1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

With the emergence of the 4th industrial revolution as a hot topic of the world economy, AI is expected to drive manufacturing innovation by providing breakthroughs in smart factories.

POSCO Smart factory in Gwangyang

In his recent POSCO Issue Report, Kim Ho-In, a senior researcher at POSRI, examined what innovations AI can bring to the upgrowth of smart factories, and identified key issues related to such technological introductions.

Smart Factory Takes Wing with AI

Kim looked at how AI will provide breakthroughs in areas of manufacturing, such as preventive system maintenance, process control, expert process control and robot automation, and how AI  will make smart factories more efficient, less wasteful and more productive.

Traditional stock, inventory and statistical analysis provided insufficient information for preventing factory defaults, and made certain failures inevitable. With AI, however, factories can predict quality deficiency, gather and analyze complex data and improve equipment reliability. Also, by integrating such intelligence with robots, there are now self-learning, versatile beings that can automatically overhaul and optimize system defaults.

Thus the ability to self-teach, analyze and create will lead to a more comprehensive statistical analysis and achieve positive results in preventive maintenance.

The Right Kind of Smart

The different innovative tools in smart factories, however, may have distinct values depending on its application for the industry in question, so while such technological advances may be a breakthrough for manufacturing, companies must apply the tools that are most effective for their field and industry.

AI that can self-teach, analyze and create in a smart factory

For instance, the technology required for “smartization” is entirely different for assembly process industries such as parts production, automotive and electronics, than from mechanisms industries such as metals, chemicals and energy.

In the assembly process industries, customizing production, cutting labor costs and responding to the fast life cycle of products are the major areas for innovation. AI applications like robot automation can guarantee positive results because many production processes can be replaced with robots, resulting in minimized labor costs.

In the process equipment industries, however, improving productivity through optimal control of core processes, controlling the linkage between processes and maintaining the facility are the major issues. The loss of data can be extremely critical in the case of a core facility failure, so preventive equipment maintenance would have a greater impact than robot automation.

The investment size and outcome value for implementation and innovation of smart factories will differ by industry. Thus it is necessary to build up strategies on technologies that are most suitable for each required field.

Smart Reconstruction

Recently, the world’s fifth largest blast furnace located in Pohang Works, went through major renovations to “go smart”. The Pohang Blast Furnace No.3 was first fired up in 1978 with an internal volume of 3795㎥, and was repaired in 1989, 2006 and finally in 2017, when it leaped toward POSCO’s vision of “smartization”.

After a 102-day repair period, the furnace volume expanded to 5600㎥, and the site is now fully equipped with AI to precisely monitor the condition of the blast furnace.

The Blast Furnace No.3 dismantled at the start of the repairing process

Engineers, including Gi Wan Son, Blast Furnace No.3 Repair Quality PJT team leader, worked on all three renovations and provided exceptional knowledge based on more than 40 years of experience with the Blast Furnace No.3. According to Son, the main focus was to build a smart technology infrastructure that utilizes AI and collects big data.

POSCO added smart sensors that automatically monitor the internal state of the blast furnace such as raw material quality and ventilator status. Both measures are expected to help forecast and extend the lifespan of the blast furnace to longer than the average period of 15 years.

[clickToTweet tweet=”POSCO Blast Furnace No.3 will lead the future of  blast furnaces for another 50 years if we incorporate POSCO’s advanced technologies” – Gi Wan Son, Blast Furnace No.3 Repair Quality PJT team leader” quote=”POSCO Blast Furnace No.3 will lead the future of  blast furnaces for another 50 years if we incorporate POSCO’s advanced technologies” – Gi Wan Son, Blast Furnace No.3 Repair Quality PJT team leader” theme=”style6″]

Though in its early stages, AI has already had a significant impact on smart factories and further innovations are expected. The manufacturing industry needs to pay close attention to the future scope of AI development and how it will allow them to overcome existing challenges and open doors to a limitless future.

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POSCO has been recognized as the leading company among the world’s top steelmakers for the past eight consecutive years. To note, POSCO received this year’s honor in the midst of difficult domestic and overseas market conditions due to last year’s global oversupply, tighter import regulations triggered by the spread of protectionism and internal financial restructuring.

