The purpose of this program was to enhance their understanding of artificial intelligence and new steel products in order to improve the competitiveness of overseas subsidiaries by spreading POSCO Smart Solutions.

At first, in the lecture about ‘Smart Technology and Business Model Innovation,’ they learned about the influence of smart technologies, such as the 4th Industrial Revolution, big data and artificial intelligence, on business models, and in the lecture about ‘Big Data and Cases that Can Be Utilized in Manufacturing,’ they reinforced their understanding of big data modeling.

Also, they learned about Smart POSCO, such as the concept of POSCO Smart Solutions, key activities, CES 2018 and smart factory success stories, creating an opportunity to spread it to overseas subsidiaries.

In addition, they gained knowledge of new steel products such as POSCO Magnesium Alloy Coating Product (PosMAC), thick plate product (high manganese steel), automotive steel (giga steel) and electrical steel (Hyper NO), and shared relevant cases to expand solution marketing in overseas markets.

POSCO ICT Head of the New Business Development Team Mi-hwa Park during POSCO Smart Solution and CES 2018 at Songdo Convention Center.

The participants said, “The brief, but well-organized program was quite useful in that we were able to gain a deep understanding of the trends in information technology, POSCO Smart Solutions and our new products, and learn how to apply them to overseas subsidiaries. We will make efforts to spread POSCO Smart Solutions throughout our overseas subsidiaries.”

Meanwhile, POSCO Group University is planning to provide education on Industrial Revolution 4.0 and POSCO Smart Solutions for new local leaders and general managers to disseminate the necessity of Smartization.

What’s more, manufacturing is no longer a rigid industry that produces uniform, one-sided goods. There is constant communication between customers and businesses for hyper-customization. Not only that, machines and products communicate within a smart factory, and factories exchange data with other factories. Manufacturing is no longer limited to production plants. Moreover, the data generated in the manufacturing process is combined with customer information, and a new service can be created. This combination of manufacturing and services is resulting in creation of added value. In the midst of such drastic change, how can companies stay competitive?

Staying Competitive Through Connection and Convergence

Global manufacturing companies are at the forefront of the 4th Industrial Revolution, as evident in their smart factories. A smart factory collects data generated from the production process using ICT technology, and the system controls all processes from material input to the final product. This has led to flexible production systems with the ability to make various products in one factory or to expand the range of products on the basis of connectivity. Typically, when a company builds a smart factory, it can improve productivity by 20 to 30 percent. A 20 percent improvement in efficiency in the manufacturing sector is a significant, outright increase in global competitiveness.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

Siemens Electronics Manufacturing Plant incorporates robotics, AI and IoT to its production processes. (Source: Zawya)

If the productivity of a plant can be improved through smartization, it is important to also think about connectivity with the ecosystem that exists outside of the plant. Once a smart factory is built, all the data from customer orders to production and delivery are collected in a system via sensors. The customer, product and production data create meaningful connections with each other and provide extensive insight. Examples of added value creation through meaningful connections include hyper-customized goods, data-driven after-sales services to customers and collaboration among companies connected within the smart factory’s external ecosystem. Such advancements will lead greater product quality, production stability as well as shortened delivery times between value chain suppliers.

The Adidas Speed Factory and GE Brilliant Factory are examples of successful smart factories. Adidas customers choose the materials, colors and design of their sneakers, and have them manufactured and shipped within 24 hours in an automated factory.

GE has built a system that can produce all of their widely-diverse products in one factory. When the factory receives customer orders, it operates in a flexible production system which starts with the necessary raw materials, inputted by the automated scheduling system that controls the entire production process, including the final distribution system.

The Future of Manufacturing

Overall, the adoption of innovative changes in the manufacturing sector is likely to progress from lighter industries to the heavy industries, from B2C to B2B sectors. Small plants, quick manufacturing and B2C companies can more readily adapt to rapid technological and market changes. On the other hand, heavy industries like steel and B2B companies with continuous and heavy manufacturing, large production volume and numerous linked companies are likely to be slower to adapt to changes.

It is much more difficult for traditional, heavy industries to adapt to changes. (Source: Live Mint)

For example, adapting to the changes of the 4th Industrial Revolution in the steel industry may be slow, but it is inevitable. What’s more, the long-term adaptation process is more likely to be systematic and deliberate.

