There is a shocking amount of garbage and waste in the world’s oceans, and it has gone unchecked for far too long. Ocean currents have drawn these floating garbage patches together into distinct regions, and, according to the National Geographic, one in the Pacific covers an area larger than Mexico.

The world’s largest garbage dump is found in the world’s oceans. (Source: Stem Jobs)

Individuals, governments, and companies are heeding the call of oceanographers and other scientists and realizing more and more that a healthy ocean is vital to humanity’s survival. Many organizations are working to protect this natural resource by implementing sustainable, responsible practices to help clean up the oceans.

The State of the Ocean Today

Plastic is a major problem for the ocean. It breaks down into microparticles, which are nearly impossible to clean up. Places like Henderson Island, in the South Pacific region, are covered in tens of millions of pieces of trash.

Animals like seabirds consume the plastic at alarming rates: it is found in 90 percent of seabirds, according to Australia’s Commonwealth Scientific and Industrial Research Organization. The study also says that plastic production is rapidly increasing, and so are the rates of ingestion by seabirds.

A bird eating plastic on the beach. (Source: Science Mag)

Plastic is not the only problem. Oil, fertilizers, sewage disposal, and chemical usage on land is affecting the oceans and killing marine ecosystems. The US National Research Council says 36 percent of the oil in the oceans come from city and industry waste and runoff.

Fertilizers are entering the ocean in much the same way. Even though there are many global restrictions on sewage and chemical dumping, it still happens. The oceans are in rough shape, and these issues are only going to get worse if people, companies, organizations and governments do not take action.

However, there are factors to consider before plunging in.

Cleaning Up Done Right

If ocean cleanup is not done properly, it can negatively impact marine ecosystems. The Bureau of Safety and Environmental Enforcement’s (BSEE) Rigs to Reef program found that fish and marine life were using oil and gas platforms as habitat, and when these rigs were decommissioned and removed, it harmed and disrupted the ecosystem.

Rigs to Reefs helped to transform oil and gas platforms so that they could actually offer a benefit to marine ecosystems. It now encourages the use of obsolete platforms as artificial reef material – as long as they meet strict requirements. With BSEE’s program, various marine species can adapt to and enjoy the artificial reefs as shelters and breeding grounds.

An artificial reef made of old industrial infrastructure. (Source: Rigs to Reef)

Other companies and groups are also taking action. For example, The Ocean Cleanup is a group focused on using the ocean’s natural currents for cleanup, and financing the project through philanthropic, commercial, and governmental donations and sponsorships.

POSCO’s Triton Project

POSCO is another company committed to sustainable, responsible practices when it comes to the environment, including the oceans. One of their major innovations, the Triton project has a direct, positive impact on the marine ecosystem of Korea’s South Sea and East Sea.

In conjunction with the Research Institute of Science and Technology (RIST) and the Korean government, POSCO has installed 510 artificial fish reefs made of “Triton” steel slag, made of  by-products of the iron and steelmaking processes. Triton is eco-friendly and low in carbon, and adds additional value to the steel manufacturing process by using up its wastes.

POSCO uses by-products from steel production to make Triton. (Source: Diproinduca)

Even better, Triton is naturally made with high percentages of iron and calcium, which work to create the ideal conditions for seaweed and algae spore growth, and purifies contaminated sediment. These reefs can also help reef populations migrate to cooler waters.

Triton reefs create a very healthy environment for marine life, and have helped to restore sea forests wherever they are installed. The sea plants that are thriving with Triton are decreasing carbon dioxide and creating a healthier ocean. Aside from the environment, the economies of surrounding countries are reaping the benefits. The commercial fishing industry is one of the first industries to benefit from a more robust local fish population.

An example of an artificial reef used to support plant growth

POSCO intends to continue building on the success of Triton, forging cooperative relationships to construct fishery resources. The next coral reef forest restoration is planned for Indonesia, and POSCO will continue to protect marine life globally.

Cleaning up the oceans is one of the greatest global environmental responsibilities of humanity. POSCO is one company leading the efforts to restore the environment through transformative technologies that take what was once considered waste and using it to create spaces that nurture life.

Cover photo courtesy of Rigs to Reef.