The Steel Survival Strategies held discussions on current trends and future strategies of the global steel industry before the WSD announced the honor. Thirty-seven steel companies around the world were evaluated on 23 different criteria such as production scale, profitability, technological innovation, price competitiveness, cost reduction, financial soundness and raw material acquisition.  

POSCO has topped the list a total of 13 times since 2002, when WSD first began its global competitiveness rankings, putting POSCO at the top of the rankings for the longest period of time.

POSCO came out on top with a perfect 10 in five categories: technological innovation, cost reduction, labor skills, restructuring and investment environment, putting the overall score at 8.31 points. The total was 0.26 points higher than last year, due to positive evaluations of POSCO’s solutions marketing activities, the expansion of high-value-added products as well as its financial restructuring.

Other notable companies on the list include Russian steelmaker Severstal (second place) for iron ore and coal mines, US steelmaker Nucor (third place) for their technological innovation and profitability, NLMK steelmaker (fourth place) for their iron ore, and NSSMC (fifth place) with positive evaluations in business diversification and restructuring.

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Take a look back at the 8 biggest stories from The Steel Wire in 2016.

1. World’s Most Competitive Steelmaker for the 7th Consecutive Year

POSCO was once again named the world’s most competitive steelmaker for the 7th consecutive year by World Steel Dynamics (WSD). In addition, POSCO became the only steel company in the world to be simultaneously listed on both the Global 100 Most Sustainable Corporations in the World and the Dow Jones Sustainability Index (DJSI).

2. POSCO Earns More than KRW 1 Trillion in Profits and Improved Credit Ratings

For the first time in four years, POSCO’s consolidated quarterly operating profits exceeded KRW 1 trillion. POSCO also saw significant improvements in the overseas subsidiaries as operating profits for Mexico’s CGL, Vietnam’s cold-rolling factory, and India’s POSCO Maharashtra shot up considerably last year. In addition, CEO Ohjoon Kwon’s corporate restructuring initiatives helped pave the way for improved credit ratings.

3. POSCO Expands with Thailand CGL and other Overseas Endeavors

Thailand CGL (Continuous Galvanizing Line), Southeast Asia’s first automotive steel sheet plant was completed in August 2016. In addition, POSCO expanded its overseas presence by signing agreements with Iranian steelmaker PKP to construct a FINEX-CEM integrated steel mill capable of producing 1.6 million tons a year.

4. Taejoon Park’s Induction into the Korean Business Hall of Fame

POSCO’s honorary chairman, Taejoon Park, was inducted into the Korean Business Hall of Fame. He was recognized for transforming Yeongil Bay in Pohang from what was considered a wasteland into a steel mill that produces more than 21 million tons per year.

5. POSCO Strengthens its Foundations with its Unique Innovation Model

POSCO’s unique innovation program, QSS+, part of POSCO’s POSTIM, celebrated its 10^th anniversary. Compared to previous years, the number of ideas suggested by employees tripled, and six smart factory pilot activities were also promoted. A ‘special compensation system’ was also implemented to award outstanding IP projects.

6. A Culture of Shared Growth is Set into Motion through “Human Solutions”

In 2016, POSCO’s advanced Solution Marketing and World Premium Products reached new heights. At the 2016 POSCO Global EVI Forum, customers heard from experts and industry leaders about POSCO’s unique approach to building proactive steel solutions for its customers. And in 2016, sales of World Premium Products reached a record high and accounted for 48.1% of POSCO’s total sales.

7. POSCO Completes its 4^th-generation Synchrotron Radiation Facility

POSCO completed its 4th-generation synchrotron radiation facility in September, the third of its kind in the world after America and Japan. With the accelerator, researchers can capture movements as brief as a femtosecond (1/1,000,000,000,000,000 of a second). POSCO has high hopes for the accelerator to play a role in future pharmaceutical research & development, biotechnology, clean energy, IT, new material technology, and semiconductors.

