Initiating a joint project to construct an integrated steel mill with an annual capacity of 5 million tons in India as part of a global upstream investment priority strategy

Chairman In-hwa Chang states, “We will actively pursue group-level future growth investments, such as overseas investments in upstream steel processes, to secure a substantial competitive advantage”

Exploring group-level business collaborations in secondary battery materials and renewable energy… Establishing regular executive exchange meetings to monitor project progress

POSCO Group is advancing plans to build an integrated steel mill in India, a growing market with a population of 1.4 billion.

On October 21, POSCO Group signed an MOU with JSW Group, India’s leading steel company, in Mumbai to collaborate on business ventures in the steel, secondary battery materials, and renewable energy sectors. Senior executives from both companies attended the signing ceremony, including POSCO Group Chairman In-hwa Chang and JSW Group Chairman Sajjan Jindal.Under the MOU, POSCO Group and JSW Group will collaborate on various business opportunities in key sectors such as steel, secondary battery materials, and renewable energy. A joint project to construct an integrated steel mill with an annual capacity of 5 million tons is planned in the Odisha region of India, with considerations for future expansion. Additionally, the two groups aim to strengthen their group-level cooperation by exploring diverse business opportunities and fostering comprehensive partnerships.

In-hwa Chang stated, “We look forward to contributing to the economic development of both Korea and India alongside JSW Group and leading the transition to an eco-friendly era. To overcome economic bloc formation and secure a substantial competitive advantage, we will actively pursue group-level future growth investments, such as expanding overseas investments centered on upstream and midstream steel processes.”

This business collaboration aligns with the seven future innovation initiatives announced following Chairman In-hwa Chang’s appointment, specifically the ‘Rebuilding Steel Competitiveness’ initiative. The cooperation with JSW Group is part of a strategic priority to secure high-growth and high-profit markets centered on global upstream and midstream processes in regions such as India and North America. Following the MOU, both companies have agreed to establish regular executive exchange meetings to continuously monitor joint project progress.

Furthermore, in the field of secondary battery materials, POSCO Group plans to actively seek business cooperation with JSW Group through joint investments and technology development along the secondary battery materials value chain. The two companies intend to expand their collaboration in the renewable energy sector, starting with a self-supply renewable energy project for the jointly constructed integrated steel mill. Given its abundant solar and wind resources, India is considered an optimal location for renewable energy production.

India is projected to be the world’s largest growth market, with an expected average annual economic growth rate of 6.7% by 2030. According to World Steel Dynamics (WSD), a specialized steel market analysis firm, India’s steel demand is expected to grow at an average annual rate of 7%, reaching 190 million tons by 2030.

JSW Group is a $24 billion Indian conglomerate with a diverse portfolio consisting of interests in steel, energy, infrastructure, cement, paints, realty, e-platforms, mobility, defence, sports, and venture capital. The Group’s flagship company, JSW Steel, operates multiple integrated steel plants in India, US, Italy with a total global capacity of 35.7 MTPA (including 5 MTPA under commissioning). JSW Energy, the second largest listed entity of the Group, is a leading independent power producer with platform capacity of 19.2 GW. Recently, JSW Group entered the electric vehicle and battery sectors by acquiring a stake in MG Motors India. The Group is committed to shaping a sustainable future through its investments in green energy, electric mobility, and innovative technologies.

POSCO Group has been successfully conducting business in India, operating a cold-rolling and plating plant with an annual capacity of 1.8 million tons in Maharashtra and five steel processing plants in Delhi and Chennai. Through this strategic collaboration with JSW Group, POSCO Group expects to further strengthen its presence in India, the world’s most populous country with substantial growth potential.

Meanwhile, POSCO Group announced its 2024 management vision titled ‘Materials for the Future, Innovation Towards World-Class,’ declaring its ambition to double its consolidated sales and quadruple operating profits by 2030, transforming into a world-class global leader in the materials sector.

▲On October 21, POSCO Group and JSW Group signed an MOU for business cooperation in the steel, secondary battery materials, and renewable energy sectors. From left: JSW Group Chairman Sajjan Jindal, Chairman In-hwa Chang.

The 2024 Global Volunteer Week, POSCO’s special volunteer service event, was held from May 23 to 31. More than 20,000 POSCO employees in Korea and other countries participated in large-scale volunteer work to practice sharing. POSCO Newsroom has taken vivid photos of the volunteer activities carried out by overseas subsidiary employees worldwide. Let’s meet them!

▲ POSCO-ZPSS employees carried out various volunteer activities to celebrate Global Volunteer Week. They held a bazaar in the cafeteria and in front of the parking lot and donated a total of 16,000 yuan to special schools and families in need. They also visited Jin Xiu School in Zhangjiagang City to provide a voluntary service of taking graduation photos for about 300 students from low-income families and donated sportswear and sneakers to the women’s volleyball team players.

▲ POSCO-QPSS employees participated in the “Love Sharing Blood Donation” event hosted by the Qingdao City Blood Donation Center and held a charity bazaar with donated goods from 48 employees in the office building’s first-floor lobby. They donated a total of 1,779 yuan to the underprivileged.