As a leading company in the global steel industry, POSCO is pursuing a long-term, systematic “Grand Design” to reinvent its systems to align with the changes of the 4th Industrial Revolution.

First, POSCO built a pilot smart factory in their steel mill, Gwangyang Steelworks, in 2015 that is currently in operation. The company used IoT to collect big data on site, analyze it in real time and build a smart factory that enables optimal control through AI and self-learning. As a result, the Gwangyang Steelworks is reaping the benefits of a smart factory not only in cost reduction but also in improved steel quality, minimized malfunctions and a safe and stable production environment. This year, POSCO plans to expand and apply smart factories to all of its production processes.

POSCO built a smart factory in Gwangyang Steel Mill.

Smart factory application throughout the entire steel mill will improve overall efficiency through a flexible production system. In addition, the factory will be able to respond directly to various customers in real time based on platform construction with customers within the connected ecosystem. The customized characteristics and design of the steel grade for each customer can be applied to production in real time.

SEE ALSO: How Factories Produce Steel – the Smart Way

Ultimately, a smart ecosystem that links manufacturing, processing and distribution with customer input will lead to a new, innovative ecosystem within the steel industry. In Europe, some companies are experimenting with material libraries and steel distribution platforms. The material library displays a variety of materials for customers to see, touch and test the workability and performance of the materials, and get information about the characteristics, design and delivery times through the order platform. Customers can designate the shipment date on the spot. This will be one of the new promising business models that steel and other material companies will strive towards in the coming future.

POSCO’s Grand Design includes a step-by-step approach to smart factories to expand the use of IoT, AI and Big Data in its production systems. To this end, POSCO ICT has developed PosFrame, a standard software platform that collects basic data of production processes and collectively manages, controls and analyzes the information.

POSCO uses its software platform, PosFrame, for data collection and analysis.

When the software becomes standardized and reliable enough to extend to other sectors, it will be applied to other business areas such as energy and construction, as well as to POSCO’s affiliates.

Manufacturers will have to take into account the heavy production environment, the slow industrial change cycle and the complexity of related industries and affiliates to implement the most effective, long-term, systematic upgrades to its production systems. This will result in a brand-new production and business model for manufacturing companies that will align with the new environment of the 4th Industrial Revolution.

Cover photo courtesy of Sputnik International.

In the opening speech, CEO Kwon remarked, “As global economic conditions are rapidly changing, our two countries must work together to expand our cooperative relationship,” and emphasized the protection of free trade and reinforced complementary cooperation between the two countries.

At the general meeting, the panelists of the two countries discussed industries with potential for bilateral cooperation including investment, resources and infrastructure, the 4th Industrial Revolution, and food and agro-livestock.

In particular, the panelists discussed ways to uncover new industries in line with the 4th Industrial Revolution, methods of treating energy waste, and joint development of the health and food industries, and current global issues.

The Korean delegation to this annual meeting consisted of over 50 people, including CEO Kwon, Chairman of SM Group Oh-hyun Woo, GS E&C President & CEO Sang-gi Lee and Lotte International Senior Managing Director Gi-ho Jeong. The Korean council members attended the joint meeting, and visited the Startup Precinct in the outskirts of Brisbane, and discussed the venture firms and start-up ecosystem of Australia.

The AKBC is the only private economic consultative organization of the two countries. It has been promoting bilateral cooperation between the two countries for about 40 years since its establishment in 1979.

Photo cover courtesy of Federation of Korean Industries.

The fourth industrial revolution is heralded by big data, the internet of things, artificial intelligence, virtual reality and augmented reality, 3D printing and other technological innovations. It’s happening at rapid speed. The steel industry needs to keep up and take advantage of all that this revolution has to offer.

However, the industrial revolution did not happen overnight, and advancements in human development traces back to the Iron Age.  

The Iron Age and How it Impacted Civilization

After the Bronze Age was the Iron Age. People started using iron and steel for tools. This was a huge shift for the world, and helped improve nearly all spheres of life from the spread of written language to more effective agricultural practices. Iron offered more choice. People could forge this material into whatever they needed for tools, weapons, or ornaments and decor.