8. A Fresh Start as POSCO Daewoo

Daewoo International, incorporated by POSCO Group in 2010, announced its new name, POSCO DAEWOO, as a step towards establishing itself as a leading global trade company. Soon after, POSCO Daewoo signed agreements with a gas-fired powerplant in Myanmar, an Indonesia state-owned shipyard, the Ministry of the Interior of Peru, and the Brazilian navy.

The recognition ceremony was hosted by the Korean Academic Society of Business Administration and Maeil Business News on October 18 at the Shilla Hotel in Seoul. It took place as a tribute to the distinguished services rendered by various enterprises and entrepreneurs that served as the driving force behind Korea, helping the country become one of the top 10 economic powers of the world.

In the enterprise category, the elected companies included: Samsung Electronics, CJ Cheil Jedang, Amore Pacific, SK Telecom, LG Chem, Hyundai Motor Company as well as POSCO. People who were inducted into the entrepreneur category included: Taejoon Park (the honorary chairman of POSCO), Inhoe Koo, Kunhee Lee, Byungchul Lee, Mongkoo Chung, Juyung Chung and Jonghyun Choi. Among the inductees, Taejoon Park is the only member who is not an enterprise owner-manager, making his achievement a unique and remarkable one.

At a time when POSCO lacked experience and technological means, Park, armed only with the conviction that “Steel is the rice of industry, and that we must make the country rich by making cheap quality steel,” erected the integrated steel mill at Yeongil bay of Pohang, which was a wasteland at the time. Living up to his motto of “I shall dedicate my short life to the eternal fatherland,” he transformed POSCO into a steel mill in 1992 that produced 21 million tons a year. Just 25 years later, he created a stable steel supply system.

Thanks to POSCO, steel-consuming industries such as the automobile, shipbuilding and construction industries, secured superior quality and cost competitiveness to become the leading enterprises of today. One story often told in Korea in industry circles involves the Chinese Community leader Deng Xiaoping. He visited the Nippon Steel Corporation in Japan in 1978 and asked the company’s chairman Yoshihiro Inayama to build a steel plant in China similar to POSCO’s. In response, the Nippon Steel chairman told Deng that “it won’t do you any good unless China has a manager as good as Taejoon Park to run it.”

This anecdote gives us an idea of Taejoon Park’s success story and his reputation as an indomitable driving force. Through his vision and dedication, the honorary chairman spearheaded POSCO’s transformation into the world’s most competitive steelmaker, and laid the foundation for Korea to become a powerhouse in the heavy and chemical industries.

POSCO and its honorary chairman Taejoon Park were elected into the ‘Korean Business Hall of Fame in the entrepreneur and enterprise categories at a ceremony held on October18 at the Shilla Hotel in Seoul. From the left, Changjo You (chairman of the Korean Academic Society of Business Administration), Daehwan Jang (chairman of Maekyung Media Group), Taehee Woo (vice minister of Trade, Commerce & Energy) and Eunyeong Hwang (the CEO of POSCO) can be seen posing for a picture at the ceremony.

“It was the entrepreneurship and can-do spirit of the founders, including the honorary chairman Taejoon Park, that made POSCO the most competitive steelmaker in the world,” said Professor Jinbae Kim of Korea University, who presented POSCO at the ceremony that day. “I sincerely hope that POSCO employees will do their best to enable the company to maintain its status as the best steelmaker in the world by taking in this spirit of entrepreneurship and engraving it in their DNA.”

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1. Announcing ‘Innovation POSCO 2.0’: Accelerating Business Restructuring
In July, POSCO announced “Innovation POSCO 2.0,” which included five major management reform plans and focused on restoring public trust and securing core competitiveness for the next 50 years. After the announcement, POSCO resolved to overcome crises by holding a briefing on management reform plans and a resolution meeting. POSCO also implemented large-scale company restructuring in August to improved organizational efficiency. Meanwhile, CEO Ohjoon Kwon and executives took the lead in overcoming the management crisis by giving up part of their salaries and repurchasing treasury stocks.

