‘Future Vision Declaration Ceremony’was held on April 1, the 50th anniversary of POSCO, POSCO CEO Ohjoon Kwon shared his philosophies of the centennial enterprises and the new mission and vision

On April 1st, the 50th anniversary of POSCO, named ‘Future Vision Ceremony’ was successfully held. The main topic of the anniversary was not only celebrating 50th years POSCO’s efforts both industrial and social fields but also suggestion of future directions of POSCO, ‘Missions and Visions’ 

‘Unlimit the limt: Steel and Beyond’

POSCO is dreaming of KRW 500 trillion in consolidated sales in 2068, the 100th anniversary of the company.

On the occasion of its 50th anniversary, POSCO held the ceremony to declare its future vision, and announced the mission and vision as a global centennial enterprise at the POSTECH gymnasium at the 50th anniversary of POSCO on April 1, and announced its mission and vision of being one of the true global centennial enterprises.

The new mission of the global centennial enterprise POSCO, which POSCO CEO Ohjoon Kwon detailed in the form of his TED Talk, is ‘Unlimit the Limit: Steel and Beyond.’ This mission, which was finalized after a few months of intensive debate among executives, means that POSCO will capitalize on its past 50-year history of challenges to become a power in the future not only in steel, but also in non-steel areas.

To this end, POSCO is seeking to change its current revenue streams, in which about 80% of the group’s profits come from steel and steel-related areas, in which profits will come evenly from the top three core business groups, i.e. steel, infrastructure and new growth engines, at a ratio of 4:4:2. POSCO aims to see its consolidated sales reach KRW 500 trillion and its operating profits reach KRW 70 trillion in 2068, its 100th anniversary.

In addition to its primary business, i.e. steel, POSCO will concentrate on such infrastructure areas as trading, construction, energy and ICT were included, and such new-growth areas as energy storage materials and light-weight materials.

The vision, which was declared along with the mission, is ‘POSCO the Great.’ ‘POSCO the Great’ was the slogan that CEO Kwon used when he was first inaugurated as CEO in 2014 to revive POSCO which faced a crisis at the time. Now the slogan has become more systematic: Great Business, Great Technology and Great Culture. It means pushing the business structure, technology and organizational culture to the highest level.

As POSCO has contributed to the country and society through steel and educational patriotism, at a time when the company is celebrating its 50th anniversary and starting its march forward toward a centennial enterprise, it decided to conduct business that will repay the country in addition to declaring its mission and vision.

POSCO supports Youth

In return for the country’s unsparing support and the citizens’ enthusiastic support which made POSCO what it is today, POSCO opted to construct the ‘Youth Creativity Center’ (tentative), which features various contents, including the Science and Experience Center in Seoul Forest, located in the center of the capital city of Korea, and donate it to the nation.

The ‘Youth Creativity Center’ will become a learning center where youths, who will lead the country into the future, can easily understand the principles of technology and science through experience, and translate their creative ideas into reality.

Also, the center will have various concert halls and exhibition halls so that anyone can easily enjoy culture and art in everyday life.

If the international design competition for world-renowned architects is held this year, it will reveal its splendor as being the best science and culture complex in Korea.

The POSCO Center in Seoul, which was erected more than 20 years ago, now features a new product exhibition hall that will familiarize citizens with steel, and show customers the future vision of steel, and added a 30-seat PR video center. The product exhibition hall displays various industries demanding steel in the future, and state-of-the-art steel products, and allows visitors to experience the various uses of steel used in our everyday lives using the cartoon and touch technique in a fun way. At the PR video center, visitors can watch POSCO PR videos, and view a steel mill in 3D imagery.

Close to people 

On its 50th anniversary, POSCO, which has contributed to the growth of the country with steel, will air a TV ad, which reflects its will to transcend beyond steel, ‘50-Year Challenge and 100-Years New Dream’ until June 10, and the POSCO Art Museum in the first lower level of the POSCO Center will host the ‘Homage to POSCO’ exhibition until May 8. The artworks embodying the growth and rebirth of POSCO will be on display. Also, the POSCO Museum in Pohang will host the ‘Half-Century Video Records of POSCO,’ which introduces various images and historical materials which recorded its 50-year history of growth, until June 30.

In addition, until the end of May, POSCO will prepare an opportunity for the CEO and employees to communicate and harmonize with one another in Seoul, Pohang and Gwangyang with the aim of strengthening the solidarity among employees marching toward a centennial enterprise.

POSCO always stands with country 

POSCO’s 50-year history is in true sync with the history of the growth of the Korean economy. POSCO has never stopped growing for half a century since its foundation, and continued to turn profits without ever running into the red and still contributes to the economic development of the country.

POSCO was established in 1968, and molten metal was first produced in 1973. Its sales amounted to KRW 41.6 billion in that year, and increased 686 times last year to KRW 28,553.8 billion. Korea’s per capita GDP was merely US$ 198 in 1968, but it increased about 140 times in 2016 to US$ 27,539.

As POSCO grew and its steel production increased, domestic industries such as automobiles and shipbuilding continuously grew as well. In 1973, when POSCO started to produce molten metal for the first time, POSCO’s steel production amounted to 449,000 tons, but in 2017, it rose to 37.2 million tons. Likewise, Korea’s shipbuilding tonnage increased from 12,000 tons in 1973 to 23.5 million tons, and automobile production rose from 25,000 cars to 4.11 million cars.

POSCO has also grown remarkably in terms of technology. The FINEX technology, which replaces the modern blast furnace with more than 100 years of history, is an environmentally-friendly and economical innovative technology. POSCO independently developed and commercialized this. Also, in 2013, the company completed the construction of Southeast Asia’s first integrated steel mill in Indonesia. Just 40 years after POSCO owned the first integrated steel mill with the help of Japanese steelmakers in 1970, it grew so big as to build an integrated steel mill in a foreign country on its own, and transformed itself from a technological follower to a technological leader.

Also, POSCO sold 9 million-odd tons of automotive steel last year, which accounts for about 25% of its total sales, the largest proportion among major global automotive steelmakers and sellers. One out of every 10 cars sold in the world is made of POSCO’s automotive steel.

Smarter POSCO 

Recently, the company built its own smart factory platform called PosFrame, leading the smartization of the global steel industry.

In recognition of its excellent business performance, competitiveness and sustainability management, POSCO has been selected by WSD as one of the ‘world’s most competitive steelmakers’ for the past 8 consecutive years since 2010, and in the global sustainability management evaluation, it has been selected as an excellent company in sustainability and as the best company in the steel industry for the past 13 consecutive years, dating back to 2005. It has remained in this honorable position for the longest time in Korea.

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.