Blacksmiths would have used tools like this during the Iron Age.

Tools and weapons created during this era often used steel, which was a vast improvement on the bronze items from the previous age. Items made from steel were just as light as bronze, but stronger, so users were able to get more out of each item they created. The strength of these tools made it possible for farmers to plant and harvest more land, faster. It enabled people to sell or trade for livelihood.

The Iron Age is a great example of how the right materials can make life better for everyone.

The New Structure of Steel

As the world moves through the fourth industrial revolution, it is evident the same thing is happening. Instead of improvements in specific materials and tools, however, technology is changing things.

The steel production process can be completed autonomously if the fourth industrial revolution continues the way it is going. This means that manufacturers will be able to have very detailed and thorough control over production, using smart technology that will factor in every element from the surrounding environment to minute details of the material itself. The steel production process will be able to use real-time data to optimize every facet of operations, saving money and time.

Robot arms with artificial intelligence take part in the steel production process. (Source: Telenor Connexion)

The steel value chain is affected by changes in the provision of after-sales service, owing to new technology. Manufacturers can use smart technology to track how users interact with their completed products and offer better customer service as a result.

Again, real-time information comes into play, allowing steel companies to see exactly how orders are being created, fulfilled and used, as it is happening. Customer needs are met with ease and speed, all tracked and analyzed digitally.

Competition in the steel industry will be affected by this revolution, too. Competitors can see how other companies are using big data and automation to save money and offer a better customer experience, and use those details to revolutionize their offerings. Online steel transaction platforms make this transparency even more accessible, for companies and clients alike.

Implications on the Steel Industry

To keep up with this revolution, and make the most of it, steel companies need to understand the implications on the industry and plan for the future. New technology is only going to become more widespread, more common, and more advanced. Companies need to be ready to react.

Integrating technology and smart software is the ideal way for steel companies, and the industry at large, to take advantage of this new revolution and use it to create better products and better customer relationships.

To get an idea of how to best integrate new tech into existing steel practices, POSCO’s smart steel factory is a prime example, currently being tested at the Gwangyang Steel Mill. POSCO’s smart factories will collect and analyze all of the microdata generated in the steel production process, to determine the cause of every event that impacts quality or production in general.

An image of how POSCO’s Smart Factory will be run.

From facilities to energy and environment, to safety and conditions, the smart factory will monitor everything. And it will respond accordingly to make the best quality steel possible.

Self-learning artificial intelligence ensures that the process of steelmaking is carefully controlled, with adjustments made in real-time to directly and positively impact the result. The smart factories will use technology to fill the gaps where human capabilities are simply no match for software.

The world has come a long way since the Iron Age and through the various industrial revolutions. In the current fourth industrial revolution, steel companies have to take advantage of new technology and innovations by figuring out ways to apply them to steelmaking processes. POSCO has made this a top priority as it continues to research, educate and implement smart technologies to its production processes and materials and will lead the way for steel companies to follow through the fourth industrial revolution.   

Cover photo courtesy of Manufacturing Global.

As many as 700 people attended the forum including POSCO Group affiliate employees, as well as those of POSCO’s major suppliers, outsourcing partners and AI-related professors. Notably, employees from Nastech and Korinox, where POSCO is carrying out smart factory support projects, participated as well.

POSCO CEO Ohjoon Kwon watching a presentation at the forum

“POSCO must continue to take up the challenge of implementing a smart POSCO in preparation for the dawning of the 4th Industrial Revolution. We will apply smart technologies to all processes of the steel mills, as well as to management areas such as finance, HR and purchasing to realize the concept of smart management,” stated POSCO CEO Ohjoon Kwon. “We will actively share the results of POSCO’s smartization process with our group affiliates and customers.”

Mi-hwa Park, head of the POSCO Information Planning Department added, “To realize a smart POSCO, we started the Smart Solution Council headed by our CEO last year, and identified 141 smart projects which applied Big Data and AI to solve practical problems. Approximately 600 employees participated in the projects and reduced costs by KRW 15.7 billion.” She added, “We will develop a POSCO-style SME smart factory model to support innovations for the manufacturing sites of our SME customers and suppliers. Furthermore, we will contribute to fostering SMEs and creating jobs by providing a lighter version of the PosFrame, developed by POSCO, as a customized smart platform for SMEs.”