2. POSCO Sold 38 Percent Stake in POSCO E&C to PIF in Saudi Arabia
POSCO sold a 38 percent stake in POSCO E&C to Saudi Arabia’s Public Investment Fund (PIF) in exchange for the sales amount of 1.24 trillion won on September 30. The PIF investment is expected to bring positive improvement to POSCO in its financial structure, and the PIF can rapidly respond to the post-oil era in Saudi Arabia. POSCO E&C and PIF opened a joint operation, POSCO E&C Saudi Arabia (PECSA) in Saudi Arabia on December 21.
Related Article: POSCO Strengthens Business Alliance

3. Extension of Retirement Age to 60 and Introduction of Salary Peak System
POSCO extended the retirement age from 58 to 60, and introduced a 4–year salary peak system. Starting next year, the retirement age will be extended to 60, and according to the salary peak system, employees aged 56 will receive 90 percent of the amount they are paid at the age of 55. The salary will be reduced by 10 percent over the next two years. They will receive 80 percent at the age of 57, and 70 percent from the age of 58 through to 60. POSCO initiated salary peak system in 2011 and reached an agreement with labor on major labor innovation issues, such as the expansion of the salary peak system and a salary system restructuring based on performance.

4. POSCO Named World’s Most Competitive Steelmaker for Six Consecutive Years
POSCO was named the world’s most competitive steelmaker for the sixth consecutive year. The WSD (World Steel Dynamics) ranked 36 steelmakers from around the world by analyzing 23 categories, including production capacity, profitability and technology innovation. POSCO ranked at the top of the world-class steelmaker list, receiving the highest score in four categories, and an average of 7.91 points out of 10. POSCO received positive responses in its sales expansion of World Premium products and solutions marketing, proving POSCO is the world’s best steelmaker.
Related Article: POSCO Named World’s Most Competitive Steelmaker for 6th Consecutive Year

5. POSCO Exports Its Own CEM Technology Abroad for the First Time                                                                                                                                        POSCO signed an agreement on POSCO’s own compact endless casting and rolling mill (CEM) technology licensing and co-marketing with German engineering group, SMS on July 3. CEM is an innovative technology which produces hot rolled coils by integrating continuous casting and rolling process into one. According to the licensing agreement, POSCO will be paid a technology transfer fee from the SMS group, and engage in co-marketing efforts with SMS group for the sale of CEM technology.

6. Visible Progress in Solutions Marketing, Including EOLAB Project
The EOLAB Project, which succeeded in creating new demands by offering technologies for steel materials for car body and chassis, was selected as the best case of POSCO’s solutions marketing. The EOLAB Project is the result of POSCO’s constant effort to improve customer value by providing total solutions, from the development of new steel materials to the manufacturing of components. POSCO has been focusing on expanding its sales channel of World Premium products and improving customer value through human.
Related Article: Renault’s EOLAB Shines at 2015 Seoul Motor Show

7. Introducing ‘POSCO Masters,’ the Highest Honor Awarded to On-Site Engineers
POSCO selected its first POSCO Masters, who are equipped with professional knowledge, and have been leading on-site creative improvement activities and technical competitiveness. Beginning this year, the honorary recipients of the first POSCO Masters are Master Son Byoung-rak, EIC Technology Department at Pohang Works, Master Jo Gil-dong, Steelmaking Department at Gwangyang Works, Master Kwon Yung-kug, Hot Rolling Department at Pohang Works and Master Cho Young-ki, Ironmaking Department at Gwangyang Works. The four POSCO Masters will receive special benefits including treasury stocks, prize money, overseas couple trips and special promotions.

8. Making POSCO an Accident-Free Workplace through Self-Directed Safety Spread
POSCO set 2015 as the starting year for the settlement of its self-directed safety culture and has been striving for the realization of POSCO the Great through the expansion of safety Self-Directed Safety Spread (SSS) activities. POSCO held its “POSCO Family Safety SSS Festival” in January, and awarded prizes to excellent groups and individuals in August. POSCO takes the lead in making POSCO an accident-free workplace through constant safety SSS activities.