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One of our most exciting new products is PossSD – which stands for Super Ductile Duplex, a kind of duplex stainless steel. Duplex steel combines two types of stainless steel – austenitic and ferritic – to maximize the strengths and minimize the weakness of each.

The idea has been around since the 1920s, but only recently has technology and knowhow reached the point to make this a practical commercial product. And now, POSCO’s PossSD is one of the most exciting types of duplex steel to hit the market.

Combining Two Steels to Create an Innovative Alternative

Austenitic and ferritic steels are both considered fairly easy to make and fabricate, but both also possess certain drawbacks. Austenitic steels make up about 70 percent of all stainless steel production. These are low-strength steels that have low resistance to stress corrosion cracking, plus their high nickel content can make them more expensive.

Ferritic steel, on the other hand, have stronger engineering properties, but less resistance to corrosion. They use less nickel than austenitic steel, so tend to be cheaper.

By combining those two types of steel together, however, duplex steel is tougher and more ductile than ferritic grades, and are about twice as strong as both types of steel. It is also cheaper, while possessing stronger corrosion resistance.

Taking Duplex Steel to a Higher Level

PossSD takes those advantages to the next level. It is a high-alloy steel that features high corrosion resistance in severe marine, chloride and acid environments. It also has very limited nickel content, so is cost competitive. And the strip-casting process lets POSCO make PossSD with a higher nitrogen content.

Higher chromium and nitrogen make PossSD strongly anti-corrosive, and its strength gives PossSD anti-dent properties. But at the same time, enhanced ductility and elongation make PossSD highly formable. It also has excellent anti-fatigue properties.

Because PossSD is ferritic and austenitic, it is also magnetic, and therefore is induction heatable and good for cookware.

The strength of PossSD allows products that use it to be thinner and safer. And its high corrosion and wear resistance mean it is very useful for hoppers and tanks. It is an excellent floor material for refrigerated containers, with higher wear resistance and lighter weight.

High-strength enhances its safety factors, making it a good choice for safety items like fire doors and emergency ladders.

PossSD is also a hygienic steel, so it is also appropriate for water distribution and piping. And its strength means water ring thickness can be reduced 20 percent.

Finally, PossSD is versatile, and with proper treatment it can be employed for a wide array of other uses, like curtain walls, the exterior parts of electric battery chargers and artworks.

Stronger, Lighter, Cheaper

The many advantages of PossSD led to this POSCO World Premium product winning a World Steel Association Steelie Award in 2015 for being the Innovation of the Year.

In short, POSCO’s PossSD is an excellent example of what POSCO’s World Premium steel can be. Stronger, lighter, cheaper than regular steel options, PossSD is a major step forward for stainless steel.

To learn more about PossSD, be sure to check out this video.

PossSD, POSCO’s ‘Super’ Stainless Steel, to be Used in Development of Residential Escape Ladders

POSCO’s UL700 Steel Pipe Is a Big Boost for Scaffolding

PosCoZy Floor Plates Creates Quieter Apartments

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In fact, the ocean is the heart of our planet. It regulates the climate, feeds millions of people, produces the oxygen that we breathe and is home to an incredible array of wildlife.

To ensure the health and safety of our communities and future generations, it’s imperative that we take the responsibility to care for the ocean in the same way that it cares for us.

Steel, a material known for its ability to be reused and recycled almost infinitely, creates less waste during and after production, making it environmentally-friendly. In addition, steel and its byproducts are being used to recreate marine habitats in areas that have been polluted or destroyed.

In celebration of the United Nations’ World Oceans Day, which is held this year under the theme “Healthy Oceans, Healthy Planet,” POSCO highlights the role of steel in sustainable development and use of the oceans, and how we as individuals can contribute our talents to make oceans more sustainable.

Getting Out the Waste Stream

The term “waste stream” describes the complete life cycle of the garbage we produce—from putting out the trash and recycling for pickup to landfilling, energy production and the reuse of recycled materials. Sadly, a lot of the garbage we as humans produce end up in our planet’s precious oceans.

In the North Pacific, for example, there is an area the size of Texas that is made up mostly of garbage. This floating island of waste, known as the Great Pacific Garbage Patch, swirls around slowly with the ocean currents, imprisoning ill-fated sea creatures and marine life, while trapping non-biodegradable debris, breaking it down into tiny toxic bits and dispersing it throughout the ocean’s waters.

