Are you curious about the lives of POSCO’s overseas expatriates who enjoy working and leisure in an exotic environment? POSCO Newsroom reports on the local lives of overseas expatriates. In Place 3, we’ll introduce Kyung-Eun Yoo from HR and General Affairs, and Ye-Sol Kim, an engineer in the Production Safety Department, both working at Ultium CAM, a joint venture between POSCO Future M and General Motors (GM) that focuses on the production of cathode materials for GM’s electric vehicles.

[Kyung-Eun Yoo] :  Hello, I am Kyung-Eun Yoo, an expatriate who has lived in Bécancour, Quebec, since July 29, 2023, and I work in the HR and General Affairs department at Ultium CAM. Ultium CAM is a joint venture between POSCO Future M and General Motors to produce cathode materials for GM’s electric vehicles. Ultium CAM is currently building a cathode material plant with an annual capacity of 30,000 tons, with the goal of completion by 2025.

Bécancour, where Ultium CAM is located, has strategically developed into a battery-specialized industrial hub known as the Société du parc industriel et portuaire de Bécancour (SPIPB). Ultium CAM is the first factory being established in this industrial park, and has received significant support and attention from the city.

In my role, I collaborate with local employees on HR planning, system operations, public relations, and government relations so that our expatriates adapt well and are focused on their work.

[Ye-Sol Kim] :  Hello, I am Ye-Sol Kim, an engineer who started my expatriate journey at Ultium CAM on the same day as Gyeong-Eun Yu. I am part of the Production Safety Department, responsible for sourcing the maintenance, repair, and operation (MRO) materials needed for the operation of the plant. MRO encompasses everything from bolts and nuts to critical equipment components such as filters and meshes, all of which require periodic maintenance and replacement for smooth operations. I also oversee the review of local safety and environmental regulations and have recently been involved in training new local employees on process protocols.

[Kyung-Eun Yoo] : With a major in French studies, I was keen to find a company where I could use my language skills. That’s when I discovered POSCO Future M’s global talent recruitment program, which seeks to merge knowledge in the humanities, social sciences, natural sciences, and engineering to create new value. This program prioritizes overseas assignments for those with proven competence. I joined POSCO Future M with the hope of someday working at Ultium CAM, where French is the working language. When the opportunity arose, it felt almost destined, and I eagerly embraced the chance to contribute to the company’s growth with my French proficiency.

Although I had studied French extensively and believed I understood Francophone culture well, the strong affinity for the language in Quebec was initially a surprise. I realized that with Quebec’s prioritization of the French language as its foremost value and the legal requirement for global companies such as Ultium CAM to use French, the initial establishment of Ultium CAM might not be an easy process.

However, after speaking with locals and studying their history, I gained a deep appreciation for their efforts to preserve their linguistic and cultural heritage in a predominantly English-speaking country. I realized that truly understanding and respecting Quebec’s love for the French language could pave the way for Ultium CAM to become a beloved company in the region.

In North America, recruitment is often conducted on a rolling basis, so companies tend to use professional sites like LinkedIn for hiring rather than open recruitment or campus recruiting as is common in South Korea. Ultium CAM had relatively low recognition in the region, which posed a significant challenge as we deliberated on how best to raise the company’s profile. To raise Ultium CAM’s local profile, we organized various events in the Bécancour area to officially introduce the company to the community. At one such event, I had the honor of representing Ultium CAM and presenting our business operations entirely in French, given the limited English proficiency of the local audience.

We operated booths at recruitment fairs in Montreal and Trois-Rivières, and also hosted Ultium CAM hiring events throughout the Bécancour area. I mainly introduced our processes and products to local job seekers in French. During these events, I received numerous detailed questions about the characteristics of our products and the work environment, and the broad knowledge and experience I gained from the integration training after joining the company was very helpful.

Ultium CAM’s workforce is diverse, and not only has employees from Quebec, but also from Latin America, Asia, and other regions. As a result, effective communication requires genuine respect for different cultures, rather than just language skills. When I learn something new about Quebec culture, I usually share it by saying, “In Korea, we do it this way, but in Quebec, it is done like this, and this is one of the differences between our two cultures.” Alternatively, I might ask, “In Korea, we do it this way, how is it done in Quebec?” This approach helps spark conversations about the cultural differences between the two countries. I make it a point not only to engage in casual conversations but also to discuss work-related challenges with my colleagues with the aim of building strong rapport (mutual trust).

