Steel Korea 2016 provides the steel industry and relevant academic and research institutes with the setting to evaluate the current situation of the Korean steel industry. Steel in Korea is having to face a rapidly changing global environment, and must explore ways to enable the continuous growth of the industry by making new breakthroughs.

It was the second annual meeting of the event, attended by 300 people, including Chairman Ohjoon Kwon, Vice-Chairman of Hyundai Steel Yoocheol Woo, Chairman of the Korean Institute of Metals and Materials Jongsoo Lee, and Chairman of the Korea Steel Scrap Industry Association Youngdong Park.

In his opening speech, Chairman Ohjoon Kwon remarked, “Recently, our steel industry has been undergoing some challenging times amid the trade protectionism occurring around the world, and also due to domestic demand beginning to wane. In order to overcome the current crisis and move forward, the industry, academia, research institutes, and the government should come together to improve responsiveness and drive change.”

Kwon said that the industry should make bold investments into new technologies and products in order to supply better quality products at lower prices, and companies should secure a solid management foundation through strong corporate restructuring that would remain unaffected in any occasion.

On August 24, the Korea Iron & Steel Association held Steel Korea 2016 at the POSCO Center to seek a breakthrough for the steel industry. Chairman Ohjoon Kwon emphasized that, in order to overcome the crisis in the steel industry, the industry, academia, research institutes and the government should come together to improve responsiveness.

He also added, “The private and public sectors should work together to survive in the global steel trade war. We have to improve our responsiveness to changes in trade policies by closely monitoring the trade regulations of each country and strengthening the communication channels with local steel industry and trade authorities.”

The participants agreed that strong domestic demand is instrumental to the continuous growth of the steel industry, and pledged to build up a strong partnership with relevant industries, such as automotive and construction, as well as to block imports and distribution of unfairly traded products.

The event also included a wide range of presentations concerning the future of steel and construction, including the flow of demand for structural steel in each industry; current status of product development; current status and future prospects of steel using technologies in different industries, such as automotive, shipbuilding, home appliances and stainless steel; seismic design in steel structures; trends of Iran’s construction market; and future steel housing.

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CEO Kwon talked with several employees who have experience working in the Middle East at a lunch meeting on June 28.

The lunch meeting was held at the POSCO Center, and those attending shared their thoughts about the Middle East region and its growth potential, along with their unique experiences.

POSCO has been expanding its business partnerships around the Middle East, including with Saudi Arabia and Iran, since last year. The lunch meeting was organized to reflect that increasing interest in the region, and to learn more from employees who have studied or worked there.

The participating employees had a range of experiences in the Middle East, such as working at the POSCO Dubai office, studying as a graduate exchange student in Iran and working for a cement company in Bahrain.

CEO Kwon said, “The success of an overseas business ultimately depends on people. You have to understand the local culture first if you want to successfully manage a business in the Middle East. I hope you continue to play an active role in our Middle East-based projects and teams, sharing your valuable experiences.”

In addition, on June 22 CEO Kwon met with the 16th and 17th members of the board to receive case studies about employee workload and efficiency, as well as how to build employee confidence and morale.

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On February 29, POSCO signed a memorandum of agreement (MOA) with Iranian steelmaker PKP to construct an integrated steel mill. (Front row, from left) POSCO Executive Vice President Lee Hoo Geun, PKP Chairman Abdolreza Zoroufchian, and POSCO E&C Executive Vice President Kim Dong Chul. (Back row, from left) Minister of Trade, Industry and Energy Joo Hyunghwan, (fourth) Iranian Minister of Energy Hamid Chitchian.

Under the agreement, POSCO will shoulder 8 percent of the total construction cost of the steel mill—approximately $1.6 billion—and transfer its POSCO innovative steelmaking technology (POIST) to its Iranian partner. PKP will pay for the remaining 92 percent.

POIST is a combination of its own innovative FINEX and compact endless cast and rolling mill (CEM) technologies. FINEX is an environmentally-friendly technology for producing molten metal using powdered iron ore and bituminous coal directly as fuel without needing to undergo pre-treatment. CEM is a technology that reduces energy consumption by integrating the molten metal casting and steel rolling processes into one.

At the MOA signing ceremony, with over 100 participants, including the Minister of Trade, Industry and Energy Joo Hyunghwan, Iranian Minister of Energy Hamid Chitchian and POSCO Group officials, POSCO and PKP agreed to carry out the project in two phases. The first will involve the construction of the integrated steel mill; the second will consist of the establishment of an additional cold rolling and plating line with an annual capacity of 600,000 tons, to help accelerate production of high-value products.

Meanwhile, POSCO Energy and POSCO E&C also signed a memorandum of understanding (MOU) with the Korea Electric Power Corporation (KEPCO) and PKP to build an off-gas power plant and undertake a desalination project. POSCO Energy and KEPCO will be responsible for the operations and maintenance of the power plant and desalination facility, while POSCO E&C will oversee construction of the plant and facility. The power plant and desalination facility will later provide a stable supply of power and water for steel mills and the Chabahar Free TradeㅡIndustrial Zone (CFZ).

The construction site for the integrated steel mill is located in CFZ near the coast of Oman, south of Iran. CFZ is conveniently located due its abundance of raw materials and tax privileges. Before breaking ground in March 2017, POSCO will finalize the specifications for the facilities, and perform technical reviews and due diligence.
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