9. The 1st and 2nd Special Reward for Innovation POSCO Project
POSCO selected Construction Steel Materials Solution Project Team as the first recipient of Innovation POSCO (IP) Project’s special reward on July 23, awarding 150 million won of incentives for their achievement of excess profit. The IP Project special reward is given to the IP project team in proportion to the outcome, when achieving over 1 billion won of extra profit and the second special reward was awarded to PJT for the construction of a high profit PO-expanded production system in December.
Related Article: Innovation POSCO Grand Project Kick-Off

10. Cessation of POSCO Weekly, Smartization of Communication
POSCO Weekly, a weekly newspaper which delivered POSCO’s latest news and its development and innovation internally and externally for the past 21 years, ceased its publication on July 30. POSCO Today is serving the role of POSCO Weekly, creating POSCO’s unique communication culture, and delivering real-time news of POSCO to its employees. In line with the increased use of internet and mobile devices, POSCO Today is solidifying its position as a group-integrated communication channel, accommodating various needs of POSCO group employees.

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The announcement distinguished POSCO as the world’s top steelmaker for the eighth consecutive time in six years. 

The WSD evaluated 36 steelmakers from all corners of the globe in 23 categories including production capacity, profitability, technological innovation, cost competitiveness, cost savings, financial stability, and procurement, as of June 2015.

As a result of focusing on the enhancement of core corporate competitiveness by growing the sales of high value-added premium products and solution marketing founded on technology, POSCO acquired an average of 7.91 points, with a maximum score of 10 points in technological innovation, putting the Korean steelmaker at the No.1 spot. 

According to the WSD’s rankings, following POSCO was the second-ranking American mini-mill steelmaker Nucor Corp., having reaped the benefits of the shale gas developments that coincide with the recent recovery of the steel market in industrialized nations. Nippon Steel and Sumitomo Metal of Japan ranked third, demonstrating rising sales related to increased export competitiveness under the Abenomics policies. Brazil’s Gerdau came in fourth, followed by Severstal of Russia. Hyundai Steel of Korea ranked ninth for the second consecutive year. 

During the Steel Success Strategies forum, which was held under the theme “Just the Beginning,” it was forecasted by the WSD that the global steel industry would continue at its current slow pace for some time after assessing the short-term market conditions from 2015 to 2017. On the bright side, the organization noted that the global steel industry should recover some momentum and see improvements in the raw materials market from 2017. This, of course, is uplifting news as POSCO continues to move forward.

Top 10 Rankings of World-Class Competitive Steelmakers 

1 POSCO (Korea) 7.91 
2 Nucor (U.S.A.) 7.55 
3 Nippon Steel & Sumitomo Metal (Japan) 7.49 
4 Gerdau (Brazil) 7.34 
5 Severstal (Russia) 7.31 
6 JSW Steel (India) 7.20 
7 NLMK (Russia) 7.14 
8 JFE(Japan) 7.104
9 Hyundai 7.05
10 Erdemir 7.03

POSCO TJ Park Foundation

Named after POSCO founder Tae-Joon Park, the POSCO TJ Park Foundation (Website Link) was established in 2005 as a non-profit organization to make extensive and systematic social contributions. The Foundation runs four core programs: POSCO TJ Park Prize to award outstanding persons in the fields of science, education, and community development & philanthropy; regional contribution programs to participate in the local community and to nurture talents who will contribute to society; POSCO Asia Fellowship for mutual understanding and communication between Asian countries; and TJ Park Science Fellowship to support young and talented basic scientists in Korea. Through these core programs, the Foundation strives to carry out the social responsibilities of POSCO and contribute to its sustainable management.

Let’s have a closer look into the core programs managed by POSCO TJ Park Foundation:

The Core Programs of the POSCO TJ Park Foundation

#1. TJ Park Science Fellowship: Awarding Outstanding Achievements in Science

The TJ Park Science Fellowship selects and supports talented scientists who study and research in a university or institution in Korea, not abroad, to allow them to grow into scientists of global standard. This Fellowship is designed to help young scientists, including graduates of doctoral studies, post-doctoral researchers, and young assistant professors in the fields of mathematics, physics, chemistry, and Biological sciences so that they can focus on their research in Korea with stability and a sense of pride.

#2. Regional Contribution Programs: Nurturing Future Talents

POSCO Rising Star Scholarship

This Scholarship is awarded to high school students in Pohang and Gwangyang where POSCO is located. The purpose of the Scholarship is to practice the corporate philosophy of POSCO to participate in the local community and to nurture talents who will contribute to society.

