Technology isn’t just securing the safety. Also boosts athlete’s motivation

Pride of the Korean-Made

The passion of the athletes seen at The PyeongChang 2018 Paralympic Winter Games is unforgettable. It is to this end that POSCO has devoted itself to supporting athletes with disabilities.

When it comes to sports, even small improvements in technology or changes to the gear may bring about huge differences. Having supported the national para ice hockey team since 2016, POSCO developed lightweight sledges with improved tolerance shock absorption for the Korean para ice hockey team so that the athletes could focus more on the game. This made POSCO the first company in Korea to manufacture athletic gear for national Paralympic teams. Equipped with motivation and new gear, the Korean para ice hockey team achieved an amazing Bronze medal in The PyeongChang 2018 Paralympic Winter Games.

SEE ALSO: Parallel: Shining a Spotlight on the Korean National Para Ice Hockey Team

With memories of The PyeongChang 2018 Paralympic Winter Games still fresh, South Korea recently observed the National Day of Persons with Disabilities on April 20. In recognition of this day, POSCO interviewed Jin-Owan Jung, head officer at the Korea Paralympic Committee Icheon Training Center and manager of the Korean Paralympic team the man who led the Korean team at The PyeongChang 2018 Paralympic Winter Games and one who both understands and represents the interests of people with disabilities in Korea.

“It’s Not Just About Overcoming Your Disability But Accepting It.- Jin Owan, Jung”

He emphasized the recognition and acceptance rather than struggling

Accept who you really are

Jin-Owan Jung was 22 years old when a car accident left him paralyzed from the waist down in 1987. Undeterred by the accident, Jung set his eyes on becoming an athlete for the Paralympics when he saw the Seoul Paralympic Games in 1998. He won 2 medals – a gold and a bronze – in Shooting in the 2000 Sydney Paralympics Games. After retiring as an athlete, his passion for sports drove him to take on a new role in administration. The experiences gained as a Para sport athlete and also by interacting with others with disabilities, gave him a perception that acceptance of one’s disability is more important than struggling to overcome it.

He agrees that the situation is getting better but still needs more support such as financial aspects

You are not alone

The PyeongChang 2018 Paralympic Winter Games was a huge success in that the athletes’ passion inspired positive change in the society’s views toward people with disabilities. Jung noted that the infrastructure for people with disabilities in The PyeongChang 2018 Paralympic Winter Games was much improved in comparison to past games. However, he believes there is still room for improvement. Additional and sustainable social support is necessary to ensure those with disabilities can enjoy living conditions equal to those of other citizens and have an equal share in the development of their societies.

POSCO supports not only their technology but also financial aid

How to support?

Jung explains, “Financial support is not everything but it is important in certain circumstances.” POSCO has been a proud sponsor of athletes with disabilities and has provided roughly $2.6 million in support of Para sport since 2011. This year, POSCO donated $370,000 to the Korean Paralympic team in honor of their effort and passion.

‘Harmony’ is the element that POSCO will promise for better society

Jung believes that sports might be the key to resolving discrimination against people with disabilities. However, this can only be accomplished with active contribution from supporters. POSCO will continue to support Jin-Owan Jung’s dream of achieving social harmony and creating a society where having a disability does not impede one’s quality of life.

The first CEO Succession held successfully on April 23rd discussing the future and rightful candidates

Discussion for future POSCO and rightful candidates

The five outside directors, including Joo-hyeon Kim, chairman of the Board of Directors, Byeong-won Park, chairman of the director recommendation committee and the steering committee, Moon-gi Jeong, chairman of the auditing committee, Myeong-woo Lee, chairman of the evaluation and compensation committee, and Shin-bae Kim, chairman of the financial and inside trading committee and Ohjoon Kwon, CEO of the POSCO attended at the Council meeting.

CEO Ohjoon Kwon, not to participate in the Succession Council for transparency.

Based on regulation, the current CEO is considered as an ex-officio member of the CEO Succession Council. However, as soon as the Council meeting started, CEO Kwon has announced that he would not participate in the Council meeting for ensuring fairness and objectivity for the procedure of candidate identification.