Additionally, I have gained insights into cultural differences that might be less familiar in Korea, such as a preference for cohabitation over marriage, a strong emphasis on privacy that makes people reluctant to share personal details such as age, marital status, or children, and various dietary practices driven by religious or personal beliefs. These cultural nuances have been thoughtfully integrated into our recruitment processes and HR policies to help us adapt our company’s systems to the local context.

In addition to Ye-Sol Kim and myself, four other colleagues from the interdisciplinary talent program (including Min-Young Bong in Maintenance and Hye-Yeon Lee in Technical Quality) are also part of the Ultium CAM team. Each of us serves as a bridge inside and outside the production, maintenance, and quality departments, while also supporting construction efforts. Using our overseas education and work experience, we provide interpretation in meetings and actively participate in on-site discussions with contractors and suppliers.

One of the most rewarding aspects of working at Ultium CAM is the opportunity to use our diverse experiences and knowledge in departments to overcome language and cultural barriers and unite as a cohesive team.

[Ye-Sol Kim] : I majored in French Language and Literature and Economics in college. Like Gyeong-Eun Yu, I joined POSCO Future M through the global talent recruitment program. Although I thought I could adapt well to life as an expatriate because I had many foreign friends, I was initially worried about forming professional relationships with foreign colleagues. However, my fluency in English and French helped me quickly bond with local employees through small talk. Indeed, nothing bridges social distances like sincere conversations.

Ultium CAM is currently building a plant with an annual capacity of 30,000 tons of cathode materials. It is receiving a lot of attention locally because it is a key player in the future electric vehicle battery industry and a Carbon Reduction, wastewater-free facility. My responsibilities include developing strategies for waste management with a focus on converting waste into resources rather than resorting to landfill or incineration. We are also negotiating with battery recycling companies to sell process waste containing valuable materials such as nickel and lithium.

I am also in charge of localizing the equipment and materials used in the plant. Ultium CAM is the first cathode material plant in North America, so it has been challenging to find suppliers that meet our specifications since there are few companies that specialize in electric vehicle battery materials in the region. To address this, I have been actively participating in local supplier exhibitions with the procurement team to find companies that can supply materials that meet our requirements. I was so engrossed in reviewing equipment drawings and manuals that the days flew by without even noticing.

Recently, I had the opportunity to visit Korea with local managers and engineers from Ultium CAM for a cathode material technology training program. We spent four weeks at the Talent Development Center in Songdo and Pohang, as well as at the cathode material plants. The employees who accompanied me and I had a very productive time touring the sites, asking questions, and exploring ways to establish a robust battery value chain in Quebec similar to those in Pohang and Gwangyang.

This technical training program was tailored to specific roles in operations, maintenance, and quality, so we were able to acquire the practical skills necessary for plant operations. It also provided a deeper understanding of POSCO Group’s corporate culture, which greatly enhanced our sense of belonging as POSCO members. As a Korean, I was genuinely surprised by how thoroughly the technical skills were taught during the training. The foreign employees said that they appreciated the opportunity to directly experience and understand the work environment and culture of a Korean company through the training. Now everyone is back in the country and working hard to apply the knowledge and skills they acquired from the training to the plant.

[Kyung-Eun Yoo] : Bécancour, where I work, is a small town. On my days off, I love exploring local eateries with colleagues and eating various local dishes. Its picturesque scenery and the laid-back, friendly nature of its residents make working here very enjoyable.

One spot I highly recommend is Coconut Bar, a long-standing pub in Trois-Rivières where many expatriates reside. This pub has been around for decades and holds the nostalgic memories of the mothers and grandmothers of local employees. When you enter, the staff greet you with Hawaiian-style flower leis, and the tropical décor, complete with statues and fountains, transports you from snowy Canada to a summer paradise. It is no wonder that local employees often say, “If you’re in Trois-Rivières, you must visit Coconut Bar.”

What makes Coconut Bar even more special is that we hold a welcome gathering there every time a new employee joins the HR and General Affairs team at Ultium CAM. The first day at a new job can be nerve-wracking, but sitting at the bar and chatting with colleagues helps break the ice and ease the tension. I vividly remember when my colleagues recorded a birthday video for my mother in French at Coconut Bar. It was the first time she received such a global birthday greeting, and she was absolutely thrilled, saying it would be a cherished memory for years to come.

