200 saplings planted across 1,500 pyeong of the CGL plant, supported by the City of Altamira

POSCO Mexico took the lead in creating a “green forest” at its Altamira CGL Plant in collaboration with the City of Altamira and the Mexican Water Resources Agency during a tree-planting event held on September 27.

The event was attended by Mayor Armando of Altamira, German, Director of the Mexican Water Resources Agency, and POSCO Mexico President Woo-il Kim.

Altamira, home to many petrochemical complexes, has actively pursued various carbon reduction initiatives. One such project, the Green Forest initiative, provides free saplings to environmentally responsible companies, helping create green spaces.

As part of the Green Forest project, POSCO Mexico planted 200 saplings, including jacaranda trees, rosewood, and flame trees, across 1,500 pyeong of unused land at the CGL plant.

Since 2022, POSCO Mexico has collaborated with the Mexican Water Resources Agency on the ‘Oasis Project,’ which aims to address water scarcity by recycling water, contributing to cost savings, and preventing environmental pollution. The recycled water will also irrigate the newly created green forest.

Mayor Armando of Altamira expressed his gratitude, saying, “Thank you to POSCO Mexico for participating in the green space project to help reduce carbon emissions. POSCO Mexico, which has received ESR certification for eight consecutive years and actively engages in ESG management, is a source of pride for Altamira. Despite this year’s severe drought and abnormal weather, let’s continue to work together to overcome this crisis.”

President Woo-il Kim added, “POSCO Mexico is actively participating in solving Mexico’s environmental challenges, including the Green Forest initiative and the Oasis Project. We will continue strengthening our cooperation with the local community, leading efforts to reduce carbon emissions and address water scarcity as part of our commitment to tackling climate change.”

Meanwhile, a day before the event, POSCO Mexico employees and their families participated in the “Love Lunchbox” volunteer initiative, providing meals to residents in need.

▲On September 27, POSCO Mexico held a tree-planting event at its Altamira CGL Plant in collaboration with the City of Altamira and the Mexican Water Resources Agency. From left: POSCO Mexico President Woo-il Kim, Mayor Armando of Altamira, and German, Director of the Mexican Water Resources Agency.

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

▲ The center director of POSCO-TNPC and eight employees made and delivered a donation set (including a 2-month supply of diapers) to support low-income families such as single mothers and disabled children at the Women’s Support Center in Bursa. It was meaningful in that the costs of the donated sets were funded by savings in electricity bills and costs associated with replacing the company’s LEDs and purchasing waste paper collection boxes.

▲ POSCO-ASSAN TST employees visited a kindergarten near its head office, created a new playground using waste wood, and performed environmental improvement by repainting old play equipment.

▲ POSCO-PWPC visited a nearby organization for disabled children and held an event to promote Korean culture through Korean language classes. The 10 participating employees communicated with the children by teaching them simple Korean greetings and writing their names in Korean.

▲ Four POSCO-Brazil employees conducted environmental cleanup activities at Bosque de Barra Park in downtown Rio de Janeiro on May 28.

▲ POSCO-Mexico employees volunteered to make bread at the Hope Center in downtown Altamira with officials from the Tamaulipas State Department of Welfare. This volunteer activity was especially meaningful in that employees and their families participated.

▲ Employees of four POSCO-MPPC factories carried out various volunteer activities for nine days. Employees of Factory 1 visited a local daycare center, painted classroom walls and floors, and cleaned vegetables and fruits to be delivered to nearby neighbors in need at a food bank. Employees of Factory 2 visited the government agency DIF and donated walkers, canes, and computers. They also visited a public kindergarten and donated playground equipment and computers. Employees of Factory 3 painted a government-supported soup kitchen, and those of Factory 4 visited a local orphanage and donated chairs.

▲ POSCO-MVWPC’s 42 employees visited a local school to paint the exterior walls of the school buildings and replace floor tiles, creating comfortable areas throughout the school to encourage students’ learning activities.

▲ All 52 employees of the AAPC Factory in the United States collected waste around each business site as part of their environmental cleanup activities.

▲ POSCO-America’s nine employees visited the Tomb of the Unknown Soldier in Arlington National Cemetery to pay their respects and collected trash around the tombstone.

▲ POSCO-Australia employees held a joint event with KCCA, the Australian Chamber of Commerce and Industry, and discussed plans for charity activities, and 55 members and their families participated in a charity walking competition to support children with neuroblastoma and completed a 5-kilometer walking course.

▲ POSCO-Western Australia employees conducted environmental cleanup by collecting trash around the Korean War Veterans Memorial in Kings Park, Perth, Western Australia and cleaned pollutants from the monument.