▲ POSCO-Asia (Hong Kong) employees visited a local support group for underprivileged children and donated the future generation support funds raised through the 1% Sharing activities and participated in Food Angel volunteer work to make about 2,500 lunch boxes to distribute to neighbors.

▲Twelve employees of BX Steel POSCO Cold Rolled Sheet Co. visited the Korean-Chinese Middle School in Benxi and held an art contest with the theme “Waste sorting for environmental protection starts with me” as part of an eco-friendly knowledge learning class and awarded excellent works.

▲ POSCO-CSPC employees visited the Children’s Love Center, which was newly established by the Hua Qiao Government to help special children live a safe and convenient life, and provided various learning aids for children to use. They also placed air-purifying plants throughout the children’s center to create a pleasant indoor environment.

▲ POSCO-CCPC employees carried out an environmental cleanup at the Yulin river’s Long Xing Estuary near the company’s head office and collected waste by going around approximately 2 kilometers near the river road for two hours.

▲ POSCO-CDPC employees held a handmade craft event with clay drawings with children at a Hong Yan daycare center near the company’s head office.

▲ POSCO-CFPC employees held a Healing Summer event by inviting families of the disabled. They invited the families of the disabled to the Guangdong Industrial Design Complex and ran a program where the visitors could experience Guangdong Province’s industrial development and POSCO’s corporate culture.

▲ POSCO-CHPC employees visited a Wuhan Yi De senior welfare center, where they have been carrying out volunteer services for 9 years, and spent time with the seniors making zongzi, a traditional food for the Dragon Boat Festival.

▲ POSCO-CJPC employees visited a Jilin Chao Yang special school near the head office, laid out safety mats so that the children could rest comfortably and provided snacks.

▲ POSCO-CLPC employees donated five electric nursing beds to vulnerable groups living near the factory with donations collected through 1% Sharing activities.

▲ POSCO-CQPC employees visited the Qing Yu Village, a sister village that was having difficulties with timely harvesting due to a shortage of workers, helped the village people to harvest and package cherries, and donated the cherries to a local senior center.

▲ POSCO-CTPC employees collected 309 sets of old clothes that they no longer used and donated them to a public interest collection platform.

▲ POSCO-CWPC employees carried out activities to remove weeds from the factory’s idle site.

▲ POSCO-CYPC employees visited the beach in downtown Yantai, where many tourists go in the summer, and carried out environmental cleanup activities to pick up trash and put its ESG management philosophy into practice.

▲ POSCO-Japan PC employees carried out environmental cleanup activities for five days in the Toyohashi Sports Complex near the factory, the fishing park in the Yokkaichi Kasumigaura Industrial Complex, the area around the Kawasaki factory, and the vicinity of Higashi Ogishima West Park.

▲ POSCO-PMPC employees cleaned the roads and sewers to prevent flooding that may occur during typhoons and the rainy season in the First Philippine Industrial Park where the company is located.

▲ POSCO-Malaysia employees performed environmental cleanup at community halls and kindergartens near the company by trimming grass, painting old goalposts, cleaning the inside and outside of buildings, and collecting waste.

▲ All POSCO-MKPC’s Klang Factory employees walked a 2-kilometer path between the Klang Factory entrance and surrounding villages to collect waste to participate in the “Zero Disposable Plastic” waste reduction campaign.

▲ About 30 employees of PY NIVA (POSCO YAMATO VINA) purchased paint supplies using funds raised through the 1% Sharing program, repainted tables and chairs they previously donated to an elementary school near the company, and delivered scholarships of 10 million dong to students in need.

▲ POSCO-VST’s 130 employees went around the company to collect roadside trash and provided a fun time by holding a charity bazaar and traditional game competition at a nearby elementary school.

▲ POSCO-Vietnam’s 90 employees visited two orphanages near the company’s head office and had a good time with the children by distributing snacks and school supplies.

▲ POSCO E&C Vietnam employees visited Phuc Lam Orphanage Center and donated daily necessities, school supplies, and a support fund of about 1.6 million won to instill hope in children for the future.

▲ POSCO-Thailand PC’s 67 employees carried out the protection of the maritime ecosystem jointly with the Chonburi Province Coral Preservation Foundation by planting coral seedlings in the sea. Their activities were introduced in detail on the Foundation’s SNS.

▲ POSCO-TCS employees visited nearby Banpusai Elementary School, donated shoe racks and created a vegetable garden. Moreover, they replaced toilets and lighting in old bathrooms and provided education on safety and hygiene to the students.

▲ POSCO-Thainox employees cleaned pedestrian paths near the local municipality office, cleaned drains in preparation for the rainy season, and visited welfare centers for children and people with disabilities to donate daily necessities and carry out activities such as ceiling repair and restroom maintenance. Moreover, they donated relief supplies to nearby emergency rescue teams and self-made bulletproof panels in bulletproof vests to police stations.

▲ POSCO-ISDC’s employees visited a nearby school in Mangao, donated educational TVs and water dispensers, provided English lessons for students, and planted eco-friendly mango trees with the children.

▲ POSCO-Maharashtra employees visited a welfare center for visually impaired students and donated various items, including food and school supplies, to help students grow up in a good environment.