While I thoroughly enjoy discovering new local delicacies, there are times when I miss Korean food. In that case, I either visit a Korean restaurant in Montreal or prepare Korean dishes with ingredients from a local Korean grocery store to share with my fellow expatriates. As we reminisce about our experiences in Korea and discuss all the things we want to do when we return, time seems to fly by.

[Ye-Sol Kim] : Living as an expatriate often brings a variety of new and diverse experiences. It can sometimes be hard to navigate new procedures and processes at work, but the everyday moments and memories I have made along the way make each day enjoyable. We currently work out of temporary offices because the Ultium CAM office building and cafeteria are still under construction. We all bring our packed lunches and eat together, and one day, a local colleague who noticed that I was eating cup noodles every day surprised me with a generous serving of a local delicacy, salmon marinated in maple syrup. Although the idea of sweet syrup on fish seemed odd at first, it tasted far better than I expected. In return, I prepared a Korean dish to share with my colleagues, which they thoroughly enjoyed.

It frequently snows in Bécancour because winter lasts for about half the year. I wasn’t particularly fond of winter in Korea, but since I moved here, I have come to appreciate the season by snowmobiling, cross-country skiing in the parks, and ice skating on the frozen lakes with my colleagues. During the summer, I often play pickleball, a sport introduced to me by local staff. It is a blend of tennis, badminton, and table tennis, and I find that hitting the ball with the paddle is a great way to relieve stress.

[Kyung-Eun Yoo] : POSCO Future M’s Ultium CAM is currently in the early stages of plant construction, so it is not well recognized locally. As a member of the HR and General Affairs team, my goal is to make sure that everyone in the Bécancour area knows about Ultium CAM. We will hire more employees after the plant is completed, and my biggest goal is to build a unique organizational culture at Ultium CAM that blends Korean and Quebecois cultures with the participation of all employees.

Finally, for those considering a career at POSCO Future M Ultium CAM, I encourage you to face the challenge with confidence. While there may be difficulties, the new and exciting experiences will far outweigh them. So, to all of you, Aie du courage (have courage)!

[Ye-Sol Kim] : Engineering work tends to have a clear direction regarding problems and solutions. It requires extensive on-site experience, including a deep understanding of equipment and processes, as well as the ability to handle and resolve a wide range of issues, so I continually study whenever I get the chance. I will continue to do my best in Canada until the Ultium CAM plant, which I have watched from the construction phase, is successfully completed and begins producing 30,000 tons of cathode material annually.

The first electric vehicle to fully utilize both anode and cathode materials from POSCO Future M, maximizing driving range and fast-charging capabilities.

Incorporating POSCO’s Giga Steel, ultra-high-strength, and electrical steel ensures top safety ratings and superior driving performance.

To mark the domestic launch of the Cadillac luxury electric vehicle ‘Lyriq,’ which extensively utilizes POSCO Group’s secondary battery materials and steel products, POSCO Group and GM hosted a joint promotional event.

On the 26th, both companies displayed the ‘Lyriq’ at the POSCO Center in Gangnam, Seoul, offering test drives and purchase consultations to POSCO Group employees and nearby professionals.

The event was attended by Yoo Byeong-og, President of POSCO Future M; Seo Yu-ran, Head of POSCO’s Automotive Materials Marketing Division; Hector Villarreal, President of GM Korea; and Tommy Hosea, Vice President of GM’s Global Operations Purchasing and Supply Chain. It commemorated the launch of this electric vehicle, a product of the collaboration between POSCO Group and GM.

The Lyriq, the first model based on GM’s next-generation modular electric vehicle platform ‘Ultium,’ is also the first electric vehicle to fully integrate both anode and cathode materials from POSCO Future M. It features a battery pack comprising 12 modules, each containing battery cells made from POSCO Future M’s anode and cathode materials.

The Lyriq’s battery uses high-nickel NCMA* cathode materials, known for high energy density, enabling a driving range of up to 465 km on a full charge. POSCO Future M successfully mass-produced NCMA single-crystal cathode materials domestically for the first time in March last year. The anode material employs low-expansion natural graphite anodes, which improve high-speed charging performance, stability, and lifespan compared to conventional products. The Lyriq supports DC fast charging with up to 190 kW output, allowing approximately 120 km of range with a 10-minute charge.