Various candidates will be considered from in and outside

According to the outside directors, they defined the competent CEO candidates as the one who can show ‘Innovative leadership that can lead the next 100 years of POSCO Group’. More specifically, this means that they would carefully recommend the candidates who have global management aptitude to respond to the changes in the global economy, the innovative capabilities to continuously implement the development and changes of the group, and a high level of understanding of and competency in the steel, infrastructure and new- growth industries.

As for the election method for CEO candidates, insiders who have been fostered through the internal core talent development system will be recommended. However, shareholders such as the National Pension Service and institutional investors, through the labor-management council and Association of POSCO’s former executives will provide recommendation for the outsiders. Also, POSCO opens for global CEO candidates recommended by external search firms.

Existing airports are facing a growing capacity crunch in the midst of a growing global economy. (Source: Skift)

The Asia Pacific region’s Available Seat Kilometers (ASK) has increased 7.9 percent YoY, as China leads the way with numerous airport construction projects. Current and anticipated expenditure on airport infrastructure is USD 391 billion for the entire region.  European airports experienced a 30 percent increase in passenger volume from 2012 to 2017. Currently, there are 450 airports facing a capacity crunch in Europe, and the region is currently expecting to spend USD 123 billion on airport infrastructure. North America saw a 4.9 percent YoY growth in its ASK and is currently and expected to spend about USD 123 billion in upgrading its existing airport infrastructure.

There’s no set formula to deal with the growing capacity crunch, and airports in different regions are finding their own solutions from high tech to high-quality materials.

SEE ALSO: Clear Landing into 2018: What’s Ahead for the Aviation Industry

Speeding up passenger flow

Developing countries rich in land and capital, such as China, will deal with the growing number of passengers by building more airports. In other places such as North America, the focus will be on upgrading existing infrastructure and improving passenger flow with the help of technology.

One example of software that is being applied to speed up the flyer’s journey and minimize errors is biometric technology. In Changi Airport Terminal 4, a system called Fast and Seamless Travel (FAST) with biometric technology and self-service features is already in place and will begin operations at the end of October.

Changi Airport’s new terminal will have numerous self-service stops with biometric technology for identification. (Source: Today Online)

Passengers will be able to check-in, check baggage and board the plane, all through a series of self-service stops equipped with fingerprint scanners and facial recognition for identification instead of passports and boarding passes. Sydney Airport will also have a similar system running by the second half of 2018, and many major airports are looking to expand biometric technology applications to other areas such as flight information display systems and on-flight payments.

This is great news for crowded airports. Besides bad weather, the biggest reason for delayed flights is delayed passenger information. As of now, airlines and airports do not share data regarding passengers. Even though airports are aware of passenger check-ins hours before departure, airlines are only notified at boarding gates. Thus, airlines are rushed last minute to verify passenger and flight crew information, causing delays. Reducing the redundant check-in process alone will speed up the flow of passengers through airports.

AI and robotics to lead airport services

In line with the trend toward self-service and passenger interactions with technology, airports and airlines are implementing AI and robotics to improve the passenger flight experience and make it more personalized.

Last year, Incheon International Airport (ICN) in Korea added LG’s robots to its service team – the Airport Guide Robot and the Airport Cleaning Robot. The Guide Robot roams the terminals, ready to help out a passenger in need with airport and flight information in English, Korean, Chinese and Japanese. The bot even personally escorts travelers to the right terminal or boarding gate when passengers scan their boarding passes. The Cleaning Robot cleans nonstop, and can even detect dirty areas, analyze cleaning patterns and calculate the most efficient cleaning routes.   

The Airport Guide Robot and the Airport Cleaning Robot roam the terminals of ICN as part of the airport’s customer service and cleaning crew. (Source: Android Central)

Haneda Airport in Japan is also testing 7 different types of robots equipped with AI software to cover security, translation and baggage transportation. Investment in robotics is crucial for a country like Japan where there is a severe labor shortage due to low birth rates, and the airport is planning to have their bots up and running by 2020, in time for the Olympic Games in Tokyo.