▲ Thirty-five members of the Mexican Trading Corporation’s volunteer group visited a child and youth protection center in Mexico City, donated various items, and interacted with the children by playing piñata, a traditional Mexican game. (Right) Eight members of the POSCO International Mexico Motor Core Corporation visited a nearby elementary school, presented a first aid kit, cleaning supplies, and school supply sets, and held a tree planting ceremony.

▲ (Left) Nine members of a volunteer group at POSCO International Brazil’s Sao Paulo office donated relief goods for recovery from a flood to victims of heavy rain in Ihu Grande do Sul, Brazil. (Right) Eleven members of the POSCO International BA branch’s volunteer group donated daily necessities and served dinner to low-income and disabled families in a slum in Buenos Aires.

▲ (Left) Eight members of the Bogota branch visited the Red Cross in Bogota and practiced love for their neighbors by donating blood. (Right) Five members of the Panama branch’s volunteer group visited the Panama Canal Miraflores Visitor Center to collect trash and carry out environmental cleanup activities.

▲ Volunteer groups at the German and Italian trading corporations visited a park near the head office and carried out environmental cleanup activities.

▲One hundred and nineteen members of the Uzbek Cotton Corporation’s volunteer group carried out environmental cleaning activities inside and outside the corporation’s factory and around the Fergana region.

▲ (Left) Five members of the Dammam branch’s volunteer group visited nearby Al Khor Beach and carried out environmental cleanup activities on the shore by collecting trash discarded by tourists. (Right) Six members of the Cairo branch’s volunteer group planted 20 lemon trees and 20 pomegranate trees around El Horreya Women’s Hospital.

▲ Eight members of the Johannesburg branch’s volunteer group carried out environmental cleanup activities by picking up trash around the branch office and removing fallen leaves that had been neglected for a long time.

▲ Eleven members of the Tokyo head office’s volunteer group planted flowers in flower beds at nearby Tsukiji River Ginza Park, cleaned up the area around the park, visited a senior center to clean balconies and windows on each floor and organized the garden.

▲ Members of the Osaka branch’s volunteer group visited a nearby orphanage and provided necessary items such as strollers, car seats, and rice and served meals to the homeless in the park.

▲ (Left) Thirteen members of the Nagoya branch’s volunteer group carried out environmental cleanup activities in the Nagoya Castle area. (Right) Twenty-six members of the Beijing branch’s volunteer group visited a nearby senior welfare center to donate necessary items, make meat dumplings, and serve a warm dinner to local seniors living alone.

▲ (Left) Five members of the Qingdao branch’s volunteer group visited a nearby cherry farm, helped with the harvest, purchased cherries produced by the farm, and donated them to a local nursing home. (Right) Six members of the Wuhan branch’s volunteer group visited a childcare facility and presented daily necessities and study materials to the children.

▲ (Left) POSCO-CORE’s volunteer group visited the Yanzi Lake’s Ecological Park near the company and carried out environmental cleanup activities. (Right) Forty-five members of PT. BIA’s volunteer group collected trash around the residences of Papua Palm Farm employees and maintained drainage channels.

▲ (Left) Eleven members of the Labor-Management Council-PT. BIA corporation’s volunteer group donated children’s art supplies to a kindergarten near the company. (Right) Five members of PT. KPE’s volunteer group delivered donations needed to cook lunch boxes to Sewan Village in Indonesia and then participated in cooking.

▲(Left) Twelve members of the Indonesia E&P Corporation’s volunteer group visited a major park in Jakarta and carried out environmental cleanup activities, collecting various types of trash. (Right) Twenty members of the MPCC volunteer group of the Myanmar PRC Corporation and hotel corporation donated 35 sacks of rice and towels for two months to Agape Orphanage Center and carried out residential environment improvement activities by replacing old roofs.

▲(Left) One hundred and twenty-nine members of the Gas Field Operations Office’s volunteer group visited the Yangon Education Center for the Blind and donated braille printing paper, shampoo, toothpaste, and various snacks. (Right) Thirteen members of the Singapore Trading Corporation’s volunteer group carried out volunteer work at the Lions Befrienders Senior Welfare Center by packing and donating goodie bags containing daily necessities such as ramen, canned food, biscuits, and toiletries.

▲(Left) Ten members of the Indian Motor Core corporation’s volunteer group provided snacks and school supplies to boarding schools for children from single-parent and low-income families. Twelve members of the Manila branch’s volunteer group carried out environmental cleanup activities at Manila Baywalk Dolomite Beach. (Right) Seven members of the Sydney branch’s volunteer group participated in activities to remove parasitic trees and preserve native trees to protect the forest at the Field of Mars Reserve in Sydney.

