POSCO has announced its financial reports at Investor Relation (IR) conference call on April 24th that its first quarter consolidated sales were up to 14.7 billion dollars and its consolidated operating profit was 1.4 billion dollars. The consolidated net profit was approximately 1 billion dollars.

POSCO’s consolidated profits indicates positive sign for both domestic and overseas

Reach to 14.7 billion dollars consolidated sales, 1.4 billion dollars in consolidated operating profit

Sales, operating profit and net profit has elevated by 5.2%, 9% and 10.9% compared to the previous year. This impressive achievement is done by the improvement of both domestic and overseas steel production and non-steel affiliates.

Non-consolidated sales of 7.7 billion dollars and 946 million dollars of operating profit.

PT. KRAKATAU POSCO, which is an integrated steel mill in Indonesia also turn into profit from the third quarter. Despite of decrease of steel bar and shaped steel plant from POSCO SS VINA in Vietnam, operating profit has increased gradually. This great performance of oversea steel subsidiaries gives positive indication of growth in sales.

Its non-consolidated sales rate has increased by 9.8% year-on-year to 7.7 billion dollars. Also, the proportion of the sales of World Premium products went up by 1.4% year-on-year to 54.9%.

Increased sales of high-value-added products, cost reduction, continued improvement of profitability, and the increased price of steel were the driving force of increasing operating profit margin from 1.8%p year-on-year to 13.1%.

Future is even brighter

POSCO expects that demand of steel will continuously increase on the back of steady restructuring of the Chinese steel industry and recovery of emerging economies. POSCO still also continue to secure financial soundness, reducing costs, and expanding high value-added sales.
All those efforts of POSCO brought impressive result of increasing consolidated and non-consolidated sales to 58.4 billion dollars and 27.9 billion dollars.

Just to name a few, Lebanon, Jordan and Tunisia repealed a law that exonerates rapists and allows them to avoid punishment if they marry their rape victims. In Saudi Arabia, women finally gained the right to hold driver’s licenses. In the U.S. and around the world, more than 5 million people took part in the Women’s March in January 2017, to advocate fairness and equality. Then, Iceland set an example for all when it became the first country in history to make it illegal for companies with 25 or more employees to pay men more than women for the same job.

This year, steelmaker POSCO added a big win for women’s empowerment.

POSCO Follows the (Women’s) Lead

POSCO recently welcomed their first female executive, Lee Yu-Kyung, as POSCO’s Chief of Plant, Equipment and Materials Procurement. In a male-dominated industry, Lee’s achievement is a rare sighting, but after taking a deeper look at Lee’s work history and overall attitude, it’s no surprise Lee is a woman who deserves to be at the top.

Lee Yu-Kyung, POSCO’s first female executive employee.

For Lee, POSCO is her second job. She was at her first job in 1990 at an IT company when she saw, spread across the front page of the daily paper, POSCO’s ad calling for female employees.

“When I saw the question on the ad that read, ‘WIll you join POSCO to work towards a promising future today?’ I just thought this is it. It sounds tacky today, but at the time, it was the opportunity I had been waiting for.”

And so began Lee’s 27 years (and still counting!) with POSCO. The first task she encountered was handling exports of cold-rolled steel to Southeast Asia, and she was off on her first business trip to Singapore just months into her job.

“It was a rare opportunity for a fresh rookie 1st year recruit to be able to go overseas. Looking back, I think it was opportunities like these, and the expectations that came with them that built me up professionally.”

Keeping Work Interesting

After her experience in the Export Department, she moved from department to department about once every 3 years, including Machinery Purchasing, Raw Materials Purchasing, Marketing at POSCO M-Tech and even completed a year-long MBA program at Ewha Womans University.

“POSCO has a work-rotation program for its employees, which just goes to show how invested the company is in the growth of individual employees. It’s a lot more cost-effective for POSCO to hire employees to specialize in one position, but instead, we rotate every 3 to 4 years to learn new tasks, gain insight and experience new working environments. This is probably the biggest reason I believe I made the right choice in working at POSCO.”

Vice President Lee was the brains behind POSCO’s Global Information Hub. (Source: 727406 Vimeo)

Lee’s continued learning within the company lead to some impressive results. She set up what is now known as the Global Information Hub (GIH), a process for gathering market information by utilizing the network of global trading companies. Lee was also the first person to apply the concept of total cost of ownership (TCO) to machinery purchasing so the company could make well-informed and comprehensive decisions.