*High-nickel NCMA cathode: A cathode material comprising nickel, cobalt, manganese, and aluminum, with an increased nickel ratio to enhance battery energy density, thermal stability, and output.

*Low-expansion natural graphite anode: An anode material that shifts from a plate-like to an isotropic structure, accelerating lithium-ion movement and reducing expansion, thereby improving charging speed, stability, and lifespan.

The Lyriq also incorporates POSCO’s ultra-high-strength steel and electrical steel products. Its body and chassis use Giga Steel (tensile strength over 980 MPa) and ultra-high-strength steel, earning the highest safety rating of 5 stars from the National Highway Traffic Safety Administration (NHTSA) in the U.S., enhancing strength, workability, and environmental friendliness.

The drive motor features high-efficiency, non-oriented electrical steel* ‘Hyper NO,’ reducing energy loss and delivering top-tier driving performance among its peers. POSCO is the sole domestic producer of high-efficiency, non-oriented electrical steel, a material requiring advanced technology, with only a few global steelmakers, including POSCO, capable of providing stable quality.

*Non-oriented electrical steel: Used in motors to enable rotational motion via electrical current. Thinner materials minimize energy loss during motor operation. The Lyriq’s main motor employs 0.25mm thick Hyper NO, achieving 500 horsepower and 62.2 kgm of torque.

The Lyriq, optimized for performance and efficiency with POSCO Group’s top-tier battery materials and steel products, showcases a harmonious blend of stable, agile driving performance, a new design language, and next-generation technology under the Cadillac brand, standing out in the global market. In the first quarter of this year, the Lyriq ranked first in sales among single models in the U.S. luxury electric vehicle market.

Yoo Byeong-og, President of POSCO Future M, expressed, “We hope that the Lyriq, a product of the collaboration between POSCO Group and GM, will continue its success in Korea following its achievements in the U.S. POSCO Future M will continue to develop and reliably supply high-performance battery materials, leveraging our advanced technology, to support GM in leading the electric vehicle market.”

Additionally, POSCO Future M and GM continue strengthening their cooperation to establish a stable battery material supply chain in North America. In May 2022, they established ‘Ultium CAM,’ the first joint venture between a battery material company and an automaker. They plan to complete a 30,000-ton capacity cathode material production plant in Quebec, Canada, in the second half of this year. To strategically respond to regional supply chain enhancement policies such as the U.S. Inflation Reduction Act (IRA), they also plan to expand a cathode material plant and establish a precursor plant, a critical intermediate material for cathodes, in North America by 2026.

▲In celebration of the domestic launch of the Cadillac luxury electric vehicle ‘Lyriq,’ extensively incorporating POSCO Group’s secondary battery materials and steel products, POSCO Group and GM held a joint promotion at the POSCO Center in Seoul. Pictured are Yoo Byeong-og, President of POSCO Future M (right), and Hector Villarreal, President of GM Korea, sitting inside the Cadillac luxury electric vehicle Lyriq.

▲POSCO Group and GM organized a joint promotion at the POSCO Center in Seoul to commemorate the domestic launch of the Cadillac luxury electric vehicle ‘Lyriq,’ featuring extensive use of POSCO Group’s secondary battery materials and steel products. From left: Yoo Byeong-og, President of POSCO Future M (left), Tommy Hosea, Vice President of GM’s Global Operations Purchasing and Supply Chain, and Hector Villarreal, President of GM Korea (right), celebrating the launch of Lyriq.

▲On the 26th, POSCO Group and GM showcased the Lyriq at the POSCO Center in Gangnam, Seoul, and held a joint promotional event in honor of the domestic launch of the Cadillac luxury electric vehicle ‘Lyriq,’ extensively featuring POSCO Group’s secondary battery materials and steel products. From left: Seo Yu-ran, Head of POSCO’s Automotive Materials Marketing Division; Hector Villarreal, President of GM Korea; Yoo Byeong-og, President of POSCO Future M; and Tommy Hosea, Vice President of GM’s Global Operations Purchasing and Supply Chain.

Since 2014, sales of products combined with Solution Marketing have tripled, and sales of POSCO’s World Premium Products (WPP) have increased by 56 percent.