POSCO CEO Ohjoon Kwon with the excellence award recipients

POSCO also recognized projects that applied Big Data and AI, for excellence in the steel production category. Out of the four, one improved the flatness of steel sheets and another provided improved technology for slab production. The “3D-based design/construction quality improvement” project that uses POSCO E&C’s Virtual Construction to predict risks, and the “power generation output through condenser performance diagnostics” project that can accurately detect errors in POSCO Energy’s power plants were also among those selected.

Forum participants were given an opportunity to experience POSCO’s smart solution platform PosFrame firsthand. PosFrame combines operational insights and IT technology to collect Big Data as well as process and monitor data in a way that allows participants to experience the reality of “Smart POSCO.” It was one of the most popular features of the forum among participants.

POSCO CEO Ohjoon Kwon looking at a PosFrame platform

POSCO also announced its plan to standardize the technologies and processes developed through smart projects, turn them into a technical package and actively incorporate them into its “Smart Solution” business to create added value.

Ki-won Na, CEO of Shinheung Automotive Co., Ltd., an automotive parts maker, said, “We received a lot of ideas applicable to our operations from the case studies presented today, and if we learn about POSCO’s Big Data analysis and utilization techniques in more detail and apply them, I expect it will greatly contribute to improving our productivity.”

POSCO joined hands with POSTECH to launch an advanced AI course earlier this year and is currently training 25 internal AI experts so that they can apply their AI knowledge in their field to solve problems and thus lead the way for a smart POSCO.

Also, POSCO has begun providing free AI education to young, underprivileged jobseekers in July and is now training 100 youths per year on both theoretical and practical knowledge. POSCO is also planning to support the customized SME smart talent development project, including practical education on AI and Big Data skills, for its customers and suppliers.

POSCO is actively planning to complete its smartization, meaning it will apply its “Smart Factory” to all processes of the steel mills, and carry out its “Smart Solution” business, which combines POSCO’s product technologies and services with smart technologies.

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Jeremy Rifkin, the author of “The Third Industrial Revolution”, published in 2011, composed the overarching idea of an industrial revolution. Rifkin analyzed the first Industrial Revolution, which took place in the 19th century, as a phenomenon which resulted in an economic revival led the collaboration of coal and steam engines and communication methods, such as print. He also took apart the second major industrial revolution in the 20th century, accounting it for being responsible for the rapid economic growth that occurred from the combination of oil resources and electric power with other kinds of communication methods, telephones and televisions.

However, in the 21st century, with the reindustrialization of China and a spike in oil prices, Rifkin wrote about the end of the era of oil energy, mentioning the limitations of fossil fuels in leading another dramatic economic growth.

Rifkin diagnosed a change in the economic paradigm to new energy systems, such as solar and wind power energy. He also asserted that the 21st century economy will spark the third industrial revolution, dominated by a new system, which involves communicating through the internet based on bio-energy.

When the industry evolves to become an IoT-based smart factory and combines operation stages, such as product development, production, and distribution – ICT can innovate productivity, quality, production cost and even customer satisfaction, which possibly could lead to another economic revival. According to Jeremy Rifkin’s standard of classifying an industrial revolution, the fourth industrial revolution can be included to become a part of the third industrial revolution.

The World’s Industrial Revolution

The Ministry of Education and Science in Germany strived to seek for an innovative industrial output system that could solve the country’s current issues: overcome small businesses gradually losing competitiveness, cope with the revival of the United States’ cutting-edge manufacturing and chase China’s emerging capabilities of manufacturing. As a result, it came up with a new concept called “Industrie 4.0”. Germany adopted the idea as a national industrial strategy.

“Industrie 4.0” uses a cyber-physics linked system that enables an industrial facility’s digital factories and automatic factories to share every piece of operating data and predict the optimal operating condition.

This new concept of a smart factory system has gained the attention of many experts, and also became the model of the predicted fourth industrial revolution in this year’s Davos Forum. Klaus Schewab, the executive chairman of The World Economic Forum, asserted that when Germany’s “Industrie 4.0” model’s artificial intelligence is combined with genetic engineering, the basis of industry will change into an entirely different form, which will trigger the fourth industrial revolution.