Passengers will also be greeted by a robot named Josie Pepper at Munich Airport’s Terminal 2. Josie Pepper functions on IBM Watson’s IoT and AI technologies. Her high-performance processor with a WLAN internet access connects to a cloud service that is also linked to airport data to deliver information to passengers in real-time. Moreover, machine learning allows Josie Petter to collect and analyze data and improve her responses over time instead of repeating inputted text.  

The bigger the better

The use of technology will greatly improve the passenger flow through airports and increase passenger capacity. However, the new software systems will work best when accompanied by upgraded airport infrastructure. That’s why airports all over the world are undergoing expansion projects including Heathrow Airport (USD 17.3 billion), Sharjah International Airport (USD 400 million) and Auckland Airport (USD 160-180 million).

ICN recently finished and opened its new Passenger Terminal 2, expanding the airport’s capacity to 72 million passengers and 5.8Mt of cargo every year. The terminal was built using 380 tons of POSCO’s 446M stainless steel that contains high amounts of chromium (26%) and molybdenum (2%) for maximum corrosion resistance against the airport’s coastal climate. Moreover, an innovative Bead Blast process was used to process the stainless steel to create a rough texture to decrease sunlight reflectivity for aircraft pilots during take-offs and landings.

ICN’s new passenger terminal is outfitted with high-quality stainless steel. (Source: Airport Technology)

As with ICN, ongoing and future airport expansion projects are projected to consume vast amounts of high-quality steel that is superior in strength, corrosion-resistant and boosts the safety of passengers and flight crew. The renovated infrastructure will further be enhanced by new software upgrades, and future airports will be vastly more efficient and passenger-friendly.

Cover photo courtesy of Dubai Airports.

One in 9 people all over the world do not have access to drinking water. (Source: World Finance)

However, it seems the world just can’t get enough of water. Global water demand is projected to increase 55 percent by 2050. Most of the demand will be driven by the agriculture industry, which currently makes up 70 percent of freshwater consumption, but is projected to grow another 69 percent to meet the food demands of the growing population. New-growth industries will put additional pressure on freshwater supplies. For example, water used to cool power stations is projected to increase by more than 20 percent by 2055 and water demand from the manufacturing industry in developing nations will grow by 400 percent by 2055. Unfortunately, 97.5 percent of earth’s surface water is inadequate for human use.

The growing demand is putting heavy pressure on current water supplies that appear to be shrinking due to global warming and climate change. As a result, there have been extensive efforts by individuals and households to conserve and recycle water. However, in major cities around the world, water is wasted before it even reaches people’s taps.

Water leaking through the cracks

In the U.S., about 2.1 trillion gallons of water slip through the cracks, literally, each year, or about 6 billion gallons of water per day. The ancient water infrastructure throughout the country is full of leaking pipes, cracked mains and broken meters.

For example, the largest water filtration plant in the world, Jardine Water Filtration Plant, is located in the city of Chicago and pumps out purified water to about 5 million residents via thousands of miles of pipes. However, about 22 billion gallons of water leak through old pipes and broken water mains in the city every year. In Philadelphia, the Water Department pumps out 250 million gallons of purified water daily to nearby residents, but more than 60 million gallons are lost through the pipes every day.

Billions of gallons of drinking water are wasted through cracks and leaks in water pipes. (Source: UCLA)

In Canada, home to some of the most abundant supplies of freshwater, there are cities with 35 to 45 percent water loss. Ontario, for example, has outdated and leaky pipes responsible for the loss of about  CAD 700 million per year in wasted drinking water.

In the UK, about 872 million gallons, or 20 percent the nation’s treated water supply, leaks through old pipes before it reaches residents. This is 62 million gallons more per day than water loss rates from a decade ago, showing the severe consequences aging pipes can have.  

Faulty water pipes

The biggest problem with water systems around the world is simply their age. They were built ages ago, often with insufficient materials and outdated technology, and now, they’re too expensive and extensive to repair or replace.