Lee explained, “Whereas before, the price of machinery determined purchase decisions, TCO provides a more accurate cost based on the machinery’s performance and efficiency over its lifecycle.” As such, POSCO is still reaping the benefits of Lee’s hard work.

Lee’s professional achievements are impressive, but it’s not the only thing young professionals can learn from her.

A True Multi-tasker

“To be honest, I don’t recall too many moments where I encountered hardship at work. I just try to do all that I can in the given situation, and I know that’s enough. However, one of my greatest challenges came when I found out I was pregnant with my fourth child. Going through 3 pregnancies was tough enough, and I didn’t know if I could come back from a fourth. The thing I worried about most was what my coworkers would think if I took another maternity leave.”

“I’ll never forget what my boss at the time told me. He said, ‘I’m grateful for everything you’ve done for the company so far, and I know you will do well going forward. I know it’s hard right now, but this time is going to pass.’ Thanks to my boss I found the courage to come back after an 8-month maternity leave and get to where I am today.”

Advice for All Working Women

Just as her chief played a critical role in her career, Lee hopes to coach and foster other women employees at POSCO.

“I’m not going to say that being a working mom is easy. My third youngest once held onto a lamp post on the side of the street and cried all morning on our way to kindergarten. It breaks your heart, but those moments do pass, and then you’ll be glad you held on and fought through.”

Lee Yu-Kyung had plenty of advice for other working professional women.

Besides working through hard times, Lee shared other advice for working professionals.

“You gotta take care of yourself – during weekends, you have to get meaningful rest. You have to fit in time with your friends and enjoy the moments along the way.” Plus, for the past 10 years, Lee has fit in an hour of exercise every morning before work and can’t remember the last time she took a sick day. “Your body is just like the machinery in our factories. You have to take care of it, make sure nothing’s broken and maintain it over a long time.”

“Professionally, it’s important to try and see the bigger picture and work to your competitive advantage. Always watch what the seniors are doing, and be open and willing to learn.”

Going Forward as POSCO’s First Female Executive

When asked what her future plans were in her new role, she replied, “I believe purchasing goes beyond obtaining certain products. It’s about developing the supplier’s technology, business strategy and vision for mutual growth. That’s why we’ve always put an emphasis on fairness, transparency and cost-saving, but in the future, I would like to also work towards finding new technologies with suppliers to lead the market and gain further competitiveness. In order to achieve this, we plan to cut costs internally and continue to cooperate and co-create with our suppliers.”

During her 27 years at POSCO, Lee was able to turn every challenge into an opportunity to become the professional she is today as well as a role model for other women working in male-dominated industries. There is no doubt she will continue to progress and rise to meet new challenges at POSCO.

Cover photo courtesy of The Daily Beast

Prime Minister Modi revamped India’s economy with his “Make in India” initiative. (Source: LinkedIn)

Most notably, Prime Minister Modi launched the “Make in India” initiative in September 2014, showing his resolve to revamp the manufacturing industry in India. Under the initiative, domestic as well as foreign companies are encouraged to manufacture their goods in India with the goal of increasing the makeup of the manufacturing industry to 25 percent of GDP by 2025.

At the heart of the initiative is the government’s efforts to ignite the steel industry. The National Steel Policy (NSP) 2017 declared that India will become self-sufficient on domestic steel supplies by increasing its steel production capacity from 122 Mt in 2015 to 300 Mt in 2030. However, the steel industry currently only makes up 1.04 percent of the country’s GDP.

Challenges Ahead for India’s Steel Industry

Despite India’s promising potential and robust government support, the steel industry has not met the government’s high expectations and growth has been modest. According to researchers in volume 4 of the Asian Steel Watch, there are deep structural flaws within India’s steel industry that need to be addressed before the country can reach its full potential.

One of the industry’s biggest challenges is its growing debt – In 2016, the steel industry surpassed INR 3 trillion in debt. Most of the country’s steel and infrastructure projects are financed by the government. What India needs is more private sector involvement, but private players are hesitant due to complex regulations, a lack of business models and no guarantee on returns on investment (ROI). The government has also been slow to secure FDI because, over the years, India’s steel industry has displayed poor planning and management of projects as well as a mismanagement of funds.