Aside from this, the United States’ General Electric (GE) has started providing facility management services to their clients by installing sensors on the industrial facilities they produce, and have developed industrial internet technology to monitor and manage its facilities’ status in real time. This system allowed manufacturing businesses to become more than just a facility producer and provide a service that analyzes the existing conditions of facilities.

As the concept of smart factory system that adopted GE’s industrial internet technology and Germany’s cyber-physical system received a remark as an innovative case in manufacturing business, every government is starting to emulate such concept as their strategy to future industry.

Although the technology to automatically adjust facilities according to a product’s demand variation is commonly shown in cutting edge manufacturing factories, most of them are focused on mass production. When the quantity of the order is small, the production facilities’ conditions change and replacement of the components occurs frequently. Even the condition of the ingredient changes. This will lead to an increase in cost and a decrease in productivity.

Changing the quantity of production does not solve the problem, however. From receiving orders, raw material supply and demand, adjusting the facilities at each step, distribution within the factory to the supply chain – every step has to change according to the kinds and quantity of the products. Each stage has to share data to find the best production settings and minimize the possibility of error.

As the market evolved into the direction to provide personalized products for each customer, the industrial world faced a difficult task of selecting smart factories with flexible production systems.

POSCO’s Smart Factory

It is easy to imagine that the steel industry, which is classified as a sub-industry, will follow the traditional manufacturing method. However, the steel manufacturing process has been filled with equipment that continuously produces products in high-temperature and high-pressure environments, and has applied automatic operation methods from early on. The workers who were once in danger of working too closely to the equipment are now in charge of monitoring the operation of these facilities.

POSCO is already planning to turn the whole steel production process into a 21st century smart factory, and plans to complete a project that will convert all fields of equipment, quality, energy and safety management into the new system by 2017.

Smart Factory, a futuristic steelmaking process pursued by POSCO, is a factory that collects data in real time through an Internet of Things (IoT) sensor installed at factory facilities that operates autonomously. The collected data can be used for real time diagnoses and forecasts of the facility’s conditions, thereby maintaining a stable operating environment and also extending equipment life.

When the POSCO Smart Factory is realized, the facility management department will be able to analyze the facility’s information, such as sensor information, inspections, repairs and faults in the integrated center. Through a smart sensor that can check the operation status of the facility in real time, thus extending the service life by predicting and taking measures in advance. The worker wears wearable equipment to receive drawing information, and carries out the disassembly and assembly procedures of the equipment, so that perfect maintenance is possible.

In the production management sector, production is automatically determined by an unmanned intelligence system that analyzes field conditions such as quality, energy, and environment, separate from the production methods that depend on expert experience. Thus, by integrating an analysis of equipment-material-quality data and deriving the optimum operation pattern, it is possible to improve production efficiency and quality in sub-unit work.

In the quality management department, real time quality control is possible by monitoring all production processes. Because it is a continuous process that cannot be interrupted, it collects and analyzes factors such as equipment noise, vibration and temperature affecting the current quality to predict the possibility of failure. It also foresees the working conditions of the downstream process to prevent quality defects.

In the logistics management department, it will be possible to automate the entire process of transporting and storing materials and products within the production plant. From the unloading of materials to be imported, and thereby improving the efficiency of logistics management, the process will improve productivity and play a role in reducing costs. In addition, POSCO has built an automatic product recognition system to monitor the entry and exit management of products, until they are shipped from the factory and finally reach the distribution bases and customer warehouses.

In the environment and energy sector, harmful substances such as dust, sulfur and nitrogen compounds that are generated in factories are completely removed by a high-plasma method, and an eco-friendly plant is implemented. By analyzing energy consumption by plants and specific processes, POSCO aims to apply the optimal energy usage pattern.

The smart factory system also enhances safety standards. The safety management system automatically identifies workers approaching dangerous areas and prevents accidents by warning them in advance, recognizing life-threatening situations such as fires, explosions and gas leaks through sensors or CCTV images attached to the facilities.

In the facility engineering department, we can create a digital virtual factory for each plant and simulate the equipment and operation changes like the actual factory. This optimizes product design and saves costs and time by analyzing and customizing a new facility’s performance beforehand. Various kinds of test operations can be attempted at a virtual factory, so finding the optimal production condition for the actual factories will be one of its crucial advantages.

