Dream comes true in 2068 achieving 500 billion sales?

POSCO has celebrated 50th year anniversary ‘Future vision declaration’ on April, 1st and announced future missions and visions as Top 5 world leading global steel company.

CEO of POSCO, Ohjoon, Kwon is sharing global missions and visions with audience at 50th anniversary

For the future, ‘Unlimit the Limit’

Ohjoon Kwon the CEO of POSCO disclosed POSCO’s new future slogan ‘Unlimit the Limit: Steel and Beyond’ by using TED speech method that is currently considered as one of the most efficient speech method. The mission that has been made based on POSCO’s challenges for 50 years history, is expressed the will of POSCO to ‘overcome the limit and go further to the next step’ especially challenging to non-steel industry.

POSCO is developing a plan to shift gradually from current profit system that 80% of income from steel industry to new profit system that produces profit from 3 different industrial fields: Steel, Infrastructure, New Growth in the ratio of 4:4:2. By successfully operating new profit system, POSCO expects that the mission can be accomplished by 2068 sales up to 500 billion dollars and 70 billon dollars of operating profit.

POSCO is focusing balance of 3 core elements, business, technology, culture. (Source:Bitcoinmagazine)

POSCO’s Perspective: Harmony of business, technology and culture

POSCO’s future vision also has been announced as ‘POSCO the Great’. This was the slogan that Ohjoon Kwon introduced as he had been elected as CEO of POSCO in 2014. The slogan was focused on simply recovering the strength. However, the new slogan is ‘Great Business, Great Technology and Great Culture’ indicating well-organized business structure, advanced technology and organizational culture.

POSCO has contributed significant impact on both Korean country and society in terms of steel and educational support. And POSCO has decided to keep supporting business for the country.

One of the plans that POSCO is contemplating, is establishment of the place for developing creativity for adolescent.

The ’Youth Creativity Center’(tentative) is going to be designed to provide various opportunities to adolescents such as giving experience to understand basic understanding of scientific technology and opportunity to improve creativity.

Furthermore, the ‘Youth Creativity Center’ will contain diverse spaces for culture and arts so all generations will be easy to access. POSCO is expecting the Youth center may be a competitive candidate on coming international contests.

Seoul POSCO center has opened a new product exhibition hall to communicate more with general populations and show their future vision. The exhibition hall has 30 seats visual promotion room. The room provides POSCO promotion videos and visualized POSCO images by 3D technique. Various animations and techniques are prepared to describe steels that are being used in our life and industrial demands of steel for future.

For celebrating 50th anniversary, POSCO will broadcast TV commercial named ’50 years challenge, New Dreams for next 100 years’ until June 10th and POSCO exhibition (Homage to POSCO) will be held in POSCO art gallery in lower ground level until May 8th. POSCO historical museum in Pohang is also going to open gallery (‘Visualized history of POSCO for half century’) showing numerous events during POSCO’s 50 years until June 30th.

POSCO is also preparing the event that gives valuable opportunities to share thoughts between CEO and employees in Seoul, Po hang, Kwang yang city.

‘Together the Better’, POSCO and Korea have strong bond in all history

True companion of Korean history

50 years of POSCO’s history is in the same line with Korean history which means that POSCO has been increasing growth for half century. POSCO was established in 1968, and the very first steel was manufactured in 1973. Since that year, total sales of POSCO has incredibly elevated by 686 times last year from 1973. 

Growth of POSCO gave great influence on major industry in Korea. Especially Korean automobile and shipbuilding industry had similar growth curve which means that materials manufactured from POSCO was true backbone for those industries. For instance, Korean ship manufacturing has reached to 23.5 million tons from 12 thousand tones from 1973. And automobile production also increased 4.11 million from 25 thousand cars.

SEE ALSO: What are Automobiles Made of?

Technology is another fundamental aspect of POSCO’s strength. POSCO has developed eco&efficient furnace by its own technology called ‘FINEX’ technology which fully satisfied current and future global trends, environmental and innovative. With this advanced technology, POSCO has exported its unique iron making technique in China in 2013. This describes that POSCO is global technology provider.

In addition, POSCO is the global top company that produces steel for vehicles. Approximately 9 million tons of steel for vehicle has been produced from POSCO which indicates that 25% of steel for car manufacturing is from POSCO. Simply 1 in 10 cars in global, uses steel from POSCO.

Relationship of growth between GDP per person in Korea and production of steel of POSCO

POSCO has established its own smart platform named ‘PosFrame’ that made POSCO is global leading steel company for smartization.

With all these achievements, POSCO has been listed in ‘worlds most competitive steel maker’by World Steel Dynamics for 8 consecutive years since 2010. Also POSCO has been top ranked in SAM-Dow Jones Sustainability index since 2005.

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.

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.

Since last February, CEO Kwon has visited Siemens, GE and other businesses in Silicon Valley to explore new technologies and expand POSCO Group’s smartization plan. At CES 2018, CEO Kwon saw first-hand the latest smart technologies and plans to implement them to all of POSCO’s core businesses including steel, construction, IT and energy. He also met officials from leading smart companies such as GE and DPR Construction, and examined possibilities for cooperation over commercializing POSCO’s smart solutions.

POSCO Kwon met Heilmann Matthias, President and CEO of Digital Solutions at Baker Hughes General Electric (BHGE). Matthias oversees the digital solution business of GE Group, and the two discussed the development of PosFrame, POSCO’s proprietary smart platform, its compatibility with Predix, GE’s smart platform, as well as the possibility for joint commercialization.

In particular, POSCO ICT is planning to sign an MOU with DPR Construction, the world leader in Smart Construction, to collaborate on smart projects and find opportunities to apply new ICT technologies to construction. Through this MOU, the two companies will cooperate on projects such as constructing and operating highly-efficient, low-cost data centers and smart factories controlled by PosFrame.

CEO Kwon also visited the automobiles, home appliances, smart city and smart home exhibition booths. He examined the latest tech trends of IT utilization in steel-consuming industries to develop compatible materials and steel solutions.

He also made sure to explore electric vehicle (EV) batteries and new IT technologies surrounding EVs, as lithium materials are the new growth engine of the company. CEO Kwon also evaluated the possibility of securing new markets for the group’s construction business at home and abroad.

POSCO Group plans to continue searching for new, innovative solutions to apply to its smartization efforts and actively develop domestic and overseas data centers and smart factory markets.

Cover photo courtesy of BGR.

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.

Upon completion, the Green Iris will transport limestones from the port of Donghae in Gangwon-do to Gwangyang Works from the beginning of 2018.

POSCO’s high manganese steel allows the fuel tank to withstand temperatures as low as -196℃, so that it can store and transfer LNG. Moreover, it is highly weldable and cost-efficient compared to other common materials for LNG fuel tanks such as nickel steel or aluminum alloys.

POSCO developed the technology for its high manganese steel after 10 years of research since the late 2000s. Now, it is one of POSCO’s leading World Premium Products (WPP). Due to strengthening environmental regulations worldwide on emissions of sulfur oxides, nitrogen oxides and carbon dioxide from vessels, demand for high manganese steel for LNG tanks are expected to increase dramatically.

Cover photo courtesy of Gas Asia Summit.

1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

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.”

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

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SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.