Although the regions, environments, and languages ​​are different,
the hearts of POSCO Group executives and employees have become one through ‘sharing.’
POSCO Group’s volunteer activities for coexistence with the local community will continue in the future.
We ask for your interest and support!

Do you wonder about people active in POSCO’s overseas corporations in various countries? POSCO Newsroom presents vivid stories of employees of POSCO’s overseas operations. In Place 2, we will meet Marisol Soldevilla, the leader of the Order Management Team of the Process Management Department at POSCO-Mexico.

Hi, I am Marisol Soldevilla, the leader of the Order Management Team of the Process Management Department at POSCO-Mexico, which was established in the Industrial Port of Altamira, Tamaulipas, Mexico, in December 2006. POSCO-Mexico manufactures galvanized steel sheets for automobiles and home appliances using a hot-dip galvanized steel sheet process called Continuous Galvanizing Line (CGL). The production capacity increased from 400,000 tons per year in 2006 to 500,000 tons per year after adding a second production line in 2014 to meet the increasing demand. It now has a total annual production capacity of 900,000 tons. We supply our products to Nissan, Volkswagen, GM, Honda, and Chrysler in Mexico and automobile manufacturers in the southern United States.

POSCO-Mexico highlights the growth of Mexico. We are writing a success story centered around the Port of Altamira, the best logistics center in Latin America, by creating jobs and developing human resources. POSCO is committed to realizing its corporate value of pursuing social responsibility and public interest. We are continuing our efforts for shared growth with local communities and giving back to society, such as creating volunteer groups to improve the quality of life in the local communities.

I joined POSCO-Mexico on October 1, 2010, 4 years after I moved to Altamira, Tamaulipas from another region. Before joining POSCO-Mexico, I worked in the logistics of exporting and importing synthetic rubber to and from Asia, Europe, and the United States at a petrochemical company. I also had experience managing contracts with land and sea transportation companies.

Before moving to Altamira, I only knew that POSCO was a Korean company that manufactured steel sheets for automobiles. Residing in Altamira, I learned that POSCO was the first steel maker in the metropolitan area and that the company provided its employees with various opportunities to develop expertise. Having dreamed of developing work capabilities and skills to become a professional, I was convinced that joining POSCO was a new challenge and opportunity.

After joining POSCO-Mexico, I worked in the purchasing department, managing suppliers and utilizing my previous work experience. My work mostly involved purchasing raw materials such as chemicals, zinc, and packaging. After working in purchasing for two years, I moved to the logistics department, where I was responsible for managing the rail and truck transportation of rolls for export.

I manage the production plan, an important task that establishes work plans based on sales, raw materials, and delivery dates and ensures production without setbacks. I am proud that I am POSCO-Mexico’s guardian to fulfill promises strictly and protect customer trust and high quality.

Once I became a POSCO-Mexico member, I knew my confidence was correct. POSCO provided its employees many opportunities to improve their job capabilities and supported them in working under better conditions. Employees gained confidence and showed positive performance under the support of a stable company and were given opportunities for promotion.

POSCO-Mexico has created a collaborative work environment based on an organizational culture of members being considerate and communicating smoothly with each other. Employees can demonstrate their creativity, autonomy, and flexibility and achieve big and small results in their work thanks to the fun and supportive atmosphere. The company recognizes its employees’ achievements and encourages their continued growth.

I will introduce various programs that POSCO-Mexico carries out every year to support the healthy lives of its employees.

People with diverse cultural backgrounds work together at POSCO-Mexico. Cultural communication skills are the basic requirement for working in such a multicultural environment, and a soft attitude to communicate in situations that require cooperation and efforts to adapt to rapidly changing situations are also necessary. When I first worked with Korean employees, I was refreshed by their attitude of communicating directly and clearly and explaining necessary information efficiently and concisely. It is because Mexican employees tend to share various stories that may have nothing to the necessary information.

If any Korean employee wants to work at POSCO-Mexico, I advise them that it is important to learn Spanish and actively participate in smooth conversation and communication! I am studying more in Korea to improve my understanding of Korean culture. I am also learning the attitude of admitting mistakes and being punctual.

I am especially interested in Korean culture and trying to understand it better. I learned Korean to communicate smoothly without misunderstanding with Korean employees and made frequent opportunities to eat Korean food. Food best reflects the culture of a country! For example, I often drank Americano without sugar, which many Koreans enjoy. I also practice segregated trash collection and recycling like Koreans. As I studied Korean food and culture, I naturally got to understand Korean history, customs, and traditions.

Those in Korea may get closer to their POSCO-Mexico colleagues while eating traditional Mexican food.