Of these marine wastes, plastics are perhaps the most common and the most harmful, as they tend to act as a chemical sponge, concentrating the most damaging pollutants found in the world’s oceans. For every pound of natural plankton in this area, there are six pounds of plastic.

While metal pollutants are a component of this toxic mix, steel is more often than not removed from the waste stream before it gets to the oceans.

Boasting magnetic properties, steel is more easily removed from the rest of the recycling stream via magnets. After it is separated from other materials, steel-based products are crushed and baled for transport to steel mills. There, the materials are recovered through chemical and electrolysis baths, purified, melted and cast into ingots. After being poured into sheets, the steel is shaped into cans, siding, storm window frames and other products, thus being reused rather than polluting our oceans.

Steel Slag—A New Home for Marine Life

The pollution that circulates, in combination with warming water temperatures, has severely affected marine ecosystems throughout the world.

Reef degradation is one example. In this situation, “stressed” corals, unable to photosynthesize due to decreasing algae, quickly perish. As industrialization in affected areas continues to increase, damages expanded across the area’s coasts.

The seawater’s self-purification capability then steadily weakens and the accumulating amount of marine wastes and toxic substances permeating the waters keep sunlight from reaching the ocean floor. Without sufficient sunlight—and thus nutrition and oxygenation—the number of algae and sea life dwindle, causing distress to both the ecosystem and the area’s fishing economy.

Yet steel slag, an eco-friendly by-product of steelmaking contains a high proportion of iron and calcium—elements that just so happen to provide ideal conditions for the growth of seaweed and algae spores, and the purification of contaminated sediment.

Which is exactly why communities across the world have been using the product in their marine forestation efforts.

With steel reefs providing a more habitable, biodiverse environment, creatures that had all but died out can prosper. Additionally, the restoration of the marine ecosystem contributes to the increase of fish productivity and therefore the local economies of coastal towns and villages.

POSCO Makes Waves in Ocean Conservation

Just as steel helps to protect the world’s waters, steelmaker POSCO is also making efforts to take care of the sea through an employee volunteer program.

POSCO Volunteers for Clean Ocean has been working on purifying and preserving the oceanic environment for eight years. Some 780 POSCO staff members and their families are currently working as group volunteers, with 270 of them being professional divers who hold skin scuba certificates.

Over the years, POSCO Volunteers for Clean Ocean has participated in diverse activities around Korea’s coastline. Their activities include removing litter from the ocean, removing starfish from farm fisheries and refloating scrapped fishing boats in Korea’s East, West and South Seas. In 2013, the group held an environment purification project in the waters of Dokdo Island.

This month, POSCO Volunteers for Clean Ocean will visit Korea’s Ullengdo Island and Dokdo Island. There, the group will work to restore the marine ecosystem around the island through purification activities.

Moving forward, POSCO, with a little help from steel, will continue to take the lead in protecting the oceanic environment.

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In the North Pacific, there is an entire area the size of Texas that is made up primarily of garbage. This floating island of waste, not-so-affectionately referred to as the Great Pacific Garbage Patch, swirls around slowly with the ocean currents, imprisoning ill-fated sea creatures and marine life, while trapping non-biodegradable debris, breaking it down into tiny toxic bits and dispersing it throughout the ocean’s waters.

Of these marine wastes, plastics are perhaps the most common and the most harmful, as they tend to act as a chemical sponge, concentrating the most damaging pollutants found in the world’s oceans. In fact, for every pound of natural plankton in this area, there are six pounds of plastic.

This gyre, or system of circular ocean current formed by the Earth’s wind patterns and rotational forces, spans waters from North America’s West Coast to Japan, where it meets other gyres. Here, the marine waste is further circulated along oceanic highways.

The continuously circulating pollution, along with warming water temperatures, has severely affected marine ecosystems throughout the world. South Korea, for one, began to encounter the ill effects of this problematic situation in the early 1970s with the first occurrence of reef degradation, or “the whitening phenomenon,” off the peninsula’s southern coasts. “Stressed” coral, unable to photosynthesize due to decreasing algae, quickly began to perish.