POSCO Vision Scholarship

This Scholarship is awarded to young students in poor circumstances in Pohang and Gwangyang, where POSCO is located, with the aim to help them focus on their studies with the right attitude and thereby grow into outstanding members of society.

#3. POSCO TJ Park Prize: Honoring Philanthropic Social Contributions

The POSCO TJ Park Prize was established to honor the achievements of POSCO’s Honorary Chairman, Tae-Joon Park, and to promote the company’s efforts to respect creativity, nurture talent, and practice philanthropy – the driving forces behind the company’s success – with the hope that this will encourage the public to make even greater contributions to social progress in the future. The Prize is given in three fields: science, education, and community development & philanthropy to individuals and/or organizations that are selected through a fair, transparent, and strict selection process. The prize presentation ceremony is held every year, where a medal and prize money of KRW 200 million (approximately USD 170,000) is awarded to each laureate. Through the POSCO TJ Park Prize, the Foundation hopes to arouse the drive for research and the pride of the nation’s science & technology sector, contribute to grounding an exemplary image of an educator, and awaken a sense of value in fulfilling the spirit of community development & philanthropy.

#4. POSCO Asia Fellowship: Encouraging Collaboration and Exchange in Asia

One of the key enterprises of the Foundation, the POSCO Asia Fellowship provides scholarships, facilitates academic research, and publishes literary works with the aim to enhance mutual understanding and collaborative exchanges between Asian countries. The objectives are nurturing prospective young talents and encouraging exchanges and collaboration between intellectuals in Asia. Through such efforts, the Foundation aims to contribute to the mutual prosperity of Asian countries as well as the building of a network of talents.

[box] Programs and Scholarships Available within POSCO Asia Fellowship

Scholarship for Asian Students Studying in Korea

This Scholarship supports the prospective leaders of Asia by providing full tuition and living expenses to young talents from Asian countries as they enroll in master’s or doctoral programs at some of the most prestigious Korean universities or institutions and experience the Korean society and culture.

Asia Regional Expert Nurturing Program

This Program is designed to nurture Korean experts of the Asian region by supporting their education abroad so that they can acquire a sound understanding of the language, history, and culture of various Asian countries and establish a solid foundation for further studies and research endeavors. The Program will enable Korean experts to lead the regional studies on Asia and ultimately contribute to the development of the Asian region.

Scholarship for Prestigious Asian Universities

The Foundation is building cooperative relations with prestigious universities in Asia and awarding scholarships to the excellent Asian students at those universities in order to boost their academic achievements.

Asia Research Grant Program & POSCO Asia Conference

This Program aims to support the intellectuals of Asian countries, including scholars, professors, and researchers, as they conduct in-depth research on the cultural and social fields regarding Asia. The POSCO Asia Conference is an international convention where Asian scholars share the results of their research conducted for 1~2 years with the support of the Foundation and establish academic networks.

Publication of the Literary Journal ASIA

The quarterly literary journal ASIA is published to help Asian writers and artists pursue their creative activities and to improve exchanges and networks between countries in Asia through the literary endeavors of intellectuals and literary persons.

◈ To learn more about the eligibility and scope of support for each scholarship/program, click here[/box]

The POSCO TJ Park Foundation is dedicated to further expanding Asia’s academic and cultural networks, nurturing young leaders who will open up a brighter future for the region, and sharing with its neighbors in need. By standing tall as a foundation that establishes POSCO as a respected and loved company by the people and that serves the nation, we will be at the forefront of the efforts to make the world a more abundant and warmer place.

POSCO was recently named by WSD as the world’s most competitive steelmaker for the seventh time in a row during the past five years. Apart from receiving credit for technological innovation and human resource management, POSCO has also been making continuous socio-economic and environmental efforts side by side with its stakeholders to create value and bolster mutual growth. The recently published 11^th annual sustainability report sums up these efforts. Let’s have a closer look.

About the 2013 Sustainability Report

[Download the 2013 Sustainability Report HERE]

First, the Report includes both financial and non-financial data.