I am a working mom who is raising a child while working. Maintaining a life balance takes a lot of effort for a working mom, but it is not impossible. I do my best at work, and when I am home, I think of my family’s happiness first. When my son comes home from school, I work out with him to relieve stress and then have a talk.

As in Korea, family is very important in Mexico, and there are many occasions when families gather. We keep a strong family relationship by gathering for christenings, weddings, and sports such as soccer. I also visit Altamira’s attractions with my family and have a good time whenever possible. I will now talk about the attractions of Altamira.

Due to the nature of the steel industry, there are many male leaders, but POSCO-Mexico recognized the experience and leadership of female employees like me without prejudice. I set my principles as a female leader and have always focused on them at work. I often communicated with my team members to fulfill my role as a focal point and built solidarity by taking an interest in my colleagues. I also focused on cultivating team members’ emotional intelligence to coordinate relationships among them and developing collaborative competency so that they can cooperate systematically and soundly.

Moreover, I maintained an attitude of thinking and acting in flexible and adaptable ways and kept an open mind about innovations and operational changes. POSCO-Mexico recognized my efforts and encouraged and supported me.

I intend to continue to work hard and become a leader who is a stepping stone for the growth of my team members. I want to create a rational work environment where my colleagues can freely present their ideas rather than just follow my opinions because I am their leader. I will communicate with my team members more often to implement new processes or ideas to increase the company’s profits. Of course, developing my work capabilities further and playing an active role as an expert at POSCO-Mexico is important! I will come out of the comfort zone before anybody and take a challenging path to achieve all these dreams.

In that sense, the Global Leadership Course for New Officials I received from POSCO in Korea this year was truly special.

During this training, I learned how to lead POSCO-Mexico employees and immerse them in their work. The training in Korea took place in May, but I had studied the roles and responsibilities required of a leader and how to adapt since March. I changed my mindset through the daily letter and learned leadership skills in many areas by watching video materials. In Korea, I was able to objectively reflect on how my actions affect my team members, identify improvement directions, and determine the optimum means of implementation in the future.

The leadership training in Korea was an opportunity to meet global leaders from many countries and form a network with them. Understanding each other’s tendencies and exchanging diverse opinions made me see many things differently. Thank you, POSCO Group, for giving me a useful experience and an opportunity to grow into a leader! Please watch as I contribute to creating an even better future for POSCO-Mexico.

POSCO-Mexico has actively explored solutions to the environmental challenges at Altamira Industrial Park, where there is a notable lack of green spaces. After eighteen months of dedication, the ‘With POSCO Green Forest’ initiative was inaugurated in October 2023. This project not only aims to heighten local awareness of environmental preservation but also strives to reduce air pollution. We warmly invite you to visit the ‘With POSCO Green Forest’ site, a place where life thrives, the air is purer, and a sustainable future is being carefully cultivated.

POSCO-Mexico commenced operations in December 2006 and launched its first continuous galvanizing line (CGL) at the Altamira Industrial Port in Tamaulipas in 2009. To meet increasing demand, the company enhanced its production capabilities by adding a second CGL in 2014, reinforcing its role as a key contributor to Mexico’s steel industry.

The Altamira Industrial Complex, home to POSCO-Mexico’s two hot-dip galvanized steel production facilities (CGL), serves as a center for chemical and logistics companies. This industrial activity leads to high levels of air pollutants, including sulfur oxides. Without significant green spaces to mitigate these effects, and compounded by frequent heatwaves and droughts, air pollution has become a critical social issue, posing health risks to the local population.

Committed to advancing corporate citizenship through community engagement and human resource development, POSCO-Mexico promptly acknowledged the urgent issue of air pollution. In response, the company launched a resolute effort to address it. After eighteen months of dedicated work, POSCO-Mexico reached a significant milestone in August 2023 with the establishment of the ‘With POSCO Green Forest,’ aimed at environmental improvement. We are delighted to share the journey of creating this forest with you.

Through the launch of the ‘With POSCO Green Forest’ initiative, POSCO-Mexico is set to develop a lush forest in Altamira Industrial Park, aiming to improve air quality and reduce pollution.

After thorough preliminary research, POSCO-Mexico proactively engaged stakeholders, underlining the urgent need to establish a forest. This concerted effort not only heightened awareness but also encouraged active participation. As a result, the municipal government of the involved Mexican city demonstrated its support by generously providing a 1.09-acre plot of land at no cost for the forest project, affirming the success of POSCO-Mexico’s initiatives.

POSCO-Mexico conducted extensive research on the Altamira region, the selected site for this forest, and customized the ecosystem to fit local conditions. The area’s tropical climate, marked by limited rainfall except during the rainy season from September to November, necessitated the design of an efficient irrigation system to support optimal tree growth. POSCO-Mexico cleverly tackled this challenge by integrating a tailored irrigation solution that supports the forest’s development.