▲ POSCO-IDPC’s employess donated 30 barricades for traffic control to the Casola Police Station in the region. Moreover, they participated in the Indian government’s “Clean India Vision Campaign” by picking up trash and cleaning roads near the office.

▲ POSCO-IAPC employees walked around the roadside in front of the center, picked up discarded trash, and planted seedlings, contributing to creating a pleasant community environment.

▲ POSCO-ICPC collected trash around drainage ditches and removed steel items such as bolts from roads to prepare for heavy monsoon rains and safety accidents around the Chennai Center. In addition, to increase the convenience of nearby residents, the area was cleaned up with pedestrian roads and maintenance.

▲ Fifty employees of POSCO-India Pune Processing Center (IPPC) planted 500 fruit tree seedlings, such as guava, custard apple, and sapota, at Lake Talegaon Dabhade near the company.

▲ POSCO-IJPC’s 28 employees visited a nearby nursing home to celebrate Family Day in Indonesia, prepared chicken porridge and drinks for senior adults, and made and installed handrails in the front yard and walking path.

▲ PT. Krakatau POSCO employees visited a local school for the disabled, built a garden, repainted oil painting, and cooperated with the Ministry of Oceans and Fisheries to build an artificial fish reef at Ketapang Beach and clean up the shore. Furthermore, they participated in a blood donation event, delivering 221 blood bags to the Red Cross. They also conducted environmental cleanup activities at five local landmarks with military units and municipal officials from the Cilegon area.

In Part 2 of ‘2024 Global Volunteer Week’ overseas employee volunteer activities,
Overseas corporations in Turkey, Poland, the United States, etc.
Lively volunteer activities participated by POSCO International executives and employees
We will report on the scene. Thank you for your interest!

Namaste. This phrase might be familiar to many people as a greeting used in India. The literal meaning of this is, “I pay my respect to the gods in you,” so this can be a greeting to the user as well. India is filled with respect for each individual’s beliefs and ideals and is a place people want to visit at least once in their lifetime.

POSCO Newsroom presents to you the story of a POSCO expatriate in India who is working to enhance the status of global steelmaker POSCO. Today’s star is POSCO’s Yang-Su Lim, working in POSCO India PC (Processing Center), Ahmedabad. Meet Lim’s vivid story that he had gone through since the completion of the Processing Center.

Hello. I’m Yang-Su Lim, and I work at the Processing Center in Ahmedabad, India. Here in India, POSCO operates POSCO-Maharashtra (Maharashtra), a Cold Rolling subsidiary, POSCO-ISDC (India), a distribution subsidiary, and four Cold Rolling Processing Centers (Delhi, Chennai, Ahmedabad, and Pune).

The Ahmedabad Processing Center is located in the Sanand Industrial Complex, Gujarat, about 900 kilometers southwest of New Delhi, the capital of India. The area has recently emerged as an automotive manufacturing hub in India.

The Center, in charge of processing Cold Rolled steel, opened in April 2016. I came here as a POSCO expatriate in June 2015, while construction was still in progress.

▲ In 2018, POSCO merged three Indian processing centers — Delhi, Chennai, and Ahmedabad — into POSCO India PC to maximize operating synergy.

The Ahmedabad Processing Center is divided into three sectors — a factory with processing facilities, an office building, and a cafeteria — and has an annual processing capacity of 120,000 tons. As of 2019, there are a total of 200 employees, including two expatriates, 77 local employees, and 128 employees of partner companies. Our main task is to process materials from POSCO headquarter and overseas manufacturing subsidiaries into the forms desired by clients. We are also actively engaged in other affairs and contribution activities for the local community.

The best selling product at our company is automotive steel plates. Global automakers such as Ford, Suzuki, Tata, M.G Motor, and domestic automotive part markers such as JBM, Victora, and Vee-Gee are our major clients. Home appliance companies, including JCI-Hitachi and Highly Electric, and manufacturers of solar panel support structures are also some valuable clients.

When the processing center opened in Ahmedabad in 2016, sales stood at a mere 26,000 tons. Expectations were high, so it was a little disappointing. However, last year, as a result of all the efforts of our employees, we could boost sales to 140,000 tons, which is a growth of nearly six times — all within four years.

l Out in the Wild: Cutting Costs

I’m a general manager in the sales department, so I am in charge of all sales-related tasks, including client and demand development, material purchase, and bond management. At times, I have to switch between several roles, such as a ‘manufacturing manager’ in charge of production and quality, ‘a personnel manager’ in charge of the labor and human resources sector, and a ‘representative’ in meetings with local government agencies.

Five years have passed since I came to Ahmedabad. Sometimes I’m reminded of when I first arrived here. There was nothing but a container officer where I had countless meetings with architects to design the plant and optimize specifications of facilities. I also made numerous phone calls to my seniors in POSCO, Korea, who had much experience in the construction area. I remember talking with them on the phone the whole day.

To cut construction costs, all purchase orders for the construction were placed according to individual parts, so from the beginning, I had to meet separately with seven companies, including electricity, civil engineering, and interior companies. Since most of the construction work proceeded at the same time, there were some challenges because a delay in one sector led to a complete stop in the construction itself.