It Wasn’t Always Smooth Sailing

When the 2008 global financial crisis hit, the global economy as a whole suffered. The steel industry experienced stagnant growth, even in its subsequent recovery. From 2012 to 2016, annual steel sales remained fixed at 35 million tons.

The 2008 Financial Crisis was felt in markets all over the world. (Source: South China Morning Post)

The main culprit for the slow recovery was overproduction, mostly from the heavily-subsidized Chinese steel industry. Between 2000 and 2014, steel production doubled from 800 million to 1.6 billion tons, exceeding the global demand for steel by 100 million tons.

As a result, steel markets around the world saw prices falling, layoffs and steel mill closures.

SEE ALSO: Asian Steel Watch: Megatrends Shaping the Future of the Steel Industry

A Strategy for Success

In order to stay competitive in a stagnant market, POSCO made the decision to focus on Solution Marketing and the sales of its World Premium Products (WPP) such as POSCO GIGA STEEL for cars and PosMAC for solar panels.

Solution Marketing involves hyper-customization for POSCO’s partners to deliver optimal material solutions for their products. Some notable projects this year have been with automakers GM Korea and Ssangyong Motors for the launch of their new models made of POSCO GIGA STEEL. POSCO gave them full support from development and R&D to testing and post-production evaluations, redefining the role of a steel supplier.

GM Korea and POSCO worked together to incorporate POSCO GIGA STEEL into the 2017 All New Chevy Cruze. (Source: GM Korea)

As a result, POSCO’s operating profit margin (individual basis) was 10.8 percent in 2016, making it one of the highest performing steel companies in the world. Its recovery and growth continued into 2017.

SEE ALSO: 6 Reasons Why POSCO GIGA STEEL is Ideal for Automakers

Cultivating the Industry

Following its continued success with Solution Marketing, POSCO is now determined to share its insights and technology with up and coming small and medium-sized enterprises (SMEs). POSCO has completed 32 shared-growth projects through which they work with SMEs to develop ways to cut costs, improve the quality of their work, provide financial assistance and education and training.

One of the most recent projects for shared growth is a collaborative business model called “System Construction” that provides a framework for effective technical cooperation among POSCO’s partners in the construction industry. The model was developed jointly with NI Steel and entails systemizing composite materials such as beams, floor decks, exterior panels and roofing materials, all based on joint R&D from both parties.

Under System Construction, workers from various sectors come together for joint development.

POSCO is continuing its efforts to advance its competitiveness by providing material and technical solutions to its partners, and along the way, fostering the growth of SMEs in various industries to ensure a more stable and robust economy.

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.

Each year, GM Mexico evaluates its partners on 13 criterion, including process, quality and delivery for the Quality Excellence Awards.  

Gabriela Ruiz Osorio, POSCO-MPPC 2 plant manager, and Tae-hyun Yoon, head of POSCO-MPPC, receive the Supplier for Quality Excellence Award from GM Mexico

POSCO-MPPC received the highest grades in all areas of evaluation and was the only recipient in the local steel materials processing and supply category.

Over the years, POSCO-MPPC and GM Mexico have worked closely together to meet project deadlines and maintain a high standard of product quality. On one occasion, POSCO-MPPC dispatched a team of engineers to the GM San Luis Potosi (GM SLP) plant to address quality issues and quickly resolved defects in cooperation with the Technical Service Center (TSC). As a result, POSCO-MPPC received zero Problem Reporting & Resolutions (PRRs) and parts per million (PPM).

POSCO-MPPC produces and supplies as many as 43 blank products, including outer body plates for use in compact sedans and SUVs such as GM SLP’s main production models, the TRAX and AVEO.

Going forward, POSCO-MPPC hopes to establish itself as a global automotive steel plate supplier and continue to secure orders in the Mexican market. POSCO-MPPC is also planning to capitalize on its quality competitiveness to increase sales and reinforce its status as the best steel processing corporation in North America.

POSCO-MPPC has come a long way since the completion of its Plant 1 with a 170,000-ton capacity in Puebla in 2007. It then completed Plant 2, also with a 170,000-ton capacity in San Luis Potosi in 2008, and Plant 3 with a 130,000-ton capacity in Celaya in 2013.

It continued to expand in 2016 when it merged with MAPC, a processing corporation exclusively for Nissan Motor Corporation, and increased the blanking capabilities of Plant 3.

Currently, POSCO-MPPC provides premium-quality steel to its partners with an annual processing capacity of 630,000 tons.