POSCO-Mexico’s Sustainable initiatives feature rainwater recycling and the use of renewable solar energy. The effectiveness of these technologies led to their integration into the adjacent ‘With POSCO Smart Bus Stop’ project, which also supports the nearby forest. A rain gutter installed on the bus stop’s roof channels rainwater into a storage tank, from where it is then distributed via pipes to forest sprinklers that automatically water the trees at set intervals. This innovative system underscores POSCO-Mexico’s dedication to sustainability and environmental stewardship. Additionally, the smart bus stop, powered by solar energy and launched in 2021, offers a carbon-neutral solution that improves safety and convenience for residents, ensuring reliable bus service during extreme weather conditions.

POSCO-Mexico’s eco-conscious irrigation system has nurtured the development of a self-sustaining forest, now thriving independently. This milestone was celebrated by Mexican media with the headline, ‘Tamaulipas State, Mexico Welcomes Its First Self-Sustaining Forest.’

▲Mexican media highlighted ‘With POSCO Green Forest’ project.

POSAMI, POSCO-Mexico’s employee volunteer program, successfully implemented an Sustainable forest that utilizes rainwater recycling. Through eight planting initiatives, POSAMI has planted a total of 1,577 trees, comprising 175 oak trees and 1,402 fig trees. These species were chosen for their superior carbon absorption capabilities.

In September 2022, employees and their families participated in a tree-planting volunteer event, with children actively joining their parents in volunteer uniforms. Together, they not only planted trees but also deepened their understanding of environmental preservation. This event reinforced POSCO’s dedication to corporate citizenship and its commitment to creating a better world. In the ‘With POSCO Green Forest,’ approximately 1,577 trees, including those planted by the volunteers, have now taken root, symbolizing a beacon of hope.

The project’s success was due to a collaborative effort that involved close communication with the city government, neighboring companies, and a local university. POSCO-Mexico spearheaded the initiative by developing a comprehensive plan for the forest, designing the ecosystem, and organizing planting activities, all while actively engaging the community to garner support. The municipal government was instrumental in providing the land at no cost and facilitated the involvement of nearby companies. Six companies in the industrial park—M&G, AISTAC, Saavi, Orbia, Styropek, and Indelpro—donated resources and technologies to enhance the project’s success. Additionally, a local university contributed valuable expertise by creating aerial views of the forest and analyzing the environmental, social, and governance (ESG) financial impacts.

To recognize the collaborative efforts, flags representing the contributing companies, POSCO-Mexico, and the Altamira municipal government were raised at the site. Additionally, a promotional video detailing the creation of the ‘With POSCO Green Forest’ is showcased on municipally owned LED boards, serving as a reminder to residents about the importance of environmental protection.

Furthermore, POSCO-Mexico inscribed five brands of corporate citizenship onto the exterior walls of five rainwater harvesting tanks to promote its corporate citizenship values and enhance its visibility.

Over the next decade, the lush green forest, which includes 1,577 oak and fig trees, is expected to absorb approximately 740 tons of carbon dioxide and produce 140 tons of oxygen. These activities are estimated to generate an economic benefit of $529,100. Additionally, the forest is set to reduce the local heat island effect and lower particulate matter concentrations, significantly improving air quality in the community.

POSCO-Mexico will track ESG impacts by systematically documenting changes in carbon and oxygen levels, and will get ready for the forthcoming Mexican cap-and-trade system and the tightening of environmental regulations. Continuing its efforts to set a global standard and lead in ESG, POSCO-Mexico remains dedicated to fulfilling its community responsibilities through diverse social contribution efforts.

]]> https://newsroom.posco.com/en/posco-opens-second-wire-rod-processing-plant-indiana/ Sun, 24 Sep 2017 09:00:58 +0000 POSCO opened a wire rod processing plant in the U.S., home to the largest wire rod market in the world, that will yield an annual production capacity of 25,000 tons.

POSCO held a ribbon-cutting ceremony for its new wire rod processing center in Jeffersonville, Indiana on September 22. More than 150 people, including POSCO CEO Ohjoon Kwon, Indiana Governor Eric Holcomb, Representative Trey Hollingsworth, Chicago’s Consul General Jong-guk Lee and officials from local customers such as Nissan, Fontana, Taeyang Metal Industrial Co., Ltd. and Semblex attended the ceremony.

From third on the left to right is Economic and Redevelopment Director Rob Waiz, Governor Eric Holcomb, POSCO CEO Ohjoon Kwon, Representative Trey Hollingsworth and the Consul General in Chicago, Jong-guk Lee.