However, it was all worth it. We succeeded in saving investment costs by more than 1 million USD, and also we were able to understand the entire construction process of the processing center. Frankly, I couldn’t understand why I had to go through all the trouble during the construction period. But as the construction came to an end and I could see the plant and office building on the site, I felt really rewarded and proud.

▲ The Ahmedabad Processing Center under construction

l “It was perfect!”: Pioneering a New Market

Another memorable story would be “expanding sales by pioneering the high carbon hot-rolled steel (HR) market.”

In 2016, at the beginning of its establishment, the processing center faced difficulties in expanding sales since it supplied to global automakers solely. The center needed a breakthrough to survive in areas where demand for carbon steel was relatively low. While on market research at companies in various industries, we learned that there were several client companies nearby who were using high carbon steel.

To pioneer a new market, we conducted market research and sought to discover potential clients from December 2016. But it wasn’t easy at first since the steelmakers in the area already dominated the high carbon steel market. Client companies hesitated, saying that POSCO steel was excellent but expensive. Their existing partnership with the steelmakers was another problem. Six months passed without any significant outcome.

Amidst all the rejection and frustration, a Korean saying, “Dig a single well,” struck my mind. This proverb means that focusing on something wholeheartedly will yield satisfactory results. So the next day, I set off straight away to Ahmedabad Strips Pvt. Ltd. (ASPL), which is located near the center. I met with the person in charge every day and tried to form a close relationship, talking about Indian politics, current market conditions, and personal life. One day, something surprising happened. On a rainy day in July 2017, ASPL placed a trial order of POSCO’s high carbon hot-rolled steel and contracted 25 tons. How did I feel? It was as if I completed a full marathon.

“It was perfect.” This was the response we got from ASPL. After constant persuasion, we succeeded in getting additional orders. We were introduced to new client companies, and in 2017 alone, the contract volume reached a total of 300 tons. With new clients and a successful quarterly contract with ASPL, the contract quantity increased as well. As a result, in 2018, the center recorded sales of 3,000 tons, which is ten times higher than the previous year.

And this was just the beginning. The client said that it wished to increase the proportion of POSCO products. It was a moment when the efforts of our staff finally paid off. In April 2019, POSCO signed an MOU with ASPL to supply 10 thousand tons per year. We continued to develop and attract new clients and finally, in 2019, we were able to sell more than 6,000 tons.

▲ POSCO and ASPL signing an MOU in April 2019

The high carbon hot-rolled steel project is a typical example of POSCO’s philosophy, ‘Business with POSCO,’ which pursues shared growth with client companies. As of 2019, the high carbon hot-rolled steel acclaimed for approximately 5% of total sales at the Ahmedabad Processing Center, while ASPL was able to reduce costs and improve productivity with POSCO products. “Using POSCO products has improved the rate of error by more than 30%, and the productivity of rolled products by more than 1.5 times compared to the local products of India,” said an ASPL production manager.

l The COVID-19 Issue

With the rapid spread of COVID-19 and its impact on the economy, the Ahmedabad Processing Center is also doing its best to overcome the difficulties it faces. The center has formed a TF as a response to the COVID-19 issue. The TF manages the health of employees, quarantine status of the plant, transport vehicles, and partner companies as well, to prevent any case from occurring.

According to the guidelines from the Indian government, all companies within the nation had to shut down, and the Ahmedabad Processing Center also ceased operation temporarily from March 23. Currently, the center has resumed operation, but owing to the decrease in domestic demand, a reduction in sales seems to be inevitable.

The Indian government has announced four series of lock-down regarding COVID-19 from March 24 to May 31. However, in the case of ^*Lock-down 4.0 (May 18-May 31), measures have been relieved comparatively, allowing transportation and deliveries within the country. In the Lock-down 5.0, which is in effect from June 1, the central government has granted more authority to the state government resulting in the reactivation of local companies. However, restrictions are expected to continue in major cities, such as Delhi, Mumbai, Chennai, and Ahmedabad, where some confirmed cases are occurring.

As a measure to overcome the immediate crisis, all the employees at the center are doing their best to advance into the market and cut costs. Each employee is working with responsibility and ownership for the company. I hope that the economy will recover soon, and I am confident that this will give us a valuable lesson, and we can get through this situation and Jump-Up together.

I will definitely miss this place when I return home. But before then, I will do my best with the employees here at Ahmedabad to secure POSCO’s place in India.

▲ Click the image and find out more about POSCO overseas affiliates.

However, with closed borders and flights canceled, how could POSCO deliver face masks to its overseas subsidiaries? POSCO Newsroom looked into the details of this seemingly impossible mission.

CASE1. Indonesia
POSCO Group shipped 100,000 USD worth of COVID-19 test kits and relief supplies as well as 900,000 USD worth of face masks to Indonesia where PT.Krakatau POSCO (PT.KP) is located. The supplies helped in quarantine activities carried out by local communities and governments. The employees at PT.KP joined forces and took preventive measures against the COVID-19. As a result, PT.KP was able to continuously operate its plant without closing its facilities at all.