POSCO and listed subsidiaries within the POSCO Family*, or those having more than KRW 1 trillion in sales are included in the consolidated ESG(environment, society, governing structure) data, which was verified by Samil PricewaterhouseCoopers.

Second, we report ‘Key Issues’ which have high ranks in the materiality test.

The report also includes specific information on the issues selected from the materiality test in order to include detailed information that the stakeholders want to know.

Third, we gathered the opinions of internal and external stakeholders and reflected them in the materiality test before publishing this Report.

Previously, there were some difficulties in reflecting stakeholders’ opinions because they were gathered in the course of preparing the Report. For this Report, however, we listened to stakeholders’ opinions from the planning stage and linked them to the materiality analysis process.

Fourth, we reported the cases of CSV (Creating Shared Value), ‘a management principle that seeks opportunity for business in solving social problems’.

We marked CSV cases separately within the contents describing POSCO’s management activities, including building a Saemaul Village in Ethiopia, training agricultural leaders in Mongolia, the Benefit Sharing Program, and Techno Partnership.

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Note: 2013 Sustainability Report further references

Reporting approach
The 2013 Report is based on the GRI (Global Reporting Initiatives) G4 guideline, ISO 26000, UN Global Compact, and POSCO’s unique report publishing process. The financial information reporting standards and definitions are based on the K-IFRS (Korean International Financial Reporting Standards.

Period of reporting
POSCO publishes the report annually. This Report contains information from January 1st, 2013 to December 31st, 2013. In some instances information up to April 2014 were included. The corporate governance section is based on the decisions made by the Board of Directors at the meeting held on March 14, 2014.

Scope of reporting
The Report contains the sustainability activities and performances of Pohang Steelworks, Gwangyang Steelworks, Pohang headquarters and the Seoul office. The ESG (Environment, society, governing structure) data covers POSCO and nine POSCO subsidiaries that are listed in the stock exchange or have more than KRW 1 trillion in sales. Information on shareholders, investors, and new green growth businesses cover the whole POSCO subsidiary.

Independent assurance
Assurance on this Report was conducted by Samil PwC, an independent assurance institution, in order to assure stakeholders on the credibility of the major data and publishing process of the Report. Assurance was conducted in accordance with ISAE3000 and AA1000AS Type II.

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POSCO 2013 Highlights

Why don’t we take a look at what efforts POSCO made during the year 2013, and their results?

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1. POSCO WINS THE ‘WORLD’S MOST COMPETITIVE STEELMAKER’ AWARD FOR 4 CONSECUTIVE YEARS!

On February 1, POSCO was named “The World’s Most Competitive Steelmaker” for the fourth time in a row. This was the result of the evaluation conducted by WSD (World Steel Dynamics) on 34 of the world’s steelmakers in 23 categories including production capacity, profitability, and technology innovation. POSCO had held the top position from 2002 through 2004, then was surpassed by Russian and Indian steelmakers, but regained top spot again in 2010 after 6 years, and has hence remained no.1 for 4 consecutive years.

2. POSCO RENOVATES WORLD’S BIGGEST FURNACE AT GWANGYANG STEELWORKS!

On June 7, after 108 days of repair works, POSCO held the blow-in ceremony for Gwangyang Steelworks’ No.1 blast furnace that was renovated as the world’s largest blast furnace. After its third enhancement made in 2013, Furnace 1’s volume now reaches 6,000 bigger than the previously world’s largest furnace (5,800) built by Shagang Group in China. The Gwangyang blast furnace applies a new cooling system, a production technology involving oxygen enrichment, and reduces fuel consumption by using high-temperature reducing gas efficiently, achieving a cost effective and environmentally friendly process.

3. DAEWOO INTERNATIONAL STARTS PRODUCTION AT MYANMAR GAS FIELD

On June 22, Daewoo International successfully began production at the Mya gas field, located in the northeastern sea of Myanmar. The Myanmar gas field project came in full swing when Daewoo International signed a PSC with the Myanmar Government. The gas produced was passed through the subsea pipeline, subsea production facility, and the production platform to check the gas production and treatment facility, and began selling to CNPC, a Chinese state-owned petroleum company from the gas selling location in Kyauk Phyu, west of Myanmar, since July 2013!