Wire rods are steel products used to make bolts, nuts, bearings and long steel used in automobiles, electronics, industrial machines and construction. POSCO is planning to focus its production on high-end automotive parts and bearings that are not currently being produced by local steelmakers in the U.S.

The new wire rod processing center will bring raw materials from Korea, heat-treat them, remove impurities, process them into thin wire rods and customize the final product to the thickness and strength that customers want. Construction began in April 2016, and POSCO invested a total USD 20.9 million. It is POSCO’s second largest overseas wire rod processing center, next to its center in Mexico.

From third on the left to right is Economic and Redevelopment Director Rob Waiz, Governor Eric Holcomb, POSCO CEO Ohjoon Kwon, Representative Trey Hollingsworth and the Consul General in Chicago, Jong-guk Lee.

POSCO is planning to preempt the high-end wire rod market in the US by not merely selling products, but also providing local services such as quality support, development of new steel products and provision of utilization techniques. The products manufactured will be delivered to Semblex and Taeyang Metal Industrial, Korean companies in the U.S. and local automotive parts makers like Nissan and Fontana.

JP Steel Co., Ltd., which owns 2.2 percent of stakes in the new wire rod processing center, will directly oversee production. JP Steel possesses the technology used for processing POSCO’s wire rods into products that meet the thickness specifications of customers. One of POSCO’s strategies for ensuring the mutual prosperity of small, medium and large-sized companies is to enter a new overseas market together with small and medium-sized suppliers while protecting their technology and business areas.    

Governor Eric Holcomb said, “I hope that POSCO’s wire rod processing center will help improve the industrial competitiveness of American automakers and parts makers, and invigorate the local economy. We will do everything we can to help the new plant become stabilized early.”

CEO Kwon stated, “POSCO is now able to sell our premium products to the United States, the world’s largest wire rod market, and American automakers and parts makers can use quality products to enhance their competitiveness. I hope that this will help domestic parts makers using wire rods make inroads into the US market.”

Cover photo courtesy of Biz Journals.

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Volunteer activities include helping to improve housing conditions for underprivileged neighborhoods, baking, painting murals, and mentoring the local youth. On May 30, POSCO CEO Ohjoon Kwon and over 30 employees will visit Myeongryundang of Sungkyunkwan Munmyo (a Confucian shrine) and help repair and replace the Changhoji (traditional Korean paper made from mulberry bark for doors and windows).

POSCO hosts the “’2017 POSCO Global Volunteer Week” from May 24-30. This photo shows POSCO CEO Ohjoon Kwon and other employees volunteering during last year’s Global Volunteer Week.

Volunteer activities will also take place in the various countries where POSCO Group branches are located (China, Japan, Thailand, Vietnam, Indonesia, Mexico and Poland). Volunteer activities are customized for local communities and range from improving and repairing the welfare facilities in slum areas to cleaning up the environment and setting up cultural activities for disabled children.

Not only does POSCO ask its employees to help strengthen the community through the Global Volunteer Week, but it also contributes to the POSCO 1% Sharing Foundation to assist those in need.

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In addition to working as a sales engineer in Indonesia and Singapore for two years starting from 1993, Lee was also in charge of establishing technology strategies for automotive steel sheets as well as producing Tailor Welded Blanks (TWB) at the Gwangyang steel mill. Already equipped with knowledge of cold rolled steel products and automotive steel plates, Lee was able to build two manufacturing centers in Mexico, POSCO-MPPC plant 1 and POSCO-MPPC plant 2. He made big contributions in stabilizing the plants during their early stages while working as the Director of Production for CGL (Continuous Galvanizing Line) 1 and 2 in Mexico, which was POSCO’s very first overseas construction.

Lee, who has successfully completed the construction of Thailand CGL last May, said, “I would like to compete in the Southeast Asian market with our unique POSCO style.” POSCO Today had a chance to speak with Lee directly and hear about his goal of creating the best CGL in Southeast Asia, specifically through taking full advantage of POSCO employees’ work capabilities.

What is the background behind the construction of Thailand CGL and what are some of its expected outcomes in the future?

Thailand has not only positioned itself as the base for the automotive industry in Southeast Asia, but it is also known as the center of the manufacturing for products like home appliances. Speaking of the automotive industry, Japanese automobile companies, which entered the Thai market during the 1960s, currently occupy over 90% of the total automobile production, and these companies all share a demand to receive material supplies from local suppliers. In order to meet such needs and to expand the market further, Japanese steel companies, such as NSSMC and JFE, have entered the Thai market and have been operating CGLs since 2013.

