On February 6, the center manager of POSCO-CDPC, Tae-hyun Cho (eighth from the left), received the Excellent Supplier Award from DPCA.

During the award ceremony, 14 excellent suppliers were selected in the fields of distribution, parts, design, electrical and electronic systems. Among the selected companies, POSCO-CDPC is the only processing company that handles raw steel materials.

The DPCA Chengdu production base has an annual production capacity of 360,000 vehicles, and started operation in September 2016. POSCO-CDPC’s No. 2 plant moved into DPCA’s facilities to supply entire orders of blanking processing at the end of 2014. POSCO-CDPC was selected as an Excellent Supplier based on its product quality, delivery and service over the years of the companies’ partnership.

POSCO-CDPC produces and supplies products for 39 different parts in total, including exterior steel used for DPCA’s main SUV models, 4008, 5008 and Tianyi. In the future, POSCO-CDPC hopes to capitalize on its geographical advantages and maximize processing quality and service capabilities to ensure a stable and consistent order base.  

Cover photo courtesy of Autocar.

Textron Aviation 3D-Printed Engine

With the rise of new technologies, innovative ideas in the aviation industry are taking off in an effort to streamline manufacturing processes and improve the aircraft performance. In 2016, Textron Aviation unveiled its new 10-person business aircraft, the Cessna Denali, powered by a propeller engine that consists of 3D-printed titanium and steel components.

The Cessna Denali’s propeller engine that consists of 3D-printed titanium and steel components (Source: Textron Aviation)

The engine, which was developed by GE and Textron Aviation after a decade of research and development, features the benefits of a private jet but at an entry-level price. Engineers were able to reduce 855 separate parts down to just 12 components and also reduced the number of steps to make the engine.

There are numerous benefits that come with this 3D-printed engine. As 3D-printed parts and materials weigh significantly less than traditional parts, airline manufacturers can benefit from fuel-efficiency gains. The engine can burn up to 20 percent less fuel and achieve 10 percent more power compared to other engines of the same class. Also, the engine eliminates the risk of losses and leakage as the 3D-printed parts have no joints. A test flight is planned to take place in early 2018.

Virgin Atlantic Green Jet Fuel

As major contributors of carbon emissions, more and more airlines are choosing to go cleaner and greener. In partnership with LanzaTech, Virgin Atlantic has derived 1,500 gallons of low carbon jet fuel from waste industrial gases from steel mills. The carbon used to make the fuel, Lanzanol, is made from ethanol, which is captured through a fermentation process during steel production.

Virgin Atlantic’s Jet fuel made out of waste gases from steel mills (Source: Virgin Atlantic)

This innovative low carbon fuel project is expected to reduce the aviation industry’s reliance on oil. According to LanzaTech, the process could be retrofitted to 65 percent of the world’s steel mills, producing 30 billion gallons of ethanol worldwide. It will ultimately cut emissions by 65 percent compared to using standard petroleum-based fuel.

Dr Jennifer Holmgren, chief executive of LanzaTech, said “We can now truly imagine a world where a steel mill can not only produce the steel for the components of the plane but also recycle its gases to produce the fuel that powers the aircraft.”

Other airlines are also turning to greener solutions. While Airbus is collaborating with Siemens to introduce a range of hybrid passenger planes, Boeing is working with NASA to curb emissions through slimmed down aircraft wings.

Thanks to these innovative aviation projects taking off, commercial jets are becoming greener and more technologically advanced. If engineers can make 3D-printed parts to lightweight an engine and use waste from steel mills to fuel planes, one can only wonder what forthcoming innovations will further empower the aviation industry.

POSCO CEO Ohjoon Kwon (left) shakes hands with Tom Schuessler, president of ExxonMobil Upstream Research Company, at the signing ceremony between ExxonMobil and POSCO.

ExxonMobil, the world’s largest oil company, upholds strict standards when choosing materials, and for the last five years has been working with POSCO to manufacture and test slurry pipes at worksites. Last year, a 1.2 m long slurry pipe – made with POSCO’s high manganese steel – was installed at ExxonMobil’s Kearl Oil Sands Project in Canada. It demonstrated a resistance to wear five times higher than conventional materials.

With its abrasion-resistant properties, POSCO’s high manganese steel can greatly reduce overall operating costs and increase oil production. “Seamless collaboration has led to the quick commercialization of this new high manganese steel technology, which will set a new standard for oil sands mining operations,” said Tom Schuessler, president of the ExxonMobil Upstream Research Company, who attended the ceremony.

POSCO and ExxonMobil employees pose for a commemorative photo shoot after inking a high manganese steel supply contract at the POSCO Center.

In response to president Schuessler, CEO Kwon suggested furthering their partnership by utilizing high manganese steel in various other businesses within the oil sands industry.

POSCO also plans to use its high manganese steel in the making of heavy construction and bulletproof military equipment as well as steel pipes and facilities to move various minerals including oil sand slurry.

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CEO Kwon of POSCO greets Chairman & CEO Jeffrey Immelt of GE to discuss ways to integrate GE’s smart factory solutions into POSCO’s steel and non-steel factories

In late February, Kwon made trips to Germany and the US to visit Siemens and GE factories. He met with executives to discuss best practices and share thoughts on potential collaborations. At that time, Kwon and Immelt were not able to meet so they took advantage of Immelt’s time in Korea for a face-to-face meeting.

Kwon and Immelt discussed different ways that smart technologies could be incorporated into POSCO’s steel and non-steel factories. By combining GE’s strength in equipment manufacturing and POSCO’s expertise in the steel industry they hope to create more advanced smart industrial solutions. POSCO, in particular, was looking to introduce smart features to their material, energy, and construction businesses through this partnership.