However, old pipes can pose a number of problems. Besides the gallons of wasted purified water, an outdated water system can pose major health risks. In the U.S., 1 in 4 people drinks unsanitary water due to insufficient water infrastructure. It has already been proven that contaminants can enter the water system through leaks that are most often caused by corrosion and material defect.

Cast iron pipes are highly susceptible to corrosion and structural damage. (Source: Micro Power Grids)

Water pipes installed decades ago are traditionally made of cast iron and laid on wooden blocks or rocks. Such pipes are highly corrosive and most susceptible to damage. Also, a well-functioning pipe keeps contaminated water out with pressure from mains that forces water out of minor cracks, but not in. Over time, damage to a certain section of a pipe can cause this pressure to drop, and groundwater often finds its way in through cracks.

Making it right with steel

The ideal solution for outdated, faulty water pipes would be to replace them with new ones equipped with the latest damage detection and repair technologies. However, such projects are not only expensive, but a city’s water system is often politically, regionally and physically intertwined with other entities, making it difficult to take on such a mammoth task.

Thus, cities opt for isolated repairs instead, either placing a stainless steel clamp over the damaged area or inserting a smaller stainless steel pipe inside the existing, cracked pipe. Stainless steel is the most common material for repairing and replacing outdated cast iron, concrete and lead pipes due to its excellent strength and resistance to corrosion. Higher grades of stainless steel, such as POSCO’s PossSD, can also resist high levels of pressure and are naturally resistant to microbes. Stainless steel can also be manufactured to withstand extreme temperatures.

Major cities such as Tokyo, Seoul and Taipei are undergoing massive projects to replace the majority of their water pipes with stainless steel to ensure safe and abundant drinking water for residents. For other cities, repairing leaky pipes with stainless steel will save millions of dollars currently leaking through the pipes and prevent illnesses associated with contaminated water. As the global demand for water continues to grow and fresh water supplies continue to shrink, conservation is becoming more important than ever, ensuring that stainless steel will play a vital role in water pipe repairs and replacements for years to come in efforts to correct and maintain the system that serves the basis of all human activities.

Cover photo courtesy of The Spruce.

Cities like Hanoi are expanding at an increasing rate. (Source: Channel News Asia)

Urbanization is also speeding up growth. By 2030, more than 10 million people will reside in Ho Chi Minh City. Not only demographically, Vietnamese urban areas are getting bigger physically, with a spatial expansion rate of 2.8 percent per year, which is faster than any other urban area in the Southeast Asian region. The growth is stimulating demand for new homes, roads, infrastructure as well as labor.

As a result, the country is already the biggest steel consumer in the region, driven by a strong construction industry and abundant FDI.

Foreign Direct Investment

During the record-breaking year of 2017, Vietnam saw registered FDI increase 44 percent YOY, and exports rise 23 percent. The majority of investment came from nearby countries such as Korea, Singapore, Japan and China, where the cost of labor is much higher than in Vietnam. Plus, of the country’s 92 million people, 60 percent are of working age, and have demonstrated high output levels. Thus, loads of manufacturing jobs are being offshored to Vietnam.

For example, Korea’s Samsung Display invested USD 2.5 billion in Vietnam last year, bringing total investments to USD 6.5 billion for the production of their display products. Polytex Far Eastern, a Taiwanese company, also invested USD 490 million for their yarn factory in Vietnam. With the continued flow of FDI, the country’s economy is reaping the benefits in terms of financial gain as well as developments in infrastructure.

Foreign Investment has created many jobs for Vietnam’s workforce, such as the workers above in a Samsung Factory. (Source: VN Media)

Two metro projects are under way in Ho Chi Minh City and Hanoi, both funded by foreign companies. Ho Chi Minh City’s Ben Thanh-Suoi Tien line will run through the city at a length of 19.7km, and is planned for completion in 2020. Most of the funding comes from Japan International Cooperation Agency (Jica), Japan’s Sumitomo Corporation and Shimizu-Maeda.