POSCO, which provides around 150,000~200,000 tons of galvanized steel sheets to Thailand every year, has also entered the Thai market in order to provide stable supplies for its existing clients and to further expand the market. This will be accomplished through fulfilling localization needs for the material supply and demand of the Southeast Asian clients, and responding proactively to the recently heightening commerce regulations.

Moreover, with the launch of the AEC (ASEAN Economic Community) last December, it is expected that POSCO will be able to provide an extended supply of its high-quality plating materials to even intra-regional countries such as Vietnam, Indonesia and Malaysia.

What differentiates POSCO’s technologies and products from those of Japanese and other international companies?

Although NSSMC and JFE have been operating CGLs since 2013, they are still facing some quality issues. This is not because Japanese steel companies fall behind in terms of their technology, but because of their lack of global experience and inadequate ability in operating overseas production corporations.

POSCO, however, is currently implementing systematic technology support at a favorable time, based on the CGL operation know-hows learned from previous CGL locations, such as Mexico, Indonesia and China. POSCO is also working to standardize operation methods in more detail for employees. Although POSCO may not have been able to get a head start in terms of operating CGLs, the future for POSCO is looking bright from facility and quality aspects.

Tell us about POSCO’s unique marketing strategy in the Southeast Asian market, including Thailand.

Thailand CGL was established in order to stably produce automotive steel sheets and to provide highly competent materials to regional clients. Prior to providing automotive steel sheets, however, a quality certification from each automobile company is required, which usually takes about 1.5~2 years.

Therefore, until quality certification is acquired, POSCO plans on creating profit and expanding its contract base through differentiating the quality of GI products for home appliances and painting, areas in which our competitors are having a hard time producing for.

There is also a number of small local automobile companies in Thailand. These companies do not have an established material buying channel, and they cannot even attempt to establish a relationship with a large steel company like POSCO due to their outdated technology. POSCO, therefore, plans to provide manufacturing technologies, such as mold technology, and automotive steel sheet buying channels for these small local companies through Thailand CGL, which will also allow POSCO to expand its contract base based on a solution marketing system.

What is your plan in terms of creating a synergy with local employees?

No one should be treated differently, no matter where you are from. By all means, standards for employee management should not differ by one’s country or region of origin.

If you are respectful and considerate of others – local employees, that is – synergy among the employees will be maximized regardless of their nationality or region of origin. As long as every employee works with a strong sense of vocation for working at the best steelmaking company, the outcome is going to be successful. For better performance, problems faced among people should be resolved through humane respect and care, while their working styles should resemble that of POSCO’s.

Lastly, what is the ultimate goal of Thailand CGL? And, do you have any final words?

Thailand CGL must compete in the same industry, serve the same clients and compete with the same galvanized steel sheet products as the Japanese steel companies, which are known as the world’s best within the industry.

Every employee at Thailand CGL will be devoted to securing a comparative advantage in advance in all aspects, including quality, facility and corporation operation, and be able to write a POSCO success story in Thailand.

POSCO continues to strive to maintain its role as a leader in the steel industry, integrating into the Southeast Asian market seamlessly through producing premium products for the automotive industry while utilizing their global expertise. Lee is determined to make Thailand CGL a success, and he believes that with the help of POSCO’s dedicated employees and the company’s competitive edge over other major steel producers, this goal can soon become a reality.

POSCO Holds Completion Ceremony for Thailand CGL, Southeast Asia’s First Automotive Steel Sheet Plant

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The annual POSCO Global Volunteer Week was established to not only give back to local communities, but also to reinforce the corporate value of being socially involved.

POSCO has held the GVW around the end of May every year since 2010, commemorating the date of when the POSCO Volunteering Group was initially founded.

Volunteering Activities Utilizing POSCO’s Business Nature of Steel

This year, approximately 84,000 POSCO Group employees have volunteered to help people across the world by making the best use of their expertise.

Employees in Pohang, Gwangyang and Seoul are carrying out activities such as replacing wheelchair batteries for people with disabilities, establishing safe road environments for children, upgrading electrical facilities for senior citizens living alone and planting wildflowers to create a more cheerful environment.

On May 31, CEO Ohjoon Kwon and approximately 40 employees will visit a rehabilitation center for people with disabilities located near the POSCO Center in Seoul. There, they will build a steel garden, paint fences and assemble steel furniture.

The charity week is also simultaneously being held by POSCO branches overseas. With volunteer work tailored to the needs of their local areas, employees in China, Indonesia and Mexico are all taking initiative to benefit their communities. Volunteer activities include distributing basic necessities to local residents, providing rust removal services, painting bridges and installing plumbing systems in welfare centers.