As industrialization in these areas continued to increase and tourism began to flourish, damages expanded across the eastern and southern coasts, as well as Jeju Island. The seawater’s self-purification capability steadily weakened and the accumulating amount of marine wastes and toxic substances permeating Korea’s waters kept sunlight from reaching the ocean floor. Without sufficient sunlight, and thus nutrition and oxygenation, the number of algae and sealife dwindled significantly, causing distress to both the ecosystem and the nation’s fishing economy.

Triton Saves the Day

In an effort to rehabilitate Korea’s valuable marine ecosystem, POSCO, a world leading steel company, teamed up with the Research Institute of Science and Technology (RIST) and the Korean government to lead an unprecedented environmental initiative. In 2000, after extensive research, POSCO and RIST developed Triton to promote marine forestation in the damaged areas.

Named after a sea-god of Greek mythology, Triton is structure made of steel slag, an eco-friendly by-product of steel making that contains a high proportion of iron and calcium, elements that just so happen to provide ideal conditions for the growth of seaweed and algae spores, and the purification of contaminated sediment.

It didn’t take long—a year and a half, to be precise—for the forestation efforts to be effective. With steel reefs providing a more habitable, biodiverse environment, abalone and sea cucumber, creatures that had all but died out, prospered. Additionally, the restoration of the marine ecosystem contributed to the increase of fish productivity and therefore the local economies of coastal towns and villages.

That year, close to 200 Triton reefs were installed in eight fisheries along the coastal area of Geomun Island. Since then, POSCO has used steel slag to implement numerous other sea slag forests, and has played an active role in the nation’s marine afforestation projects to help the ecosystem adapt to climate change and demonstrate how by-products from the steel industry can be used in a way that yields positive outcomes for the environment and for communities.

Volunteering to Make a Difference

Unlike other sea-gods, Triton possessed a twisted conch shell, on which he blew like a horn to placate or raise the ocean waters. Legend has it that its sound was so jarring that it could put the giants, who imagined it to be the roar of a dark wild beast, to flight. Like Triton’s conch, POSCO hopes to make a lot of noise about the issues plaguing the world’s oceanic ecosystems.

As such, some 600 of the company’s employees who are passionate about making a difference have joined together to create POSCO Clean Ocean Volunteers. The group, which is dispersed throughout Korea, plays a leading role in marine conservation and educating the public about the importance of the marine environment. The group’s past efforts, in conjunction with local governments, maritime police and the coast guard, have included activities such as water purification, beach clean ups and the salvaging of sunken ships. The Clean Ocean Volunteers have also been proactive in the removal of , which in recent years have increased exponentially and have had a negative impact on the local fishing industry.

Yet, the quality standards for advanced steel used for drilling, producing, transporting, conserving and handling energy resources for oil and gas are becoming stricter so that steel can better endure the harsh drilling environments of the deep sea and polar areas, two domains on the radars of oil exploration geologists.

At this year’s Offshore Technology Conference (OTC), the world’s largest marine technology exhibition, which was held from May 4 to 7 in Houston, Texas, POSCO showcased its efforts on such developments. Included were its lineup of high-grade steel products, as well as the firm’s cross-department collaboration system between steel plants, laboratories and marketing departments, among others, to improve the development of functional, advanced steel.

Considered the leading forum for gathering and sharing offshore oil and gas information (as well as unveiling some impressive machinery), the goal of the conference, according to its website, is to “advance scientific and technical knowledge for the safe, environmentally friendly and sustainable development of offshore oil and gas resources.”

Despite recent low oil prices, the 2015 OTC attracted over 94,000 attendees, making it the sixth largest in its 47-year history. Additionally, approximately 2,700 major oil and global EPC (Engineering, Procurement and Construction) companies from 37 countries participated.

Among these, POSCO represented South Korea, aiming to continue its solution marketing activities for advanced steel for energy, production and technology, as well as steel utilization techniques.

Introducing a variety of the company’s products and technologies, POSCO’s exhibition consisted of four zones: energy plants, energy pipes, shipbuilding, and manganese steel sectors. At the booth, a video on steel-making technology was presented to help attendees better understand steel products.

POSCO displayed its strength as a “total solution provider,” which has helped the firm to simultaneously strengthen its position in the steel market and discover new business opportunities.