The smart factory that POSCO pursues is a state-of-the-art 21st century factory model incorporating all forms of innovations, including: IoT, Big Data, computer simulation, advanced robots, augmented reality, cyber security, integration of production and management systems and artificial intelligence. It can serve as a model for upcoming smart factories that will eventually appear in the steel industry, as well as in other industries all over the world. Because of its transformation into a smart factory, POSCO is expected to play an active role as an industry leader in pioneering future civilizations as it constantly keeps producing new steel products that provide new value.

Written by science technology columnist Dr. Junjeong Lee

The opinions expressed in this POSCO Report piece are the author’s own and do not necessarily reflect the views of POSCO.

Considered the “Steel City” of the United Kingdom, Sheffield was internationally known as a major hub in steel production during the 19^th century. It singlehandedly propelled the Industrial Revolution, establishing itself as the manufacturing center of the UK.

It ultimately sealed its reputation as a powerhouse synonymous with steel after a string of local innovations, including crucible and stainless steel.

However, Sheffield’s economy went into decline in the 20^th century due to the recession and rising global competition. It still managed to retain its powerful history, and in current times, is seeing a reincarnation of its former self.

It’s no longer the bustling picture of steel mills, forges and cutlery factories it once was, but Sheffield has created a new urban landscape for itself, filled with modern sculptures, an irreplicable cultural scene and a slew of remarkable universities.

Still, “Sheffield Steel” remains an important part of Sheffield’s identity — and through noteworthy attractions occupying its regions, it continues its solid legacy in steel.

Rounding out Sheffield’s Inventive History – Kelham Island Industrial Museum

Located in Sheffield’s oldest industrial districts, the Kelham Island Industrial Museum stands on a centrally located man-made island that is over 900-years-old, named after the town armourer at the time.

Since opening in 1982, the museum has featured Sheffield’s story of industrialization in various exhibitions – ranging from the city’s trading history to the legendary workmanship behind “Made in Sheffield” steel products.

Some of the can’t-miss sights of the museum include reconstructed examples of little mesters’ workshops, highlighting the craftspeople behind the city’s famous cutlery and tools, and England’s largest surviving Bessemer converter.

The Kelham Island Museum is one of the three heritage sites that make up the Sheffield Industrial Museums Trust (SIMT), and one of the city’s most popular cultural attractions.

A Day in the Life of a Victorian Steelworker – Abbeydale Industrial Hamlet

Residing in the south of the city, the Abbeydale Industrial Hamlet is another heritage site that plays a part in the SIMT.

Abbeydale Works was once the largest water-powered industrial site on the River Sheaf, and has since transformed into a historical gem offers a glimpse into what life was really like for steelworkers during the 18^th to 19^th centuries.

The former steelworks site was used for iron forging for 500 years, particularly for making scythes, and was one of the first factories to produce high-quality stainless steel.

It was eventually abandoned after advancements in industrial technology and now serves as a relic detailing the inner-workings of an original steel factory.

Cherished Metals – Millennium Gallery

Alongside numerous exhibitions featuring the best of the arts, the Millennium Gallery in Sheffield proper features a metalwork collection cataloging perhaps the most extensive gathering of Sheffield-made cutlery and other related objects.

Cutlery is one of Sheffield’s most storied commodities, and the museum preserves the artifacts’ world-renowned designs and craftsmanship for the public to see.

The museum opened in 2001 as a core part of Sheffield’s “Heart of the City” project, a major redevelopment effort initiated by the city to regenerate the city’s center.

In conjunction with the metalwork collection, the Millennium Gallery is also home to other collections featuring Sheffield’s history, including watercolors, drawings, illustrated books, manuscripts and coins. Temporary exhibitions showcasing the influence of Sheffield’s steel tradition on contemporary works can be seen from time to time.

A Steel Commune – Portland Works

Finally, Sheffield’s inclination towards breeding artisans can be pinpointed to Portland Works – an old cutlery factory that was saved and redeveloped into an artists’ collective in 2013 by community shareholders.