In Hanoi, the 13km Cat Linh-Ha Dong line is mainly supported by China Railways Sixth Group along with a consortium of other Chinese companies, and is scheduled to open for operation in 2018. Such major infrastructural upgrades will further boost the cities’ efficiency and create a better living and business environment.

A Strong Construction Industry

With FDI stimulating the economy and creating jobs, the Vietnamese are enjoying higher living standards and searching for homes in or near major cities. The growth of the middle class and urbanization have led to a booming construction industry.

According to POSCO Research Institute, Vietnam’s construction industry made up 33.3 percent of total GDP, with an 8 percent growth in 2017 alone. Moreover, the industry is projected to grow at an annual rate of 7 percent for the next 10 years. As a result, Vietnam’s construction industry is driving the nation’s steel demand. From 2011 to 2016, Vietnam’s steel demand grew by an average annual rate of 18.1 percent, the highest of Southeast Asian countries with the Philippines in second place at 13.6 percent and Thailand following behind at 5.7 percent.

Vietnam has seen the most rapid growth in steel demand in the region. (Source: SEAISI 2017)

With more and more homes and public infrastructure being built, Vietnam’s construction spending has grown at a CAGR of 8.5 percent and construction steel accounts for more than 93 percent of steel demand in Vietnam. Of those figures, structural steel demand is expected to make up 80 percent of the country’s entire steel demand, reaching 24 million tons by 2020. In comparison, the construction industry is accountable for 65.3 percent of total steel demand in Indonesia and 59.7 percent in Thailand, two of the biggest economies in the region.

Vietnam has one of the fastest-growing construction industries in the world. (Source: SEAISI 2017)

Currently, Vietnam’s domestic steel production capacity only meets 40 percent of its demand, meaning companies must secure stable, high-quality supplies of steel to match its growing demand.

SEE ALSO: Top 5 Steel Consuming Regions in 2018 and Beyond

POSCO’s Solution Marketing

For steelmakers like POSCO, Vietnam holds numerous possibilities for new partnerships and cooperation with construction companies. POSCO has been working closely with its partners in Vietnam for years, supplying premium products as well as supporting partners with technical and marketing solutions. POSCO also chose to open its first overseas structural steel solution center in Vietnam early this year at  POSCO SS VINA.

SEE ALSO: POSCO Opens its First Overseas Structural Steel Solutions Center in Vietnam

POSCO CEO Ohjoon Kwon (center) during a visit to POSCO SS VINA last year. (Source: POSCO SS VINA)

The center is composed of 3 main departments: Solution Planning, Solution Development and Technical Services. Due to the influx in demand for structural steel, the solution center will develop customized marketing strategies fit for the local market, and 25 experienced construction experts will provide support for projects using POSCO’s steel.

As Vietnam eyes another year of growth and development, POSCO SS VINA also looks forward to a busy year providing material and technical solutions for domestic construction projects that will play a vital role in Vietnam’s economic and social well-being.  

Cover photo courtesy of Smithsonian.

More drivers are making the switch from gas to electricity to fuel their cars. (Source: The Korea Bizwire)

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Why don’t more people drive EVs?

Electric vehicles (EVs) have a variety of benefits for drivers, the most obvious being cheaper electricity prices compared to gas. Not only that, EVs only have about a third of the parts of ICE vehicles, which results in maintenance-cost reductions by about 60 percent. There are also government subsidies that support EV manufacturers and consumers in numerous countries, and environmental regulations only look to strengthen. Despite all this, drivers have been slow to make the switch to EVs, and there are 3 critical reasons why.

1. Range

Today, EVs can travel about 200 to 400 miles on a single charge, and while this may be sufficient for most urban drivers, it’s still not enough coverage to relieve drivers of range anxiety. Low-capacity batteries are not the only problem – the weight of the car and the efficiency of the motor and converter also affect range. Put simply, even if a battery could hold more energy, it won’t result in increased range if the car is too heavy or the motor is inefficient and uses up too much energy. Automakers have to come up with comprehensive solutions to improve the battery capacity and motor efficiency as well as lightweight their vehicles.