Irfan Afandi, the chairman of the labor union of PT.KP, expressed his thanks to POSCO CEO Jeong-Woo Choi through a letter describing how the face masks from the headquarter were well-distributed to all PT.KP employees and also to partner companies. He on behalf of all employees at PT.KP, also mentioned that all employees were deeply moved because the company supplied masks for their family members as well.

▲ The letter from Irfan Afandi (the chairman of the labor union of PT.KP)

Other than PT.KP, there are a total of nine POSCO Group companies expanding their businesses in Indonesia, including POSCO International’s PT. Bio Inti Agrindo (Palm oil farm) and PT.POSCO-Indonesia Inti (PT.PII), a Jakarta-based trading company.

The first death from COVID-19 in Brazil occurred in March. At that time, POSCO headquarters in Korea had already decided to provide face masks to all employees working at local business entities, business partners, and contractors, as well as all of their family members, and was striving to secure the supplies.

CASE2. Brazil
Must reach faster than the virus!
The first death from COVID-19 in Brazil occurred in March. At that time, POSCO headquarters in Korea had already decided to provide face masks to all employees and families, including group companies, partners, and joint ventures, as well as overseas subsidiaries, and was focusing on securing the supplies.

It was a race against time. With COVID-19 spreading rapidly since the beginning of April, acquiring new face masks was a difficult task, and employees in Brazil were using disposable masks for a week. While POSCO and POSCO ICT run offices in Rio de Janeiro and Sao Paulo respectively, many employees from POSCO, POSCO E&C, and POSCO ICT are working at CSP(Companhia Siderúrgica do Pecém), a joint steel company in Brazil. POSCO secured more than 10,000 face masks for all employees and their family members including those from Dongkuk Steel, a business partner in CSP, and shipped them via air on April 14.

The masks arrived at Miami Airport, U.S. on April 15, but faced another challenge. All flights to Brazil had been canceled. POSCO decided to deliver them by land transport — traveling 14.887 km from Miami to Fortaleza, Brazil.

Transporting 14,887 km: from Miami to Fortaleza
To safely transport the mask, POSCO quickly contacted the most reliable company in the region. The specially packed face masks traveled through Miami, Panama, and Colombia, and reached its final destination, Fortaleza. After going through three days of the complicated customs clearance process, they were finally handed over to CSP on April 25. Three days after the arrival of the masks, the number of deaths in Brazil reached 5,000 and exceeded 10,000 on May 9. As of June 2, the toll stands at 30,000.

A CSP employee, who received the mask, expressed his gratitude on PBN, POSCO’s internal broadcasting station. “We appreciate all the efforts POSCO has put into providing the face masks — not just for the employees but also for the whole family.”, he said.

CASE3. India
New confirmed case occurs at airport customs, delivery delayed for 15 days.
In India, strong preventive measures were being taken due to the spread of COVID-19, including the closure of the country. In fact economic activity was paralyzed across the country. The number of airline flights decreased dramatically, including road closures, making it difficult to secure flights. POSCO managed to secure a flight but faced another challenge — customs. The multi-use face masks needed a guarantee from the local government, stating that they were relief goods. POSCO resolved the issue by closely cooperating with the customs and local government. Just when all seemed to go fine, a new COVID-19 confirmed case occurred in the airport customs. The entire airport was shut down, and the face masks were retained there for 15 days. After overcoming these series of challenges, the airport was reopened, and delivery resumed. The face masks arrived safely to the Indian subsidiary on May 8.

CASE4. Europe
Drilling through closed borders, into Europe.
The virus is on a rapid spread in Europe, especially in Italy and Spain. In the case of Italy, all borders of the country were closed, and all businesses faced temporary closure, except for essential industries. In this situation, POSCO-ITPC, a local processing center, urgently requested face masks. Although all borders were closed, fortunately, cargo planes from Korea were operated once a week. After several requests, POSCO succeeded in shipping the goods to Italy.

“Getting certification is nearly impossible if there’s no record of export to Europe.”
For other European countries, getting certification required for customs clearance was a major issue. The face masks were already exported to the U.S. and Hong Kong, but it had no record of exports to Europe, making it difficult to get a certification. It seemed that the procedure would take several months, However, acknowledging the urgent matter, the local customs finally accepted POSCO’s request in the end. At last, the face masks were delivered to various parts of Europe, including Germany, Belgium, France, Poland, and Slovakia.

What kind of face masks were delivered to POSCO Overseas employees?

▲ Multi-use face masks that were shipped to the POSCO E&C office in Abu Dhabi, UAE

Under the pharmaceutical law, face masks are designated as non-medical products and thus approved by the Ministry of Food and Drug Safety (MFDS). There are two types of face masks: a surgical mask is one and respirators (anti-dust masks) the other. The MFDS restricted exports of two types of masks that have a KF certification (respirators), so POSCO secured multi-use masks that are as efficient as KF94 masks and distributed them to all employees both in Korea and abroad. The multi-use masks made with new copper materials have an antibacterial effect. They can be reused up to three months, and are able to retain its effectiveness.