The building is now inhabited by “makers” of all disciplines – from steel forging to gin distilling – and is filled with affordable, restored and retrofitted workshops to nurture the small-scale manufacturing that lives on in the Sheffield community.

Portland Works is also one of the oldest examples of a working metal trades factory. Amazingly, the forge that was built in 1879, where stainless steel was originally produced, is still in daily use. It is an emblem of how old and new practices have come to characterize Sheffield’s skillful community today.

Reincarnating Steel

Like many of the northern English cities that were once dependent on traditional industry, Sheffield is transforming itself to embrace a heritage wrought out in steel while surging ahead with modern developments.

It is a city that once tirelessly worked its way to be a leader in steel, and its industrious and creative capabilities have lasted throughout the years – ultimately contributing to the rich cultural scene the city holds today.

Steel City Highlight: Pohang, Korea

Steel City Highlight: Košice, Slovakia

Steel City Highlight: Birmingham, USA

Steel City Highlight: Kaohsiung, Taiwan

Steel City Highlight: Pittsburgh, USA

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

This month’s theme, “Steel Wonders of the World,” will focus on stories about some of the greatest engineering and architectural structures of history.

The Great Ship

The Great Eastern was built on the dream of constructing a ship that could circumnavigate the world, and would be big enough to carry the 15,000 tons of coal necessary to do so. It was to be five time larger than any ship the world had seen, an engineering marvel. The engineer behind its design, Isambard Kingdom Brunel, is considered to be the most gifted engineer of the Victorian Age. He helped create the modern industrial world; from his revolutionary visions came the world’s first global transportation system and his railway designs made continental travel faster than ever possible. His bridges spanned distances never before seen.

Ship of Steel
The first ship made almost entirely of metal, the construction of the Great Eastern took years and over 8,600 tons of iron, four times more than any steel structure before it. Brunel engineered the all-iron double-skinned hull which was made from 30,000 steel plates, weighing six tons each. It was the first ship built with a double-skinned hull, and it would be decades before another ship employed the design that is standard today. Its steam engines were higher than four stories and produced the power of 8,000 horses. It combined a sail propulsion system with a single screw and paddle system.

Built to carry 4,000 passengers, it was the largest moving man-made structure of its time. It never saw the commercial success that Brunel envisioned, yet the Great Eastern revolutionized shipping engineering and design. It would be 50 years before the world saw another ship of its magnitude.
The gigantic ship of steel would be the final work of the great industrial engineer. Building the Great Eastern bankrupted Brunel and it was considered a failure during his life; however, it is now revered as one of the greatest feats in engineering.

Coming Up
Following our look into the history of steel, this month’s theme, “Steel Wonders of the World,” is inspired by the BBC documentary series, The Seven Wonders of the Industrial World.” You can find the full series, created by Deborah Cadbury, on YouTube.
The modern world we live in would not be possible without the influence of steel. As a global leader in steel production, POSCO is committed to leading innovations for the future. Stay tuned for the following stories.

• The Brooklyn Bridge: A historical look at the construction of the Brooklyn Bridge and other modern suspension bridges that it has inspired
• The Panama Canal: Building the Panama Canal took 25 years and the efforts of two nations. The Panama Canal connected the world by connecting two oceans
• The Hoover Dam: A true testament to the ingenuity of man, the Hoover Dam was built under budget and ahead of schedule
• Steel Innovations Driven by POSCO: Take a look at some of the most famous steel structures built with steel produced by POSCO
• Steel and Art: POSCO’s steel is used for art sculptors and the full scale construction of buildings. This is the story of the steel sculpture, “Steel Igloo,” created by POSCO architect, Chan Joong Kim.

Be sure you never miss any of the exciting steel stories from The Steel Wire by subscribing to our blog.

 Before the Revolution

Before the Industrial Revolution, most people lived in small, rural communities where their daily lives revolved around farming. Life for the average person was difficult, incomes were barely sufficient and malnourishment and disease were common. People lived from making their own food, clothing, furniture and tools.

Before the invention of machine tools, metal was worked manually using basic hand tools. It was tedious and expensive. Because of this, before the new technology in steel production was discovered, most tools were made of wood.