Since it first participated in the OTC in 2008, POSCO has operated a booth annually as part of its demand development activities, which have led to the company’s increasing development of energy steel in a short period of time. Moreover, POSCO’s progressive product promotion and supplier certification activities have resulted in a successful long-term contract for the blanket supply of energy steel, and have solidified technical cooperation with clients.

As new advancements are made in offshore drilling technology, the utilization of steel in the industry will also evolve. POSCO will continue to adapt to such changes, and will work hard to manufacture sustainable, quality products to meet the demands of its clients.

Haeundae Beach, a picturesque stretch of white sand in eastern Busan, is vital to the southern coastal city in that it operates as one of the biggest tourist destinations in Korea. Each summer, millions flock to the beach to soak up the sun, feast on succulent seafood and partake in a number of festivals and watersports.

The district’s landscape has undoubtedly changed over the years, but is more vibrant and dynamic than ever before, boasting a slew of natural, historical and contemporary tourist destinations.

Haeundae’s Most Loved Landmarks

Perhaps one of Haeundae’s most cherished landmarks is Dongbaek Island, which is actually now an extension of the mainland. Shrouded in dongbaek trees and evergreens, the small, lush island is an ideal place to be in the midst of Mother Nature herself.

Nurimaru APEC House (Image source: http://bit.ly/1EWMLWi)

Situated on the tip of Dongbaek Island is the Nurimaru APEC House, which was constructed in preparation for the 17th APEC summit in 2005 and has since become representative of Busan. The building’s roof was designed to complement the curves of the island on which it sits, and it offers impressive views of the district’s coastline.

Yonggungsa Temple (Image source: http://bit.ly/1QlqUM0)

On the opposite end of Haeundae lies Haedong Yonggungsa Temple, which was first built in 1376. This Buddhist temple is not only serene, but is extremely unique in that unlike most Korean temples, which are located in the mountains, it is set on a cliff overlooking the ocean. In addition to Buddha’s Birthday, when the temple is canopied in colorful lanterns, crowds flock here on New Year’s Day to watch the first sunrise of the year.

Another favorite Haeundae hotspot is the Sea Life Busan Aquarium, which is home to about 250 species and 35,000 marine animals. Children and adults of all ages enjoy the regularly scheduled activities and shows, and visitors can even have the chance to scuba dive with sharks in the main tank.

While these are the area’s most recognized destinations, another addition to Haeundae’s sandy shore is in the works and it promises to emerge as a representative landmark, contributing greatly to the area’s tourism industry.

A New Addition to Busan’s Best Beach

On April 17, POSCO E&C (CEO Tae-Hyun Hwang) signed a construction contract for a “Haeundae tourist resort city development project” with LCT PFV, the lead developer of the project, which will include a 101-story tower and two 85-story residential buildings, at an expected total cost of 2.7 trillion won.

The Landmark Tower Residence Hotel will consist of 561 standard units and 260 luxury units, and the two residential towers will accommodate 882 households. The complex will also be a one-stop-shop for all things lifestyle, complete with facilities for leisure, recreation, shopping and business.

POSCO E&C has been selected as the contractor for this project because of its brand value, construction capabilities and straightforward financing. Furthermore, POSCO E&C has a record of completing a number of large urban development projects, such as the Northeast Asia Trade Center in Songdo International City.

CEO Tae-hyun Hwang noted, “Through this project, POSCO E&C will prove its technical skills and construction abilities by perfectly constructing the complex, a future landmark of Busan. Also, we will use this as an opportunity to contribute to the development of the domestic construction business.”

So, the next time you’re in Haeundae enjoying all the wonderful things it has to offer, be sure not to miss any of its iconic destinations and catch a glimpse of the construction project that will most certainly be the city’s next representative landmark.

At the Forefront of Korea’s Marine Ecology Conservation: POSCO Volunteers for Clean Ocean 

POSCO Volunteers for Clean Ocean, established on November 25, 2009, is an organization committed to saving Korea’s waters. Its activities, carried out by members with professional experience in scuba diving, are varied: cleaning waters and beaches near company processing plants in Pohang and Gwangyang, aiding regional fisheries, lifesaving and salvaging sunken ships are all part of POSCO Volunteers for Clean Ocean’s efforts to protect and preserve Korea’s waters. In addition, the volunteer organization symbolizes the POSCO Green Environment Spirit by actively participating in marine conservation initiatives alongside various organizations in collaborative events such as Water Day and Oceans Day.