POSCO, through its seventh annual Global Volunteer Week, seeks to actively spread its corporate culture of sharing and communicating with local communities worldwide.

POSCO-MPPC (President Kim Kwang-bok) is an automotive flat steel processing center in Mexico. It opened its first plant in Huejotzingo, Puebla, in 2006. Since then, it has contributed much to the exponential growth of the automotive industry in central Mexico by offering steel processing services.

In order to provide prompter services to customers in northern Mexico, the company opened its second plant in Villa de Reyes, San Luis Potosí, in 2008. Subsequently, its third plant began operations in Celaya, Guanajuato, in 2013. With the three plants under its control, POSCO-MPPC is expected to play a greater role in POSCO Group’s global supply chain.

The combined processing capability of the company is 450,000 tons a year. It endeavors to meet the rapidly-growing demands of customers in the local automotive industry, which have recently been accelerated by a number of free-trade agreements with more than 40 nations.

In just nine years, it achieved an accumulated sales of 2 million tons, based on the steady growth of its production capability and the commitment of approximately 350 employees. Last year, the annual sales of the company surpassed 400,000 tons.

Another key factor behind its success is its aggressive search for new business opportunities. Since 2013, it has focused on developing new clients and expanding its market shares in non-automotive sectors, such as construction and machinery.

POSCO-MPPC has provided steel products to global carmakers including GM, Ford and Chrysler. Last year, it became the only recipient of GM’s Supplier Quality Excellence Award in the steel industry.

These remarkable achievements that span the past nine years would not have been possible without the dedication and commitment of the company’s employees. In addition to strengthening existing business relationships, they are working hard to cut down production costs and provide high-quality products and services.

In recognition of its efforts to increase profits through diversification, POSCO-MPPC has recently been selected as an Excellent Overseas Affiliate of POSCO. The award ceremony took place on March 25.

POSCO-MPPC is seeking to be a major steel supplier by continuing to contribute to the growth of Mexico’s economic development. To this end, it will deliver quality- and service-oriented total solution services across various fields including the automotive, electronics and construction industries.

As the number of vehicles Mexico produces annually is predicted to increase 54 percent from last year’s level to nearly 5 million in 2022 (according to IHS Automotive), the company will also make continuous efforts to meet the demands of the quickly growing local automotive industry.

POSCO-America TSC (Technical Service Center) is strengthening its technical services and solution-based marketing support for its US and Mexican clients. The company opened last year with two offices in Mexico City, the capital and largest city in Mexico; and Birmingham, Alabama. Past January, it opened one more place of business in Houston, Texas. Based in these three cities, POSCO-America TSC is engaging in technical services and EVI (Early Vendor Involvement) activities for its clients in North and Central America, in which automotive and energy steel products are in high demand. Mexico is a global automotive industry hub. World’s top-notch automakers such as Nissan, GM and Volkswagen have active business operations in the country.

POSCO-America TSC Mexico City is currently focusing on automotive industry, providing technical services while working hard to develop new clients. It is also pursuing a certificate in automotive steel products. In an effort to increase the sales of steel products produced by POSCO and its local sales unit, POSCO-Mexico, the company is exchanging information with local processing centers and distribution corporations. POSCO-America TSC is scheduled to open a new business operation in Detroit, Michigan, within this year. Many global automobile manufacturers have headquarters and R&D centers in the city. Once it is opened, the Detroit office will dedicate itself to providing technical services for car companies in North America, as POSCO-America TSC Birmingham does.

Houston along with Scotland’s Aberdeen are two of the global energy industry hubs.  Located in Houston are companies from various sectors of the energy industry, such as Exxon Mobil, Shell, EPC (Engineering, Procurement & Construction) corporations and equipment fabricators. For this reason, POSCO-America TSC Houston is striving to get information about new business opportunities, by engaging closely with its key clients. As a result of all these efforts, POSCO-America TSC successfully signed a contract to supply GI (galvanized steel) products to a major US truck maker. Upon hearing that the GI materials the truck maker had been supplied were often flawed, POSCO-America TSC proposed a solution, in an effort to win trust from the company (and it worked perfectly!). The employees of POSCO-America TSC Mexico City demonstrate a high level of satisfaction with their everyday lives, due much to mild climate and friendly locals.

In addition, they take a great pride in representing POSCO’s automotive and energy steel business in the country with great growth potential. Living up to the motto, ‘POSCO the Great’, all the employees of POSCO-America TSC will enhance its efforts to provide its clients with upgraded technical services and solution-based marketing support. In addition to pursuing a certificate in automotive steel products, POSCO-America TSC will seek to strengthen partnership with key clients through more frequent contact with them. The company also plans to form a consultative group with local manufacturers, to improve the quality of its products.