India’s mining industry will directly affect the success of the steel industry. (Source: Pinterest)

Another major challenge has to do with India’s natural resource management, as mining companies do not have fair access to the country’s abundant resources. The mining industry is subject to heavy tax burdens including the royalty, local area development tax, forest development tax and much more as it is a profitable business for the government. Plus, the costs of meeting international environmental standards are passed directly onto mining companies. Thus, the price of iron ore and other minerals do not reflect the abundant supplies available, and the higher prices ripple into the steel industry.

Moreover, the government regards the steel industry as the backbone of India’s economy, but in reality, the times are changing.

Technological advances in the manufacturing industry is making the steel production process more efficient and less labor intensive. (Source: South China Morning Post)

In the past, 70,000 workers were required to produce 1.5 Mt of steel. Today, it takes about 3,000-4,000 workers to make 5 Mt a year. The steel industry is just not what it used to be in terms of the positive effects it had on the economy as a whole. The industry requires intensive capital and the only way it will survive is with low labor costs and maximum manpower productivity.

India needs to take full advantage of the country’s abundant resources and capitalize on its competitiveness to reach its full potential. In order to do so, India can start by examining other steel industries that served as the main driver for national economic growth, such as Korea’s.

Takeaways from Korea

After the Korean war in 1953, Korea had to build its economy up from scratch. Like India, the government chose to stimulate its steel industry and spent its war reparations payment from Japan to build POSCO’s steel mill in 1969. Since then, the state-led steelmaker has been a primary engine for Korea’s miraculous economic growth.

The construction of POSCO’s headquarters began in May 1968.

So how did Korea manage such growth?

The government allocated much of its resources to infrastructure construction for efficient logistics and implemented policies to support the mutual growth of steel and steel-consuming industries. Moreover, the government practiced protectionist trade policies long enough to get Korea’s steel business on its feet, then supported a market-driven business model.

The government also kept a close watch on supply and demand forecasts and updated its supply policies timely and accordingly. Factors such as demographic changes, industrialization patterns, urbanization and labor costs should be examined holistically to prevent the gap between supply and demand from increasing too much. For example, in 2010, the Korean government implemented capacity expansion policies that resulted in oversupply and a prolonged recession. This was because policymakers failed to diagnose the symptoms of the mid to long-term steel demand forecasts that showed sluggish demand. Since then, Korean policymakers keep close watch on such measures to update the country’s supply policies.

Finally, the Korean steel industry invested heavily in knowledge accumulation and R&D to wean off of Japan’s technical support and become an exporter of steel technology.

POSCO is now a leader in steel production technology.

Compared to Korea, India has an advantage in almost every aspect. The country’s per capita steel consumption is still low and the booming population will drive demand in steel-related industries. With much room for growth, the Indian steel industry can expect to see accelerated growth when paired with the right policies and government support.

The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

However, these building projects are on another level of huge, and with all the megacities popping up throughout the country, China boasts many of the biggest infrastructure projects in the world. Here’s the Steel Wire’s look at some of the most impressive to date.

Three Gorges Dam

China is home to the largest dam in the world, measuring 1.5 miles in length and sitting 60 (!) stories tall. The Three Gorges Dam took 1.92 million tons of rolled steel to complete, along with 10.82 million tons of cement and 1.6 million cubic meters of timber. The dam opened in 2003 on the Yangtze River and last year, generated a record-high 97.8 billion kilowatt-hours of electricity, 4.35 percent higher than the previous year.

The Three Gorges Dam is the biggest dam in the world and is made up of 1.92 million tons of steel. (Source: Wikipedia)

Beijing Capital International Airport

Beijing Capital International Airport (PEK) was the second largest and busiest airport in the world in 2016, just behind the Hartsfield–Jackson Atlanta International Airport in the U.S. PEK recorded 94,393,454 passengers that flew in and out in 2016, a 5 percent increase from 2015, and is easily the biggest airport in all of Asia.

Beijing Capital International Airport is the biggest airport in Asia, and second in the world. (Source: Top China Travel)

The first phase of the airport cost USD 3.5 billion and was completed in 2008, but in order to handle the growing number of passengers, an expansion project is planned for 2025. The estimated 5-year project will almost double PEK’s capacity and cost an additional USD 13 billion.   