Passion? Check. Professionalism? Check.  

POSCO Volunteers for Clean Ocean has 780 passionate members, 270 of whom hold certified licenses for skin and scuba diving. The high level of professionalism makes it possible for the volunteers to engage in collaborative lifesaving efforts with other organizations such as the Coast Guard.

In August last year, POSCO Volunteers for Clean Ocean was shown on the popular KBS environmental documentary <Environment Special> displaying the Korean flag at Dokdo after removing the starfish that were damaging the ecosystem. Dokdo, a small island located in the East Sea, bears great significance to Korea as the nation has been in continuous debate with Japan over which country is the rightful owner. Such passionate activities were made possible by regular meetings and training: the organization meets every Saturday to preserve Korea’s oceans such as collaborating with regional schools and local residents to improve the coastal environment and ecology.

Introducing the Various Activities of POSCO Volunteers for Clean Ocean

POSCO Volunteers for Clean Ocean working to purify the ocean water at a beach near Pohang

POSCO Volunteers for Clean Ocean visits Bal-san ri Dong-hae myun, Pohang during Global Volunteer Week

Cleaning up the coastline and getting rid of organisms that harm the marine ecology at Myodo Island in Yeosu. 

Interview: POSCO Volunteers for Clean Ocean President Jong-bin Park on the Organization and its Future

“We will focus on recovering the marine ecosystem and make a tangible contribution to the fishing economy.”

I remember the early days of the POSCO Volunteers for Clean Ocean when some fishers were concerned about the impact our activities might have on their farms. Recently, however, local communities are competing to invite us as we have demonstrated over time our contribution in recovering the marine ecosystem. Local governments are inviting us to various environmentalist events, which helps us establish our corporate image as a core volunteer group as well as leading to more opportunities to participate in joint efforts to improve regional communities.

Our next plan is to raise awareness of eco-friendly steel material by integrating them into our volunteer activities. Recently, our members installed the artificial steel reef “Triton” in the waters of Guman-yi ri Dae-bo myun. We were surprised to see the marine ecosystem recovering rapidly due to the swift growth of marine algae following the installment of Triton. We also plan to make efforts to improve the fishing economy.

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What is Triton?

‘Triton’ was named after a sea-god from ancient Greek mythology, who controlled all ocean. The key to Triton was something called a Steel Slag. It is a by-product of molten metal from melting iron ore, soft coal, limestone—the three ingredients for producing steel—in extremely high temperature. Steel Slag is an eco-friendly resource that can be widely used for many purposes such as cement, manures, and aggregates. POSCO’s ‘Triton’ is a low-carbon fish reef using such Steel Slag. It creates a healthy environment for marine life to flourish, by attracting the accession of marine plants in the area. [/box]

We hope that our readers were able to feel POSCO Volunteers for Clean Ocean’s passion for marine ecology preservation through this post. POSCO Volunteers for Clean Ocean will continue in its endeavors to save the waters of Korea.

POSCO will be modifying its mid-term strategy in order to achieve “growth with substantiality”. On May 19 at the Korea Exchange in Yeouido, Seoul, POSCO had its first investors forum since CEO Kwon was installed as the new CEO. On this day, new management strategies to restore financial soundness based on a focus on the core steel business, mega growth, and management restructuring for efficiency were announced.

 Pictured here: CEO Ohjoon Kwon, speaking at the POSCO Investors’ Forum

According to the new management strategies, POSCO has plans to strengthen its EBITDA to 8.5 trillion won with Credit A ratings by 2016, to be at the global top standards for financial soundness.  At the same time, POSCO has plans to cultivate its source material and clean energy businesses to promote mega growth.

Pictured here: CEO Ohjoon Kwon, speaking at the POSCO Investors’ Forum

In order to achieve its mid-term management goals, POSCO plans to change from its former ‘Own & Compete’ based M&A strategy to a ‘Connect & Collaborate’ based strategic partnership, with plans to seek a diverse range of domestic and international companies.

POSCO’s business structure will be reformed so that the strategy that previously focused on expanding steel, materials, energy industries will now be focused on the core steel business and promote mega-growth engines in the two sectors of source material and clean energy. The projects nominated for focused development are source material which encompasses lithium, nickel and clean energy which includes fuel cells and clean coal businesses.