CASE5. America
The confirmed case of a dispatched employee & the rapid spread of COVID-19
In March, POSCO-America, POSCO’s business office in the U.S., requested for multi-use masks. It reported that a dispatched employee working at POSCO-AAPC, a local processing center, was confirmed of the virus, and two more employees at POSCO-America and POSCO-Mexico were being tested. There was a great deal of difficulty in securing a flight to the United States, but POSCO accomplished the task once again. On March 29, the masks were sent on a night flight and arrived at Atlanta airport the next day. After going through customs clearance, the masks were distributed to Atlanta, Washington, Houston, Detroit, and Mexico City.

In March, POSCO-America also donated eight devices for video calling to the Charlie Norwood VA Medical Center (Fisher House), where veterans who participated in the Korean War reside, in Augusta, Georgia. (See article)

The Indian Art Museum located at the heart of the Gangnam area in Seoul, Korea, is one of the many institutions that aim to provide more opportunities for the public to learn about the exquisite craftsmanship of India’s metal art. The museum opened in the year 2000 and most pieces exhibited in the museum are from the personal collection of the museum director, Yang-Sik Kim. Kim has collected about 2,000 Indian artifacts for the past 40 years.

┃Little India in Gangnam

To celebrate its eighth year anniversary, the Indian Art Museum is currently holding a special exhibition on metal crafts. Stepping into the museum, murals, armoires and various handcrafts welcome the visitors. The murals lead the visitors up to the second floor where the museum’s permanent collection is on display through which visitors can get a glimpse of India’s history, religion, craftworks, musical instruments, and lifestyles. Special exhibitions of various themes such as paintings, crafts, and textile art are also located on the same floor.

In India, numerous artifacts such as terracotta seals, accessories, as well as ancient currencies are still being excavated from around the Indus Valley Civilization area. These relics are not just snapshots in school textbooks. Because of India’s deep connection to its religion, the relics are still making a profound impact on artistic communities, as more modern artisans actively employ ancient techniques in their work. In this exhibition, age-old techniques are reincarnated in the form of contemporary art.

┃Helping the Religious Culture Bloom

India is the birthplace of four of the world’s major religions — Hinduism, Jainism, Buddhism, and Sikhism. As almost 80% of the Indian population identify themselves as Hindus, the 33 million gods in Hinduism naturally provided an atmosphere for creating many metal statues for worship.

At the Indian Art Museum in Seoul, there were also many metal deity figures on display. Krishna, a principal deity in Hinduism, wearing a turban with a feather on top, holds a quintessential bamboo pipe in his hand. Also on display is the goddess of wealth Lakshmi, the wife of Vishnu — Vishnu is one of the three gods responsible for creation, upkeep and destruction of the world.  Lakshmi is usually depicted as a beautiful woman of golden complexion, with four hands, sitting or standing on a full-bloomed lotus and holding a lotus bud.

A majority of Hindus have a shrine in their home where they can perform a prayer ritual called ‘Puja’, which is performed to receive blessings in this and the next life and ultimately reach the state of moksha, a concept similar to the Buddhist concept of nirvana. A Puja ritual is performed by burning incense and offering tribute to deity while chanting a prayer; and it involves items most of which are made of metal, such as lamps, spoons, kettles, and plates.

For the people of India, spirituality is simply a way of life. It’s easy to see why their metal crafts are deeply rooted in every aspect of their daily lives.

The most sacred part of the Puja ritual is the cleansing of the deity figure(s) as well as the waving of a burning lamp, and metal lamps of various shapes were created for this purpose.

┃Dhokra Reincarnated

Indian metal crafts are known for using the Dhokra technique, which is the lost-wax casting technique that has been passed from generation to generation. The Dhokra is one of the earliest and most advanced methods of metal casting known to human civilization. Its roots can be traced back 5,000 years to the ancient city of Mohenjo-Daro in the Indus Valley Civilization.

To illustrate the Dhokra technique: a basic clay model in the shape of the final cast image is made, which is then covered with wax. The wax is then shaped and carved in finer designs and decorations. Then a layer of clay is applied to the object to create a mold, into which hot metal is poured once the clay is cooked. Simply put, the technique allows the metal to be molded in different forms using a clay mold. Most of the work exhibited in the museum were produced using the Dhokra technique.

Also on display is ‘Dancing Girl’ of Mohenjo-Daro, the oldest metal-work known to date, which was also made using the Dhokra method. The Dhokra technique had spread widely to other countries including Malaysia, Egypt, China, and Korea.

The evidence that India’s Iron Age culture reached all the way to the Korean Peninsula can be found in the tale of King Suro (born in 42 A.D.) and Queen Heo, a princess from India, of Korea’s ancient kingdom of Kaya. This interracial marriage, which was quite uncommon at the time, indicates that Kaya was actively engaged in overseas relations; and it is speculated that the Iron Age culture of India that was introduced to Kaya at the time played a crucial role in strengthening Kaya’s sovereignty.

┃Why the Love of Metal Accessories?

India’s state-of-the-art metal craft can be partially attributed to their rich mineral resources. The craft was used to create everyday objects as well as accessories. In India, men and women of all ages love to accessorize. In the Indian Art Museum especially, accessories were one of the most-visited exhibitions. Accessories can be made from any source but gold and silver were most favored. At first, visitors may be drawn towards the colorful details of the accessories. After looking at them more carefully, the visitors can really appreciate the high level of craftsmanship and the amount of effort it took to create them.