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The opening of the POSCO America office in Atlanta was attended by more than 30 VIPs, including embassy dignitaries, POSCO executives, and customers.

Previously located in New Jersey, POSCO America’s move to Atlanta puts it in the center of the economic hub of the southeast region of the US and strategically close to the growing automobile and energy industries. The annual demand for steel in the southeast accounts for about 38% of the US’s total demand of 41 million tons. In addition, lower labor and logistics costs are helping the southeast revive the US manufacturing industry.

Many of POSCO’s customers are also concentrated in the southeast, including Hyundai, Kia, Kiswire, Caterpillar, GM, Honda, and other auto parts companies. Because Atlanta has become a transportation hub both regionally and nationally, it will be easier for POSCO to secure highly-skilled workers while also taking advantage of the inland transportation systems that provides easier access to key cities such as Houston, Mobile, New Orleans, Wilmington, and more.

POSCO America is laying the groundwork for an increase in demand for steel in the southeast region of the US. The office will act as a forward base for POSCO’s exports and contribute to the development of the region by creating demand for high-grade steel. Moreover, moving beyond the role of a basic steel provider, POSCO America will provide high-quality customer service in real time, becoming a “Total Solution Provider,” working closely with its sales offices in Detroit, Houston, and Mexico, as well as its regional technical service centers.

Since its establishment in 1984, POSCO America has been exporting its products to the Americas and managing local joint venture corporations. The office will act as the regional headquarters of POSCO America with over 40 employees working to support sales and technical teams for regional clients while also helping to support POSCO’s affiliates and subsidiaries in the US.

POSCO America represents 24 corporate investments, subsidiaries, and affiliates in the Americas. Major production and sales subsidiaries in the Americas include POSCO Canada which mines and sells coal from Canada; UPI, a joint venture between POSCO and US Steel; the Alabama Coil Production Center; POSCO Mexico, which produces and sells plated products; and CSP, an integrated steel mill jointly founded with Dongkuk Steel, which produces and sells slabs. As POSCO Group affiliates, POSCO Daewoo and POSCO E&C are active throughout many places in the Americas.

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GM plans to launch its plug-in hybrid car (PHEV) “Bolt” during the second half of this year. PHEV is a hybrid car that runs on an electric motor, which can be recharged by plugging it into an electrical power source. It switches to run on the combustion engine when the batteries are depleted.

POSCO ICT plans to build EV-charging stations at 120 key locations as the business partner of GM Korea and will also implement a related membership program.

As POSCO ICT has been selected as the producer of EV chargers for GM Korea, it plans to provide charging services with public charging stations at 120 key locations. Locations will include after-sales centers, GM sales stores, and big marts.

On top of public stations, it is building home charging stations for drivers of GM’s EV and is also implementing a membership program. Through this program, drivers can use the existing charging stations available at big marts, cinemas, and department stores across the country in addition to newly built stations.

 Expansion of the facility to 300 stations to become largest privately-owned infra

Apart from the 120 stations to be built under the deal with GM, POSCO ICT will increase the number of its own stations from 250 to 300 by the end of the year, making it the owner of the largest privately-owned EV charging infra.

It will build and run the infra by targeting the facilities that drivers visit often and spend time at. Drivers will be able to charge their car by driving only 4 to 5 km each time.

The Ministry of Trade, Industry and Energy recently announced that it would build high-speed charging stations, one within each 2-km radius, at key locations such as petrol stations, large supermarkets and parking lots in Seoul and Jeju by the end of this year. A total of 490 charging stations will be established. Since the Ministry will also build a total of 30,000 slow chargers at 4,000 apartment complexes across the country, the spread of electric vehicles in Korea is likely to be accelerated.

The interest in the electric vehicle is increasing due to climate environmental issues and the strive towards energy reduction. POSCO ICT will further expand its cooperation with electric car manufacturers in order to grow the charging infrastructure, no longer hindering the spread of electric vehicles within the country.

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One area where POSCO is demonstrating the power of Solution Marketing is the automotive sector, where the company’s World Premium (WP) products are creating better vehicles by collaborating with manufacturers. For Ssangyong Motor with the Tivoli Air, Renault-Samsung with the SM6 and GM with the newest Malibu, all are enjoying major new successes, thanks in no small part to POSCO’s ultra high-tensile steel.

