Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

Still, in the small town of Nuanquan in Heibi Province, China, just west of Beijing, a small group of farmers are keeping one of the world’s most unique fireworks displays alive.

Resource: China’s Blacksmiths Put On Dazzling Display for New Year

About 500 years ago, there were many blacksmith shops in the farming town of Nuanquan. Unable to afford expensive fireworks during the Chinese New Year holiday, lower income residents such as blacksmiths and farmers sought an alternative. Inspired by the beautiful sparks emitted during their iron working, a group of brave blacksmiths began splashing molten metal on the city walls, which resulted in the creation of beautiful flower shapes from the cooling iron.

Photo Credit: Robert Berkowitz Creative Commons

As time went on, locals began to prefer the stunning, steel-catalyzed display to fireworks, and donated their scrap metal to the blacksmiths to use during the annual performance. Eventually, a more developed system evolved and eventually became known as dashuhua, which roughly translates as “throwing tree fireworks.”

To create the display, men first soak wooden ladles in water for three days prior to the show to prevent them from combusting on impact. After dipping the ladles into the molten iron (which is made from smashed up pieces of pig iron), flames instantly shoot up. As such, the men work quickly to splash the molten iron onto the city wall to avoid injury.

As the metal strikes the cold, hard wall, it explodes into a shower of sparks, mostly over the performers. Due to the danger posed by the falling molten iron, only the bravest individuals performed in the show, wearing only a jacket made of sheepskin—a material that naturally repels the molten iron—and a straw hat to protect against the splash of hot metal.

Photo Credit: Robert Berkowitz Creative Commons

Despite being banned during the Cultural Revolution from 1966 to 1976, the tradition has since carried on through the ages. Refusing modern protective clothing to more closely maintain the tradition, today’s performers are prideful of their region’s rich cultural heritage and are eager to pass on the custom to their children. They are also pleased that the event continues to attract spectators from all over China, who gather in freezing temperatures to witness the incredible scene of a night sky illuminated by the sparks of molten iron.

However, as urbanization surges in the world’s most populated nation, the tradition is on the decline, with only four performers left. As such, the Chinese government has designated dashuhua as an Intangible Cultural Heritage and has helped organizers build a dedicated stage for their performances, with an aim to preserve the country’s past as well as Nuanquan’s steel-centric custom.

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