India’s long love affair with their accessories is well-known. They believe gold earrings can help chase away diseases for children. Indian women wear metals both for decoration, but also for health — they think metals help boost metabolism. That’s why so many Indian women are seen wearing metal accessories, from head to toe.

┃Metal Crafts as Everyday Objects

In addition to accessories, metal crafts were also used to create many household items in India. Unlike Europe or Middle Eastern countries where glass and ceramics are more commonly used, many Indian people use metals to make everyday objects. The household items exhibited at the museum display exceptional craftsmanship, with vibrant colors and ornate patterns.

One of the most commonplace household items made of metal is a water pot. Usually made of bronze, copper, or metal, big water pots have a spout and a flat surface. Kettles and other containers used for cleansing and praying rituals come in many different shapes and sizes.

Indians also love to accessorize architectural elements like doors and windows. This type of metal decoration often embodies human or animal figures, which are believed to protect houses from animal attacks. It also signifies wealth.

Even though the scale of the exhibition is relatively modest, the Indian Art Museum provides a great introduction to both the past and the present of India’s metal art scene. For Seoulians at least, being able to experience all this right from their city is an added bonus. Together with metal crafts, visitors can also get a glimpse of India’s textile crafts, with unique dying techniques and beautiful embroidery patterns. Furthermore, the museum is also running hands-on activity programs like, making handkerchiefs traditional embroideries or getting henna tattoos.

They also have every incentive to do so. From 2010 to 2016, the price of wind and solar energy dropped by 60 and 80 percent, respectively. With the global demand for energy projected to rise 30 percent by 2040, green energy producers and related manufacturers will see an increase in business activity, including the steel industry. Steel is used to produce every single type of renewable energy, and demand for high-quality steel is looking to increase.

Take a look at some of the first movers transitioning to renewable energy and the biggest drivers of renewable energy demand in the global market.  

SEE ALSO: Building a Green Energy Future with Steel

Google, the biggest corporate consumer of renewable energy

At the end of 2017, Google purchased 3 gigawatts of renewable energy, enough to power all of its 15 data centers and offices around the world for an entire year. Google started purchasing wind power from a farm in Iowa back in 2010. Today, Google purchases most of its renewable energy from wind and solar energy farms in South Dakota, Oklahoma and Iowa.

Inside Google’s colorful and green data centers. (Source: Business Insider)

What’s significant about Google’s renewable energy consumption is that even if it does not use up all of the energy for its own operations, the company sells it back into the market in regions where they operate. Then, they retire their Renewable Energy Certificates (RECs), meaning it is no longer re-usable or re-issuable. In doing so, it removes energy supplies from the market and forces producers to keep generating new renewable energy supplies, instead of trading existing RECs. Google is fully backing the renewable energy industry, creating more business for generators and materials suppliers such as steel.

SEE ALSO: India: A Rising Sun in the Global Renewable Energy Industry

With the rapid growth of internet-based services, data centers are also increasing, engulfing extensive amounts of energy. Data centers already account for 3 percent of the world’s entire electricity consumption, and 2 percent of total greenhouse gas emissions, equivalent to that of the airline industry. It’s a relief that companies like Google, with a growing reliance on data centers, are finding sustainable ways to fuel their business, and other companies are following suit.

Apple’s green data centers

Apple is another company that is making bold strides toward renewable energy. The company stated all of its data centers run on 100 percent renewable energy and its operations over 23 different countries run on 93 percent renewable energy.

Apple’s data centers run on 100 percent renewable energy. (Source: Digital Trends)

Apple joined RE100 in 2016, but the company is no newcomer to green energy. In 2015, Apple issued USD 1.5 billion in green bonds to finance eco-friendly business endeavors. Then in 2017, Apple issued another USD 1 billion in green bonds in response to U.S. President Donald Trump’s withdrawal from the Paris climate agreement.

In 2017, President Trump shocked the world by withdrawing the U.S. from the Paris climate agreement. (Source: Fortune)

Because Apple’s business also includes manufacturers who do not follow the same sustainable practices, Apple’s next challenge is to filter through their suppliers and select those that are committed to powering their operations with renewable energy. So far, 8 major suppliers have come on board.

Microsoft and Facebook are on their way

Microsoft’s global operations have been fully powered by renewable energy since 2014. This includes manufacturing, licensing and logistics. All of its data centers are 100 percent carbon neutral, but Microsoft is planning a slow but sure transition towards renewable energy. As of now, about 44 percent of the electricity that powers Microsoft data centers come from wind, solar and hydropower, and their first target is to reach 50 percent by the end of this year. They have also stated they will strive for 60 percent in the next 10 years.

Microsoft is building new data centers all over the world, including the UK (pictured), and plans to run them on green energy. (Source: WindowsAble)

Just like Microsoft, Facebook looks to power 50 percent of all its data centers with renewable energy by the end of this year after successfully reaching its 25 percent target back in 2015. Facebook has a large presence all over the globe, and already, their data centers inLuleå, Sweden, Altoona, Iowa, Fort Worth, Texas and their Menlo Park headquarters are running on 100 percent green energy. Moreover, Facebook plans to power their newest data centers to be built in Ireland, Denmark, New Mexico, Nebraska, Ohio and Virginia with renewable energy.