What Is ‘Solution Marketing’?

POSCO CEO Ohjoon Kwon introduced Solution Marketing in 2014, quickly gaining notice in the industry for this customer-first approach to the business. “In the automotive industry, steel needs to high strength in order to reduce the amount of it used in each vehicle and to minimize the vehicle’s weight,” said CEO Kwon. “However, because high-strength steel lacks formability, companies often find it difficult to apply high-strength steel to their products. So it is not sufficient for the manufacturers of high-strength steel to simply provide their product. They also need to provide molding and welding. Solution marketing means providing the steel in the best shape and the best condition for their customers.”

But more than just solution marketing, it’s about working with people to provide the solutions they need for their lives. For POSCO, this means strengthening sales capacity by introducing human solutions, to reach customers in a friendlier way.

Tivoli Air Shows the Power of POSCO’s World Premium Steel

The Tivoli SUV is the key model of Ssangyong Motor, enjoying great popularity since it was launched in Korea last year. Selling 64,000 cars already, the Tivoli has become the No. 1 selling vehicle in the compact SUV category in Korea, and a prime example of the benefits of Solution Marketing. Thanks to strengthening ties with Ssangyong, last June POSCO signed a memorandum of understanding to further enhance their strategic partnership.

One successful result of that agreement is the Tivoli Air, a long-body version of the popular vehicle and one that uses 71.1 percent POSCO World Premium ultra high-tensile steel in its body—much higher than most compact SUVs, which typically use 50 percent high-strength steel. World Premium (WP) ultra high-tensile steel is recognized for its high quality, with relatively simple figuration, light weight and great strength. The strength of this World Premium steel improves the safety performance and makes for a lighter vehicle, which improves performance and reduces emissions.

And to keep growing that relationship, the two companies have formed the Ssangyong Motor-POSCO Partnership Promoting Consultative Organization, which will try to find more ways to continue working together in the future.

SM6 Introduces Steel Innovation for Stylish Success

POSCO has also brought Solution Marketing to Renault-Samsung, developing a whole new type of steel technology that helped the company create an outstanding new model.

The SM6 (or Renault Talisman, as it is known in Europe) is a mid-size sedan that has earned positive reviews for its style and cost-effectiveness. It was even awarded the “Most Beautiful Car of the Year” prize at the International Car Festival in Paris. This was accomplished thanks in part to POSCO’s ultra high-tensile steel.

POSCO steel plates were used for 100 percent of the cars exterior and interior, of which 18.5 percent was giga-pascal level ultra high-tensile steel, the maximum level allowed for this class of vehicle. It was also the first time in Korea that TWB-HPF (combined build processed products) was applied, a technology that combines steel plates of different strengths and thicknesses, cutting them into just the right shape. It’s a new technology that POSCO invented, and it helped Samsung-Renault create a stronger, lighter-weight vehicle.

With more than 16,000 pre-orders in its first 20 days, the SM6 has proven to be a significant hit, especially with people in their 30s and 40s. But it was an achievement that required a strong collaboration and relationship between POSCO and Renault-Samsung.

Ultra High-Tensile Steel Brings New Excitement to Malibu

The newest edition of GM’s Malibu is enjoying some of its best buzz in years, in no small part due to the benefits brought by POSCO’s high-quality, ultra high-tensile steel, which was applied extensively in its body.

Because of that ultra high-tensile steel, the new Malibu is 130 kilograms lighter than the previous model, but it still possesses the highest level of safety compared to other vehicles in the same weight range. In fact, the improved safety levels produced by POSCO’s ultra high-tensile steel helped earn the new Malibu five stars in the 2016 New Car Assessment Program from the U.S. National Highway Traffic Safety Administration, the best results in its class.

More than 10,000 Malibus were pre-ordered in just the first 10 days in Korea alone, once again showing how POSCO, by working with its customers, is able to expand markets and improve their business together.

The Limitless Possibilities of Solution Marketing

When CEO Kwon introduced Solution Marketing, he said “We will never stop providing the steel products that customers need, but we will go beyond supplying products to create greater value by offering tailored solutions based on constantly listening to their ever-evolving needs.”

More than just steel, Solution Marketing is about finding technical, commercial and human solutions. The great results now being enjoyed by the Tivoli, SM6, and Malibu are showing just how right Solution Marketing is—for POSCO and for its customers.

