detailed descriptions of the forum and interviews with POSCO’s global client companies.

1. Topics Of The Six Industrial Sessions

Automobile – ‘Steel Solution For Eco-Friendly Cars Of The Future’
The automobile session started with DPCA (Dongfeng Peugeot-Citroën Automobile) and Volkswagen’s keynote speech on the trend of vehicle weight reduction and its technical development. Following the speech, POSCO’s automotive structural steel development, Nissan’s environment-friendly activities and weight reduction technology development, Ford-India’s business status and POSCO-Maharashtra’s localization strategy were introduced. In addition, Volkswagen presented a research on automotive high-manganese PosM Steel deformation behavior while Austem demonstrated its development state of magnesium seat cushion pan through form analysis.

Energy & Shipbuilding – ‘Steel Material’s New Pursuit In The Oil· Gas Industry’
The energy and shipbuilding session started off with ForceTEC’s keynote speech which introduced Daewoo Shipbuilding & Marine Engineering’s development on high manganese steel LNG tank and the new pursuit of steel materials within the oil and gas industry. Also, as examples of solution application, large container ship brittle crack arrest solution developed by Samsung Heavy Industries and semi-submersible floating structure of an American company, Principle Power Inc.

Construction Session – ‘Introducing The Application Of High-Strength Steel In Construction’
Under the topic of ‘Extensive Establishment of Global Solution in the Construction Market’, the keynote speech of the construction session was brought by LERA on the application cases of high-strength steel in construction whereas, K&C Engineering company from America introduced a blast-resistant design of high-performance steel. Also, Bandung Institute of Technology of Indonesia presented the basic design of the Sunda Strait Bridge. 

Electronics Session – ‘Sharing The Design Of High-Strength Steel Home Appliances’
The electronics session focused on the topic of ‘design of high-strength steel home appliances and electrical steel sheet technology for high-efficiency product development’. IHS Energy and Power Consulting presented on the display industry issue and perspectives while Korea Electronics Technology Institute (KETI) delivered a keynote speech on ‘electric motor technology trends and electrical steel sheet’s requirement’. Additionally, TCC Steel introduced case studies of POSCO steel material utilization whereas Siemens proposed about a power transformer’s DC compensator.

Stainless Session – ‘Creating The Safe, Eco-Friendly And Sparkling Stainless World’
With a general topic on ‘solution marketing for the safe, eco-friendly and sparkling stainless world’, the stainless session initiated with POSCO Research Institute’s keynote speech on the trends of global competition in the stainless steel industry and Dgenx’s proposal on its automotive exhaust system. Moreover, POSCO reported about the development trend of new stainless steel product.

Wire Rod Session – ‘Reporting The Development Trend Of High-Strength Cable For Bridges
The wire rod session which was held under the topic of ‘solution marketing and shared value of the global era’, opened with French specialty contractor, Freyssinet’s presentation on the development trend of high-strength cable for bridges’. Subsequently, Denmark COWI’s applicable technology trends and Nissan’s long steel quality improvement activities were introduced. Also, POSCO’s global sales strategy and R&D activities for wire rod sector were presented at the session.

2. Special Interview With POSCO Clients At The Global EVI Forum
Let’s check out what POSCO’s clients at the event would like to share about POSCO and this year’s EVI forum.

2-1 Nam-Jun Park, Managing Director Of KISWIRE

How Would You Describe The Cooperation Between POSCO And KISWIRE?
POSCO and KISWIRE have been engaging in cooperative activities such as the strategic development of potential items for more than 10 years now. And the long-term business cooperation has recently achieved a fruitful result. It was especially more meaningful to present the cooperation history of POSCO and KISWIRE at the forum session.

What Special Meaning Does Solution Marketing Have On KISWIRE?
As a project management format management structure, KISWIRE has been actively engaging in development activities from product order to finished product for a long time. Nowadays, this would be called ‘solution’ or ‘solution marketing’. Rather than focusing on each individual problem with a myopic perspective, looking at a larger picture while providing a diverse choice of solutions to clients and displaying a pioneer spirit in the given field can be considered as ‘solution’ in a broad sense. 

What Are Your Expectations For POSCO In The Future?
Through this year’s forum, I was able to reconfirm POSCO’s great efforts on solution marketing at the corporate level and POSCO’s strong will to actively share it with client companies. Also, as a client myself, I was inspired by CEO Kwon Ohjoon’ s keynote speech to hold an expectation that POSCO will be supportive to solve the client’s issues together. I hope POSCO can actively coordinate with clients on developing and creating the market in the future.