Facebook’s newest data center in Virginia will run on 100 percent renewable energy. (Source: Adweek)

The largest and most influential corporations in the world that operate the ever-growing, energy-extensive data centers are making the switch to green energy. Their changing business practices will further boost the renewable energy industry, create new jobs and open new business opportunities for the steel industry. As steel plays a vital role in supplying parts for renewable energy infrastructure, high-quality steel solutions will be in increasingly high demand.  

Cover photo courtesy of Rambus.

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.

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.

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

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

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.

This means that data from city dwellers’ devices and their interaction with the physical city will determine how the government allocates resources and even influence the private sector as well. Although major developing smart cities are inspired by technology, old-school construction resources like steel are still required.

Here’s a look at where the next wave of smart cities will emerge and what opportunities lie ahead.

Countries Ripe for Smart Development

The major developing cities to watch are located in India, China and Africa. These areas of the world are ripe for growth, and what they have in common is a vast amount of land. Before modern ICT and IoT were available, it was almost impossible to imagine a way to uniformly connect these large areas into a single city. However, thanks to technology, governments will be able to bring greater numbers of people together and better manage resources for all. And development is already well underway.

India

In India, the “world’s oldest city” is being developed into a smart city. The city is called Varanasi, and it’s a holy place for the Hindu religion. However, its outdated infrastructure has created a demand for rejuvenation, and Varanasi’s renovation plans involve a lot of steel. With plans to outpace Japan as the second largest producer of steel, Varanasi will be rapidly expanding its own production capacity and turning to the global steel industry for material and technological support. Planned improvements to Varanasi include creating more affordable housing, improving the public transportation system and upgrading the sanitation system. All three of these improvements are major undertakings, and all three have roots in steel. Creating new housing structures, rail systems and modern sanitation will boost steel consumption.

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

A model of the planned smart city in Dholera, in southern Gujarat, India. (Source: Cities Digest)

Aside from Varanasi, there were nearly 100 cities considered for smart city development in India, and approximately 20 of those have been approved by the Indian government for funding. The smart cities on India’s shortlist come from a variety of regions. This redevelopment project is part of a larger goal by the Indian government to bring the large country together. By implementing smart city technology throughout the vast country, India will be able to create a better-organized society.

China

China is rapidly developing its smart cities. With plenty of funding and technology to spare, the Chinese government has earmarked 500 cities for smart city development. While the original goal was to complete the transformation for all 500 cities by the end of 2017, more than half of the listed cities are still undergoing development.

So far, Qingdao, Hangzhou and Xiamen cities are ranked at the top for smart city governance according to the National Development and Reform Commission and the China Center for Urban Development. These cities are already equipped with wifi internet service on buses, smart register and pay services and robots that interact with citizens on a daily basis. Hangzhou, in particular, has been a sort of test tube for Alibaba’s City Brain project where they gathered massive amounts of data for artificial intelligence (AI) to process and make decisions with. The technology has drastically improved the city’s efficiency by decreasing traffic and the time it takes to respond to emergencies. As a result, City Brain will be exported to and implemented in other Chinese cities. Although not everyone is sold on the idea because the technology may put citizens’ privacy at risk, it is still expected to speed up smart city implementation all over China.

Tianjin City is one of the cities in China developing into a smart city. (Source: Bosch)

These cities will require support from the steel industry to develop and engineer high-quality, high-traffic amenities with technology at the core. Similar to Varanasi, many Chinese city projects will initially focus on housing and transportation upgrades.

SEE ALSO: Ask an Expert: 3 Managers Explain POSCO China’s Success in Challenging Chinese Market

Africa

In Africa, over 300 cities will transition into smart cities, but many development projects are facing delays getting off the ground. Much of Africa is in need of establishing standard city amenities like city government offices, schools and an open market for privately-owned businesses. Nevertheless, the region presents a tremendous opportunity for growth, and Africa’s smart cities may become some of the most efficient locations around the world.

The Modderfontein Smart City is being developed in Johannesburg by Chinese firm Zendai. (Source: Future Cape Town)

Because there is a lack of complex infrastructure, these smart cities will be built almost from scratch, allowing the people of the city to benefit from a more customized smart-city technology. Instead of working around a historical route or building, African smart cities have the flexibility to transition into smart cities optimized for the exact needs of their developing governments, education systems and business communities.

The construction of African smart cities will start from scratch. (Source: SOFREP)

This is a city planner’s dream come true. And it’s ripe for steel consumption. The steel industry can provide high-quality materials and technologies, ensuring the best construction methods and materials from the onset. Without having to re-engineer structures, African smart cities are expected to be state of the art.

While opportunities are vast in this new arena of development, many of the top steel companies have already signed contracts with developing countries to assist with smart city production. But that doesn’t mean all of the work has been assigned. With thousands of cities slated to go smart within the next five years, the steel industry will have many opportunities and play a large role in the redevelopment of these communities. Steel companies that have an eye for technology and the highest quality products will be highly sought after in the years to come.

Cover photo courtesy of IoT India Magazine.