Drivers are often wary of their EVs running out of juice where there are no charging stations. (Source: Sandman YouTube Channel)

2. Charging Time

EVs currently take up to several hours to fully charge, depending on the battery. Although there have been advancements in charging systems that allow for shorter charging times, the average charging duration cannot compete with the 3 to 5 minutes people spend at gas stations.

3. Charging Stations

Despite the technological leaps made in the development of EVs, charging infrastructure has not maintained the same pace. Gas stations outnumber charging stations in every country, and it will take time to figure out a model to commercialize charging stations and make the business more profitable.

Charging stations have not yet been commercialized as gas stations have. (Source: Coinfeeds)

Why EVs are still driving toward a bright future

Although there are still challenges to overcome, one of the greatest drivers of widespread EV adoption is national policy. A growing number of countries have declared they will limit or even ban ICE cars altogether by 2020. Policies are already in place to support a more environmentally sustainable auto industry, and companies are working hard to navigate and capitalize on the changing market environment.

This will bring about a wealth of new opportunities for related industries. That’s why automotive, materials, electronics and chemical companies around the world are investing heavily in technology to preempt this market, and first movers will gain a tremendous advantage.

POSCO is one of the companies looking to lead the global EV materials market and has been investing in and developing innovative solutions for EV manufacturers. POSCO has designed an ultra-lightweight yet strong chassis and developed the necessary parts to bring it to life. POSCO is also currently working with auto manufacturers, giving them access to POSCO’s EV chassis design expertise as well as its newly-developed materials.

POSCO has designed an ideal chassis for electric vehicles. (Source: News Tomato)

In addition, POSCO works closely with each of its affiliates including POSCO Daewoo, ICT, ESM and ComTech that are highly specialized in their respective fields. In cooperation with its affiliates, customers and academia, POSCO is in the process of developing innovative technologies for batteries, electric motors and charging infrastructure. As such, the EV sector has become a core business area for POSCO.  

Everything from the EV chassis and battery to the motor and charging infrastructure is codependent. Therefore, in order to develop an advanced EV that meets the needs of consumers, an integrated approach is vital. POSCO is in prime position to work with all of its affiliates under One POSCO and gear toward a future of cars running on electric motors.

Cover photo courtesy of The Wellingtonian.

In recent years, Vietnam has undergone rapid urbanization with subsequent advancements in housing, energy and infrastructure. As such, demand for structural steel is expected to reach 24 million tons by 2020. The figures represent 80 percent of Vietnam’s entire steel demand, making Vietnam a booming market for steel consumption in Southeast Asia.

As the Vietnamese construction industry is projected to see an annual growth rate of 7 percent for the next 10 years, POSCO plans to pursue preemptive solution marketing activities with local affiliates such as POSCO SS VINA and POSCO-VST.

POSCO SS VINA will supply Vietnam’s growing structural steel demand.

They also look to cooperate with local organizations to maximize benefits for their clients, by providing support for a wide range of technologies related to molding, binding, improved performance and structuralization.

Additionally, POSCO intends to promote packaged marketing services for large-scale projects to offer various products such as R.H. (ROLLED H-BEAM), BH (Built up H-Beam) and steel bars in one batch.

POSCO is organizing 3 separate departments – the Solution Planning Department, Solution Development Department and Technical Services Department – to successfully create, develop and implement a local, customized marketing strategy. A total of 25 experienced construction experts will serve as consultants.

In January, POSCO also established a “Solutions Marketing Center” under its base corporation in Vietnam and China to provide support for its increased production and sales worldwide.

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

Three Gorges Dam

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

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

Beijing Capital International Airport

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

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

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

Jiaozhou Bay Bridge

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

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

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

Jiuquan Wind Power Base

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

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

New Century Global Center

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

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

Port of Shanghai

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

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

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

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

Cover photo courtesy of Morgan Stanley.

Since 2014, POSCO successfully completed 150 cases of restructuring.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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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.

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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.