2-2 Prof. Dr. Ir. Iswandi Imran, Structure Engineer From Faculty Of Civil And Environmental Engineering Of Bandung Institute Of Technology 

How Is POSCO’s Solution Marketing Related To Your Presentation At The Forum?
During the construction session, I made a presentation on the foundational design of the Sunda Strait Bridge (JSS) which will be connecting Sumatra and Java islands in Indonesia. Today, POSCO’s high-strength steel technology has developed further compared to my research result announcement which was two years ago. Numerous hazards exist on site since the Sunda Strait contains deep sections of more than 60m in depth and towers are constructed on an extremely steep sea bottom. However, with POSCO’s solution, which is the high-strength steel of 2200MPa strength, the problems of risk factors are resolved.

Is There Any Perspective Plan To Cooperate With POSCO?
On November 11^th, a seminar hosted by Himpunan Ahli Konstruksi Indonesia (HAKI) and supported by Indonesia’s Institute of Road Engineering (IRE) will be held in Jakarta. On the very next day, POSCO and Bandung Institute of Technology will be signing a MOA. I hope for a progressive and constructive cooperation plan can be established. It will be a great opportunity to exhibit POSCO’s brand value, outstanding technology, POSCO- Krakatau and more.

What Are Your Expectations For POSCO In The Future?
POSCO-Krakatau embodies a significant meaning since it is the very first blast furnace steel mill founded in Southeast Asia. I hope this MOA will develop as an outlook to solidify the relationship as students of Bandung Institute of Technology visit POSCO-Krakatau and learn about the steel production process.

Introducing POSCO’s Global EVI Forum

EVI (Early Vendor Involvement) is an activity, initiated by finished vehicle companies, brings the key auto parts companies to participate in new model development projects. The POSCO EVI Forum, which started as a domestic auto market target event, has been developing into a global event where various industry fields and global client companies participate in; also expanding the contact points with POSCO’s clients in the meantime. Currently, the event is positioning as client-oriented marketing festival to strengthen business partnerships with customers, while facilitating interaction and exchange with potential global clients.

Presentations and Discussions of Six Major Industrial Programs

During the general session which also includes the opening ceremony on the 28^th, Remi Bastian, Renault’s head of research, advanced studies and materials, Sungho Park, POSCO’s Director of Research Center and Raghavan Ayer, SK innovation’s Science Advisor and Senior VP made presentations on industrial topics. Except for the opening ceremony and the general session, the discussions were arranged into six major industrial programs, including automobile, energy, shipbuilding, electricity, electronic, construction, stainless, and wire rod.

Each session’s presentation and discussion on ‘Steel Solution for Eco-friendly Vehicle of Now and Future’, and ‘Energy·Shipbuilding Solution for Client’s Best Value’ intensified the concentration and communication among clients and participants at the event. There were hosted discussions about industrial technology trends, followed by topic-based presentations. Noteworthy examples included a presentation on technology development designed to lighten the weight of automobiles that was undertaken by Volkswagen in Germany; the development of Hadfield steel LNG tanks from Daewoo Shipbuilding & Marine Engineering and the usage of wire rods in the marine industry by KISWIRE.

Also, the forum provided a special location to global clients of each session for technology consultation and purchase agreement, presentation and discussions. In fact, POSCO successfully established positive relationships with global clients through the technology consultation and sales agreement were proceeded for two days from the 27^th to the 28^th.

Focus on Renault’s ‘EOLAB’ of POSCO Chassis

As a rapid adaptation to the trend of European auto industry, Renault has recently introduced its hybrid concept car ‘EOLAB’ (a compound of the Greek god of wind ‘Aeolus’ and the English word ‘laboratory’) which contains POSCO’s steel products. Therefore, the unique technologies of POSCO were praised, including its lightweight· high strength products, which were used in the ‘EOLAB’ prototype. Other noteworthy additions included POSCO’s magnesium plating and PosM Steel, which received much attention from global client companies.

As a result, POSCO was able to sign various technology agreements and sales contracts during the automobile session which is one of the six industrial programs at the forum. Also, POSCO pursued a long-term cooperation with domestic and global companies of the finished vehicle and key auto parts at the same session of the forum. Moreover, POSCO agreed on technology cooperation and joint marketing activities with key domestic and global client companies for shipbuilding, construction, electronic appliance and wire rod.

Creating Successful Partnership through POSCO’s Solution Marketing

Also, this year’s forum has acquired a favorable comment by creating a special counter for POSCO’s solution business introduction and registration for the clients’ request on solution development. Even after the 2014 Global EVI Forum, POSCO promises to continue to seek for practical approaches to the customer value creation. Also, POSCO will further reinforce its growth foundation with clients by amplifying the solution marketing not only to domestic clients but also to distinguished global client companies.

In the next episode of our global blog’s Global EVI Forum series, we will introduce the in-depth explanations of each forum session and interviews with our client companies. So, please stay tuned with us!