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Last year, POSCO strengthened its competitive edge by stably supplying high-quality materials to GM’s global plants throughout South Korea, Mexico and India. POSCO has also focused on maximizing synergy for both companies by enhancing the executive ability for solutions marketing. In particular, the technical council jointly operated by POSCO and GM is constantly creating new business opportunities as a venue for joint development of steel materials and technologies to be applied to new cars.

POSCO’s global marketing infrastructure and the TSC (Technical Service Center)* are considered to be the company’s strengths that differentiate it from its competitors. POSCO has provided customized solutions for each of GM’s global plants and reinforced cooperation based on these strengths, putting itself in a position to be qualified as GM’s Supplier of the Year for two consecutive years.

POSCO actively supported GM’s strategies to increase the purchasing of local materials by completing quality certification and initiating supply of side plate materials manufactured by POSCO Mexico for GM’s Mexico-based plant. In addition, it has supplied low unit weight materials from the headquarters for GM’s plant in India, providing optimized solutions for the needs of each global GM plant while constantly contributing to stabilized production and increased efficiency of clients.

This year, POSCO will continue to enhance its global marketing competitiveness by expanding the scope of convergence solution marketing based on world premium products and further strengthening its partnership with GM.

The GM Supplier of the Year Award, established in 1992, is given to suppliers that go above and beyond GM’s requirements based on quality, service, technology and price. Criteria are evaluated by a group of executives in the fields of procurement, engineering, quality, manufacturing and logistics. This year, 110 companies were selected as recipients of the award.

* POSCO TSC (Technical Service Center) is an organization providing an integrated solution of EVI (Early Vendor Involvement) and technical services for clients using POSCO’s steel materials. It is operated in 23 locations worldwide including South Korea, China, the Americas, Europe and Southeast Asia with an aim to provide customized care and complete local solutions for global clients.

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POSCO will exhibit its technology for the first time as a steelmaker at the North American International Auto Show in Detroit on Jan. 11 to 24.

TWIP is the “dream material” that has improved its intensity and machinability, and has been produced by POSCO for the first time as a steelmaker, representing the unique power of POSCO’s technology.

This steel’s intensity is five times stronger than other steel in terms of machinability, while withstanding up to 100 kg per mm². Therefore, it proves excellent in impact absorption and increased safety. This technology can be applied to bumper beams of automobiles. Many competitors have tried to develop TWIP, but failed to deploy it on a commercial scale.

HPF steel is hard to process when the intensity level exceeds 1.5 GP. To counteract disadvantage, HPF has increased its machinability through heat treatment. This product can be applied to center pillars to protect passengers from external accidents. POSCO has become the world’s first steelmaker to successfully produce a product in level of 2GPa. This product was first introduced as Renault’s 1 L concept car at the Paris Motor Show in 2014, and it earned favorable reviews.

POSCO will also showcase the 1GPa-TRIP, a recently developed steel with high intensity and ductility, and the PosM_XF (extra formability), the next generation TRIP with improved machinability.
For the NAIAS, POSCO aims to attract global automakers’ purchasing needs by revealing the most idealistic steel plates for automobiles.

About 30 high-strengthened and light weight products including POSCO’s original products are being exhibited at this year’s motor show. POSCO plans to get attention from global automobile companies by presenting the auto body made with most ideal and the world’s best car sheets.

The weight of the steel itself is about 26.4 percent lighter compared to mid-sized vehicles and has been verified in terms of safety. It received a five-star safety rating, as well a “good level.” which is the highest level possible, for internal performance evaluation conducted by 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 the internal combustion engine body was 50 percent lower, and average electric car emission was about 9 percent less. It also gives off fewer emissions of CO2 compared to electric vehicles made with one-third the gravity of aluminum in comparison to iron.

POSCO currently supplies automobile steel sheet to the automobile manufacturers and component manufacturers, including the global top 15 companies such as Toyota, Volkswagen, and GM through 10 automobile production plants and 24 machining center. POSCO has proven its quality excellence by receiving “This Year’s Supplier” from the world’s leading automotive companies such as Toyota and GM.

POSCO is planning to expand 70 percent or more of World Premium (WP) steel sheet sales ratio by not only supplying products but also providing use of technologies such as molding and welding for customer’s best utilization of certain products through the development of solutions marketing activities.

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