Jiaozhou Bay Bridge

China is also home to the longest sea-crossing bridge in the world. The massive structure stretches over 26.4 miles and connects the cities of Qingdao and Huangdao. The 110ft width accommodates 6 traffic lanes that are supported by 5200 steel pillars.

The Jiaozhou Bay Bridge is held up by 5200 steel pillars. (Source: Feel the Planet)

The bridge first opened in 2011 and took USD 2.3 billion and over 10,000 workers to build. The Jiaozhou Bay Bridge also took 450,000 tons of steel to complete, allowing the bridge to be able to withstand earthquakes up to 8.0 in magnitude, typhoons and the force from a 300,000-ton object.  

Jiuquan Wind Power Base

Not surprisingly, the largest wind farm in the world located in China. Jiuquan Wind Power Base is made up of 7,000 turbines that generate enough electricity to sustain a small country. The plant was approved in 2008, and the government has pledged an additional USD 17.4 billion by 2020 as part of the effort to develop China’s renewable energy industry. For now, only 3.3 percent of all the electricity generated in China comes from wind turbines. With the additional investment, Jiuquan Wind Power Base will be able to generate a massive 20 gigawatts of sustainable electricity.

The Jiuquan Wind Power Base generates enough energy to power a small nation. (Source: The New York Times)

New Century Global Center

What does the biggest building in the world look like? A mini country. Located in Chengdu, Sichuan province, the New Century Global Center combines a shopping mall, water park, hotels, movie theaters, offices, restaurants, ice rink and more into 19 million sq.ft. of space. The structure is made of glass and steel and measures 500 meters long, 400 meters wide and 100 meters high. Designed by architect Zaha Hadid, it even has artificial sun for the perfect weather, 24 hours a day.

The New Century Global Center located in Chengdu is the largest city in the world. (Source: Thousand Wonders)

Port of Shanghai

The world’s biggest ports are mostly located in China, and the biggest one is the Port of Shanghai. In 2012, 744 million tonnes of cargo and 32.5 million twenty-foot equivalent units (TEUs) of steel containers passed through the port. The entire area of the port on the Yangtze River covers 3,619km² comprised of 3 main ports: Wusongkou, Waigaoqiao and Yangshan Deep-Water Port. About 25 percent of China’s trade passes through the Port of Shanghai, or 2,000 steel container ships per month.

The Port of Shanghai is the largest port in the world and a quarter of China’s trade passes through it. (Source: Thomson Reuters)

Most recently, the 4th phase of the Yangshan Deep-Water Port was completed, making it the largest automated port in the world. It spans across 2.23 million square meters, and can automatically handle 4 million standard containers per year, or 25 per hour. It was also built to accommodate the heaviest ships in the world.

China is using its steel to build up the country’s infrastructure, and set world records along the way. Besides being impressive in size, the structures are expected to contribute to greater connectivity and economic prosperity throughout China.

Cover photo courtesy of Morgan Stanley.

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.

With the performance increase in both steel and non-steel businesses in Korea and overseas, operating profit was highest it’s been in the last 6 years, and the operating profit to sales ratio was 7.6 percent. Year-on-year consolidated sales increased by 14.3 percent and operating profit and net profit increased by 62.5 percent and 183.7 percent respectively.

The total operating profit of POSCO’s non-steel businesses, which reached KRW 10 billion last year, also turned into a surplus. There was an overall increase in non-steel businesses including trade, energy, ICT, chemicals and materials, resulting in KRW 1.0927 trillion of profits, up KRW 1.0798 trillion from last year.

This is in line with POSCO CEO Ohjoon Kwon’s strategy to focus on group management by securing future growth engines and reforming non-steel businesses.

※ Total operating profit per sector

Indonesia-based integrated steel mill, PT. KRAKATAU POSCO, also generated a surplus for the first time since operations began in 2014. Mexico-based automotive steel sheet plant, POSCO Mexico, as well as India-based cold rolled steel corporation, POSCO Maharashtra, also achieved their highest operating profit, tripling the total operating profit of overseas steel business.

Moreover, separate sales and operating profit increased year-on-year by 17.4 percent and 10.1 percent respectively to KRW 28.5538 trillion and KRW 2.9025 trillion, and the net profit was KRW 2.5457 trillion.

Production and sales decreased year-on-year due to the repair and facility rationalization of Pohang Blast Furnace No. 3, but the sales ratio of World Premium products with better technology and higher returns increased to 53.4 percent, its higher ever.