Other fields can be subject to subsequent business restructuring if it will increase the company value and meet the following principles:

1)      First, evaluate whether the entity is recognized as top tier in the domestic market or is seen as essential towards strengthening the competitiveness of the core steel business

2)      Second, even if it is a blue-chip affiliate, consider pushing ahead with the sale or IPO of shares that exceed what is necessary to maintain right of management

3)      Third, plan internal restructuring to strengthen efficiency based on business consolidation, divisions or other adjustments

 Pictured here: Attendees at the POSCO Investors’ Forum

The priority will be placed on restructuring that has the most impact and can relatively be done easily. Although specific plans for restructuring have not been confirmed yet, entities that have been selected will promptly push ahead to show results.

The reorganization that emphasizes the steel business will select seven strategic industries including automotive, marine and energy to grow sales and expand the sales percentage of profitable, premium products. In addition, in order to turnaround overseas business to surplus by 2016, POSCO plans to develop high added-value products in a timely matter to meet market demands and also strengthen solution marketing offerings.

The energy business plans to grow the domestic coal power plant market and target emerging markets for overseas growth while also fostering the fuel cell industry. It also has plans to devote initial investment towards securing technologies for the source material business to strengthen competitiveness.  Business entities including E&C, Trading, and ICT will focus on core competencies that will provide profitability and growth for the entire company.

Pictured here: Q&A session during the POSCO Investors’ Forum

If POSCO’s new management strategies run smoothly, POSCO can expect 32 trillion KRW in sales with 3 trillion KRW in operating profit, 9% operating profit margin, on a stand-alone basis.  On a consolidated basis, that would mean 78 trillion KRW in sales with 5 trillion KRW in operating profit, 6% operating profit margin. Debt-to-equity ratio can be expected to be lower as well.

Pictured here: Panel discussion at the POSCO Investors’ Forum

At the investors forum, CEO Kwon announced, “The strategy paradigm will change in order for POSCO to have stable growth and we will focus on strengthening competitiveness and improving profitability.” Moreover, he said, “With drastic restructuring focused on internal efficiency, we will give back to shareholders, investors, customers, partners, employees, local communities and all those who support and love POSCO.”

Pictured here: Ohjoon Kwon, speaking at the POSCO Investors’ Forum

Growth laid on internal strength will allow POSCO to achieve the new vision of ‘POSCO the Great!’

At the awards ceremony organized by the Sharing Korea Campaign Office and hosted by the Ministry of Health and Welfare and KBS, Vice President Hwang Eun-yeon received the President’s Award on behalf of POSCO.

POSCO received the President’s Award for carrying out various social contribution projects and for the strength in depth of its employees’ participation in the sharing activities.

Ever since its foundation, POSCO has never stinted in its support of ways to grow together with the local community, look after neglected neighbors domestically and internationally, and foster global talent. Indeed, 98% of all company employees participate in volunteer activities with the average employee volunteering 36 hours, making POSCO a leader in social contribution activities.

POSCO Family employees and families participate in volunteer activities on ‘Sharing Saturday’ once a month, while a ‘Global Volunteer Week’ is in operation whereby POSCO Family employees participate across the globe in volunteer activities for one week. This year, over 55,000 POSCO Family employees from 22 countries participated either in looking after the socially marginalized or in environmental cleanup activities.

In addition, emergency relief kits were made and provided to victims of natural disasters, while clean ocean volunteer activities have been carried out to cleanup marine ecosystems. What’s more, sister relationships with 240 organizations and villages nationwide are helping neighbors in need throughout Korea.

The Global Saemaul (New Community) Movement has been promoted in developing countries to support the fight against hunger and help in the battle to overcome poverty. The POSCO Children’s Center established in Zimbabwe, Africa, provides education for children aged 3~5 along with children suffering from aids, and is operated by support funds from POSCO Family employees.

Not only that, but POSCO employees have been participating in the ‘1% Sharing Activity’ by donating 1% of their wages to neighbors in need. The sharing activity, which started in October 2011 among 930 POSCO and POSCO family company officers and senior managers, has been extended throughout the company exceeding a 96% participation rate in just 18 months since it first started at POSCO, and with 90% at investing companies. POSCO established the 1% Sharing Foundation to utilize funds more meaningfully, and plans to carry out systematic social contribution activities.