4. DECLARATION OF THE NEW ETHICAL MANAGEMENT PRINCIPLES

Celebrating the 10th anniversary of the proclamation of POSCO’s Code of Conducts, POSCO held a declaration ceremony for the New Ethical Management principle. The new principle, dubbed “Happiness Management” presents the vision “Let’s Come Together to Build a Better World!” and its 3 core values – future, common good, and win-win.

5. POSCO INCLUDED IN THE SUSTAINABILITY INDEX FOR NINE CONSECUTIVE YEARS!

For the first time in the steel industry, POSCO was included in the Sustainability Index by SAM-Dow Jones as a leading company for 9 consecutive years! In the 2013 evaluation, 31 steelmakers were evaluated, and POSCO received 77 points – 3 points higher than the previous year – and was selected as an outstanding company for the 9th consecutive year.

6. FIRST EXPORT OF FINEX TECHNOLOGY

On September 22, POSCO signed an MOA with state-owned Chongqing Iron and Steel Company, to construct a FINEX integrated steel plant. POSCO and Chongqing will each invest 50% in the joint project to build the FINEX integrated steel plant with an annual capacity of 3 million tons.

7. 1% FOUNDATION INAUGURATED!

POSCO’s 1% Foundation was officially inaugurated on November 18. The 1% Foundation was first started in October 2011, where executives and management-level personnel donated 1% of their salaries. POSCO and 26 POSCO Family companies participate in the campaign. The Foundation will implement sharing campaigns using the KRW 4 billion’s worth fund raised through donations during 2013 and the company’s matching grant.

8. INTEGRATED STEEL PLANT IN INDONESIA BEGINS OPERATION

On December 23, POSCO held the blowing-in ceremony for the 3 million tons/year blast furnace in Cilegon, Indonesia. Krakatau POSCO is expected to produce 1.8 million tons of slab and 1.2 million tons of thick plates annually. Krakatau POSCO will secure the domestic sales network which can fetch higher prices than exporting the products, and plans to sell 1.5 million tons of slab and 600 thousand tons of thick plates in the Indonesian market during 2014.

POSCO’s vision is to become a company “loved by the people and admired by the world.” As CEO Ohjoon Kwon promised in his foreword to this report, POSCO will fulfill its duties and obligations as a corporate citizen. As a company built upon the very wishes and aspirations of the nation, POSCO will remember that it is forever in debt to the people and act accordingly. From the endeavors in preserving biodiversity to sharing with those in need through the 1% foundation, POSCO’s corporate philosophy will always be about the betterment of humanity.Thank you.

POSCO named most competitive in Global steel information provider WSD’s assessment of 36 steelmakers around the world

POSCO has been named the world’s most competitive steelmaker for the 7th consecutive time during the past five years.

Global steel information service provider World Steel Dynamics (WSD) announced the World-Class Steelmaker Rankings during the 29^th Steel Success Strategies (SSS) forum on Tuesday, June 17 New York Time.

POSCO earned high points in technological innovation and human resource management

WSD gave the top mark of 7.91 points out of 10 to POSCO. It said POSCO received highest points in four segments, including technological innovation and human resource management.

As of June 2014, WSD made an assessment of 36 steelmakers around the world in 23 categories including production size, profitability, technological innovation, cost competitiveness, cost saving, financial stability, and procurement.

WSD gave credit for POSCO’s improvement on its core steel competitiveness

WSD also gave credit for POSCO’s effort to bolster stable growth and improve core corporate competitiveness by increasing sales of value-added high-end products and engaging in technology-based solution marketing. The company got higher points compared to the previous year on technological innovation, value-added rolled steel production and doing more to bolster downstream steel-related industries.

Following second was American mini-mill steelmaker Nucor Corp. which has enjoyed shale gas development privileges along with a recent recovery in the steel industry among developed nations. Japanese steelmakers NSSMC and JFE followed third and eighth with sales rising due to increased export competitiveness under Abenomics.

Meanwhile SAIL and Jindal, Indian companies that were among the top 10 last year, failed to remain in the list this year. Instead, Hyundai Steel, which secured 24 million tons for production, ranked ninth to join the top 10.