Urbanizing the World

The Industrial Revolution marked the transition to new manufacturing processes. New chemical manufacturing and iron production, water power, steam power, machine tools and the rise of the factory system all contributed to the urbanization of the world. The volume and variety of factory-produced goods raised the standard of living for many people, particularly for the middle and upper classes.

The availability of cheaper iron and steel was fundamental in the growth of several industries. The development of machine tools made precision iron working possible. Other changes included improved roadways, waterways and railways. Raw materials and finished products could be moved more quickly and cheaper than ever. Improved transportation also meant as people moved to new places, ideas and information spread. This was the beginning of globalization.

One of the defining impacts of the Industrial Revolution was the rise of cities. By 1850, for the first time in world history, more people Great Britain lived in cities than in rural areas. By 1920, the majority of Americans lived in cities. The new industrialized cities grew the economies of their nations.

The Industrial Revolution changed materials production, standards of living, labor conditions and population distribution. Job opportunities in growing factories resulted in a population shift from rural areas to the cities, creating the world’s first urban populations.

Changing Societies

The Industrial Revolution marks a major turning point in history; almost every aspect of daily life was influenced in some way. Average income and population growth began to experience unprecedented sustained growth. The standard of living for the general population began to increase consistently for the first time in history.

Prior to this era, most of the working population were land owners, tenants or laborers who worked on farms. With the growth of factories, workers began to move from working on farms to working in cities. The Industrial Revolution also created a middle class of professionals, lawyers, doctors, industrialists and businessmen, rather than a class nobles.

For the first time in history, there was a simultaneous increase in population and in per capita income. Life expectancy of children increased dramatically. A dramatic decline in the death rate cab be attributed to a decline in famines, warfare and illnesses.

Steel production was the major driving factor of the Industrial Revolution, which is one of the periods of greatest change in history. Steel helped drive industry, globalization and urbanization.

From Bronze to Iron
The adoption of iron and steel directly impacted changes in society, affecting agricultural procedures and artistic expression, and also coincided with the spread of written language. In historical archaeology, the earliest preserved manuscripts are from the Iron Age. This is due to the introduction of alphabetic characters, which allowed literature to flourish and for societies to record historic texts.
The beginning of the Iron Age differs from region to region. It is characterized by the use of iron in tools, weapons, personal ornaments, pottery and design. The differences from the preceding age of bronze were due to more advanced ways of processing iron. Because iron is softer than bronze, it could be forged, making design move from rectilinear patterns to curvilinear, flowing designs.

Iron smelting is much more difficult than tin and copper smelting. These metals and their alloys can be cold-worked, but smelted iron requires hot-working and can be melted only in specially designed furnaces. Iron fragments found in present day Turkey (c. 1800 BC) show the use of carbon steel. These iron fragments are the earliest known evidence of steel manufacturing.
It is believed that a shortage of tin forced metalworkers to seek an alternative to bronze. Many bronze objects were recycled into weapons during this time. The widespread use of the more readily available iron ore led to improved efficiency of steel-making technology. By the time tin became available again, iron was cheaper, stronger and lighter, and forged iron replaced bronze tools permanently.
During the Iron Age, the best tools and weapons were made from steel, particularly carbon alloys. Steel weapons and tools were nearly the same weight as those of bronze, but much stronger.

Iron Age: Daily Life
Before the Industrial Revolution, which would take place centuries later, the majority of people lived an agrarian lifestyle. Most people were farmers, and their lives revolved around the farming seasons. Societies consisted of villages where communities of families worked the land and made necessities for living by hand. All essentials were made or grown locally.
The production of iron tools helped make the farming process easier and more efficient. Farmers could plow tougher soil, making it possible to harvest new crops and freeing time for more leisure. New varieties of crops and livestock were introduced at different times over the span of the Iron Age.
More time also meant that people could make extra supplies to sell or exchange. Some farming families spent part of their time making salt, quern stones or iron. Most settlements have evidence of making clothes, woodworking and even blacksmithing.
Iron has been enhancing the quality of life for centuries. As more advanced technologies for processing iron were discovered, the world would experience the most rapid period of growth.

Just as civilizations experienced rapid advancement during and after the Iron Age, the fourth industrial revolution of today is changing the dynamics of markets and industries. Find out more about how companies should adapt and capitalize on the change, including steel companies.

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