Financial soundness was also saw improvements. POSCO’s Consolidated debt ratio decreased by 7.5%p year-on-year to 66.5 percent, the lowest since 2010. Separate debt ratio also decreased by 0.5%p year-on-year to 16.9 percent, constantly renewing the lowest record on a yearly basis.

POSCO also demonstrated a cumulative financial improvement of KRW 7 trillion with 150 cases of restructuring in the last 4 years, reinforcing the business structure as well as financial competency. Accordingly, this year the company expects to make more investments in new growth engines such as lithium and cathode materials as well as energy and construction in addition to renewing the facilities at its steel mills. Thus, there will be a budget of KRW 4.2 trillion for consolidated investment, an increase of KRW 1.6 trillion compared to last year. The consolidated sales target is KRW 61.9 trillion.

※ POSCO’s 2017 business performance

So, what do these athletes from all over the world competing in various different sports have in common? They all rely on steel to enhance their performance and keep them safe while they compete for the highest honors in their profession.

Here are some of the most prominent ways steel plays its part in winter Olympic sports:

Blades/Edges of Steel

Ice Hockey

Ice hockey is easily the main attraction of winter Olympics as hockey finals are usually the last events of the Games. The same can be said of para ice hockey as well. Athletes glide through the rink on specially-made sledges, or sleds, and have as much, if not more, full-contact than regular ice hockey.

Stainless steel is the material of choice for ice hockey skate blades. (Source: FXBX)

There are several pieces of equipment that enable hockey players to perform at their best, including their skates and sleds. The deciding factor in the quality of skates comes down to the type of steel used in the blades, or runners. Harder types of steel are preferred for less wear and tear and so that athletes do not have to sharpen the blades too often.

That’s why most opt for stainless steel, for its high-strength, hard, ductile and corrosion-resistant qualities. For para ice hockey players, their sleds make or break the game, and materials like magnesium, high-manganese anti-vibration steel and stainless steel give them the edge they need.

SEE ALSO: How POSCO’s Advanced Technology Gives Speed to Korea’s Para Ice Hockey Team

Figure Skating

Blades on figure skates look similar to that of hockey skates, but are longer and heavier. Figure skate blades also have the thickest type of blades at 4 to 5mm. These blades were most commonly made of tempered carbon steel coated with chrome, but lighter materials such as stainless steel are becoming more common. At the professional level, many athletes wear skates with high-grade steels that are much more expensive than common skates. A distinct characteristic of these blades is the spiked front toe which gives figure skaters the traction they need for rigorous jumps and spins.

Figure skates have spiked toes to assist jumps and spins. (Source: Bend Source)

Short and Speed Skating

Like blades for hockey and figure skates, short track and speed skates are also made of stainless steel. Short track skates are slightly curved and shorter than speed skates, with slightly rounded backends for safety.  

Figure skates have spiked toes to assist jumps and spins. (Source: International Skating Union)

Speed skates are different from those for short track because the back-end of the blade is detached from the boot. this reduces friction and energy loss. Also, the detached blade allows the blade to remain attached to the ice longer than attached blades.

Skiing and Snowboarding

Steel also plays a crucial part in the construction of ski and snowboard edges. With high-quality steel, athletes can sharpen the edges more frequently, and sharp edges are crucial for carving and turning on snow. Edges are most commonly made of stainless steel, and they are inserted into the body of the ski or snowboard via “teeth” or T-shaped ridges. Most edges have a Rockwell 48 hardness.

Ski and snowboard edges are made of steel to achieve maximum sharpness. (Source: YouTube)

Rock-hard Skeleton, Ultra Sharp Blades

Bobsled

There are several variations of bobsled events during the Olympics: 2-man, 4-man and women’s doubles. No matter how many people are on a team, each bobsled has a steel chassis or skeleton and four steel blades attached to the bottom of the sleds. Every team must use the same type of steel for blades used in competition. Much like a car, materials that make up the bobsled must be lightweight yet strong so the athletes have the freedom to steer through the track. During competition, sleds slide through at an average speed of 150 km/hr.