Meanwhile, following the Sharing Korea awards, the 4^th Annual Sharing Korea Festival was held at the Seoul World Cup Stadium Peace Plaza for two days starting on the 5^th. POSCO participated and operated a booth that showcased POSCO’s social contribution and sharing activities.

Accomplishment Made Upon Workers’ Sweats and Tears

(Front Row, From Left) Minister of Rail Transportation Than Htay, Vice President Nyan Htun, Minister of Energy Zeyar Aung and Daewoo International Vice Chairman Lee Dong-hee

CEO and Chairman of POSCO Chung Joon-yang, Vice chairman of Daewoo International Lee Dong-hee, Vice President of Myanmar Nuan Tun and about 150 guests from the governments and POSCO partners celebrated the kickoff of offshore natural gas commercialization.

This ceremony for the gas field development by Daewoo International holds a significant meaning for all participants because the project went through a number of major difficulties due to sluggish investment conditions. Nevertheless, the employees’ sweats and tears have finally been paid for.

Daewoo International drilled the submarine area in Westside sea of Myanmar, in which other oil companies from France, Japan and the U.S. failed to find any feasible gas field in the 1970s. By adopting a new concept of exploration, they found ‘Shwe’ gas field in 2004 and also succeeded in discovering ‘Shwe Phyu’ and ‘Mya’ gas fields in 2005 and 2006.

The total amount of gas deposit in these three gas fields reach about 4.5 trillion cubic feet, which is the biggest volume of gas fields found by any Korean oil/gas companies around the world. In addition, the Myanmar gas field operation was undertaken by Korea’s own technologies and know-hows. It is regarded as a cornerstone and a good model for the Korean oil and gas companies operating overseas.

During the ceremony, Chairman Chung shared his feelings with the audience by saying, “This is the most rewarding moment since Daewoo International started working with us as a member of POSCO Family.” “To build a better world with dreams, hopes, materials and energies, which is POSCO’s vision, we absolutely need Daewoo International’s competence and know-hows in resource development,” he added.

Lee Dong-hee, Vice Chairman of Daewoo International, also expressed his gratitude for the completion. “I am overwhelmed to see the successful result of the Myanmar gas field project, which is built upon our employees’ sweats and tears,” he said. The Vice Chairman Lee emphasized that Daewoo International will continue to focus on resource development and new growth engines to achieve another highly fruitful outcome like they have done in Myanmar.

Myanmar’s Local Society Impressed by Daewoo International’s CSR Activity

Daewoo International also hosted a donation ceremony at Kyuak Phyu to celebrate the completion of roads renovation as a part of the corporate’s project for the local infrastructure enhancement

In line with the gas field operation, Daewoo International also operated a series of CSR activities in Myanmar. For a town of Kyuak Phyu, Daewoo International built more than 10 kilometer-long roads and bridges. They also provided supports for education, medical assistance, water supply and other infrastructure. By doing so, Daewoo International aimed at improving the quality of local residents’ lives and the prosperity of Kyuak Phyu.

Notably, Daewoo International is also investing USD 200,000 every year to create a submarine forest in Mangrove, located near Ramree Island. The project will assist the subtropical region’s environment protection and provide protections from Tsunamis and cyclones.

A 4300kva (20㎿ per day) diesel generator is also installed for the on-land gas terminal in Kyuak Phyu, to ease the electricity shortage for about 5,000 local homes. The Myanmar Investment Commission (MIC) appreciated the effort from Daewoo International and granted a commendation for their social contribution.

Daewoo International’s Oil/Gas Development Operations Continue

Since the Korean government granted the right to explore the seabed mines in the East Sea in September 2011, Daewoo International has been pushing ahead with the operation in association with the Korea National Oil Corporation. In March, Daewoo International has also secured an investment from Woodside, the biggest oil development company in Australia, for AD-7, a marine mine lot in vicinity of the Myanmar’s gas field. A month later, Daewoo International was also able to secure its right to investigate and explore mines in RSF-7 and MOGE-8, both located in the central inland area of Myanmar. Daewoo International will keep moving forward to the continuous growth and advancement in resource development division.