Ski and snowboard edges are made of steel to achieve maximum sharpness. (Source: Lake Placid)

SEE ALSO: Ask an Expert: How POSCO GIGA STEEL Frames the G4 Rexton

Luge

The luge is considered to be the most dangerous winter Olympic sport due to high speeds and sharp turns of the track. After push off in a seated position, the person or pair lies flat on their backs and steer the sleds with their bodies. Sleds have a pair of steel blades attached to the bottom. Olympic rules prohibit teams from heating the blades before competition as it would decrease friction against ice. Instead, athletes try to maintain the sharpest blades possible.

The Luge is one of the most dangerous winter Olympic sports. (Source: Team GB)

Skeleton

Opposite of the luge, skeleton athletes race flat on their stomachs, with no brakes. Instead of starting on the sled, the athletes have to sprint for about 40 meters before hopping on. All skeleton sled frames must be made of steel, and blades are usually made of high-quality stainless steel. As for all the “sliding” sports, there are strict rules for the size and weight of the sleds.

Skeleton athletes sprint 40 meters before jumping on their sleds stomach first. (Source: MPR News)

The U-Shaped Relationship

However, the argument is not so black and white according to Spyridon Stavropoulos, Ronald Wall and Yuanze Xu’s Environmental regulations and industrial competitiveness: evidence from China. The study suggests that the relationship between stringent economic regulations and industrial (or economic) competitiveness is U-shaped. Meaning, initially, stringent regulations will increase the cost of production and make companies less profitable, but after a certain turning point, companies will be forced to adapt and innovate, thus becoming more competitive in the long run.

Many activists sit on both sides of the debate. (Source: Ethical Shopper)

When regulation policies are consistent over a long period of time, companies are forced to tackle the root of the problem, instead of focusing on meeting certain numbers. In today’s global economy, many governments have already begun to implement stringent economic regulations that only look to get tighter in the future. In such a context, companies that choose to innovate and come up with solutions to global pollution problems will come out more competitive in the end.

Sustainability Equals Competitiveness

Looking at major economic players around the world, it’s safe to say that environmental sustainability is a common topic on each of their respective national agendas. Pressing national challenges are tied to the environment in one way or another. For example, many countries are shifting their policies to ensure energy security. Countries that import most of their energy from external regions are subject to volatile prices and thus unstable economies. Thus, governments are actively supporting companies that can cultivate domestic, renewable energy sources. Another, more obvious, example is the direct link between pollution and health risks.

China is the fastest developing country in the world, and by 2035, it will be responsible for 28 percent of the total global energy demand. China also happens to be almost completely dependent on energy imports. Subsequently, the government has started a variety of government programs to boost sustainability as part of President Xi Jinping’s pledge to build a “Beautiful China”. These policies also come in the wake of shocking statistics: in 2015, pollution led to 1.8 million premature deaths in China.

Chinese President Xi Jinping laid out a 2-step plan to achieve a “Beautiful China.” (Source: News Gru)

Sustainable Steelmaker

Even with strong government commitment and plenty of programs to support sustainable business, most developing countries lack affordable renewable energy sources and the technology to apply those sources to existing production processes. Nevertheless, the world is changing and only those that adapt and innovate survive and thrive. That’s exactly what POSCO did starting back in 2007.

FINEX: A Game Changer

POSCO came up with a new molten iron production technology called FINEX. The technology allows molten iron and non-coking coal to be produced directly in a blast furnace during the iron-making process. It is different from the conventional blast furnace process, as it combines the coking plant, sinter plant and blast furnace into a single iron-making unit. This lowers production costs and reduces harmful emissions.

FINEX is a sustainable game-changer for steel production.

Ultimately, FINEX is one of the most cost-effective and eco-friendly ways to make steel. The technology mitigates the use of C02, has the lowest process-related emission rates and preserves resources through the use of a wide range of iron ores and non-coking coals. FINEX reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to traditional blast furnaces. Furthermore, the by-products from the process generate highly valuable export gas that can be used for various purposes like electric power generation or natural gas substitution.

On December 7, 2017, POSCO reached 20 million cumulative tons of molten iron production using the FINEX technology. POSCO is not the only company enjoying the benefits of sustainable competitiveness – POSCO’s manufacturing partners can see lower emissions levels when evaluating the entire life cycle of their products.

SEE ALSO: POSCO Reaches 20 Million Tons of Production Using FINEX Technology

Sustainability is no longer just jargon. As environmental issues are intricately tied to the economy and even national security, governments around the world will be actively supporting sustainable companies in the years to come. Companies can expect sustainability and competitiveness to become interchangeable terms in the near future.