Executives from POSCO, including CEO Ohjoon Kwon, discuss smart factory solutions with GE Chairman & CEO Jeffrey Immelt

After meeting with Immelt, Kwon left for Indonesia to attend the Korea-Indonesia Economic Development Forum in Jakarta. Kwon also visited PT Krakatau POSCO, located in Cilegon, and encouraged field employees to continue their hard work to strengthen their competitiveness in the region.

PT Krakatau POSCO is POSCO’s first overseas integrated steel mill and is capable of producing a total capacity of 3 million tons. Since 2013, it has cut down on operating losses and increased its competitiveness through innovative cost-reduction activities and new technology integration.

Last year, the overseas steel business division’s operating profit reached KRW 218.2 billion, up by KRW 648.1 billion from 2015. This is a result of increased sales of high-margin products and intentional efforts to cut costs.

POSCO plans to focus on strengthening its financial structure by increasing the sales of its World Premium Products. Through this effort, they hope to continuously expand their presence in overseas steelmaking while optimizing the process of locally sourcing product materials.

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PT Krakatau POSCO held a meeting with export firms on February 9. Attendees strengthened their relationships as partners and exchanged ideas on POSCO’s sales strategies and goals.

PT Krakatau POSCO recognized the three trading companies with the highest performance in 2016. These three companies included Samsung C&T Co., Hyosung (Europe), and ThyssenKrupp (Brazil). Samsung C&T Co. was recognized for achieving the highest number of sales (88,000 tons, which accounts for 17%), while Hyosung and ThyssenKrupp were recognized for pioneering new markets. Awards were handed out to Yong-soo Kim, a senior managing director at Samsung C&T, Wolfgang Schnittker, CEO of ThyssenKrupp, and representatives from Hyosung. “We want to thank PT Krakatau POSCO for holding this event and hope to continue building our partnership for continued success,” said a representative from Samsung C&T.

Executives from three trading companies accept prizes for recording strong sales or developing new markets in 2016. From left to right: Kyung-joon Min, head of PT Krakatau POSCO; Frederik Bremsteller, a senior manager at ThyssenKrupp; Yong-soo Kim, a managing director at Samsung C &T; Bon-seok Koo, a manager at Hyosung; and Si-young Choi, head of PT Krakatau POSCO Headquarters.

During the main portion of the event, participants discussed marketing strategies to expand the sales of World Premium Products (WPP), countermeasures for common issues, and sales strategies. In addition, with its eye on overcoming recently strengthened protectionist policies, PT Krakatau POSCO also discussed ways to improve its own brand management, which included a regional sales quota management plan with further emphasis on indicating the place of origin on its products. PT Krakatau POSCO is steadily ramping up sales by implementing strategies to promote high-end products (such as WPP).

Kyung-joon Min, head of PT Krakatau POSCO, delivers his opening speech before kicking off the event.

PT Krakatau POSCO is in its fourth year of operation since beginning its full-scale sales activities in 2014. The steel mill has sold 7.7 million tons of products, including a total of 2.3 million tons of steel plates in Southeast Asia. Its cumulative exports of steel plates amounted to 290,000 tons in 2014, 445,000 tons in 2015, and 510,000 tons in 2016 due to aggressive new customer acquisition and local market development activities. The company has also connected with 307 new buyers in 23 countries including Southeast Asia, Europe, and Brazil.

In the future, PT Krakatau POSCO plans to continue developing partnerships with trading companies and to make efforts to strengthen its position and competitiveness as Southeast Asia’s first integrated steel mill and as a leading steel plate maker for the region.

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The bottom of the Gram 15-inch – made with POSCO’s ‘E-Form’ magnesium alloy sheet

In 2015, POSCO developed the ‘E-Form’ magnesium alloy, which significantly increases magnesium’s ability to be molded at room temperature (magnesium is known to have poor forming ability at low temperatures). The alloy was applied to the bottom of the Gram 14-inch and 15-inch.

Instead of stopping with the ‘E-Form’ alloy, POSCO continued to make further improvements and rolled out its ‘E-Form Plus’ alloy which demonstrated improved formability. LG Electronics incorporated the use of the alloy into the 13, 14, and 15-inch Gram in 2017, further solidifying their partnership.

The 2017 version of Gram features a battery life of up to 24 hours, a 40% larger cooling fan against heat, a backlit keyboard for enhanced ease of use and dual-channel memory slots for more convenient memory upgrading. In addition to these improvements, the 2017 Gram laptops recorded a lower or equivalent weight compared to the existing models [940g (13.3-inch model), 970g (14.0-inch model) and 1,090g (15.6-inch model)]. The Gram 15-inch won the 2016 iF Design Awards’ Gold Award and a Red Dot Design prize, and was also named the world’s lightest 15.6-inch laptop in the Guinness World Records.

The 2017 LG “All Day Gram” (courtesy of LG Electronics’ official blog)

The growth of the entire laptop market is slowing down due to the emergence of smartphones and tablets but ultra-light and slim laptops are enjoying growth at a rate of 15% to 20%, respectively, each year. According to market research firm, Juniper Research, when Intel announced its ultra-light laptop concept in 2011, shipments of ultra-light laptops throughout the world amounted to only 3.7 million units in 2011; but in 2016, they soared to 178 million units. And in 2017, ultra-light laptops are expected to account for 42.7% of the entire laptop market.

By steadily developing customized materials and processing solutions for its customers, POSCO is working to position magnesium alloy sheets as a valuable material for a variety of mobile products.

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Advancements in electric cars, autonomous driving, car connectivity, and AI were on full display. Nissan and BMW unveiled plans to use Microsoft’s personal assistant technology, Cortana, with their cars. Honda became the first major manufacturer to develop an electric concept car specifically designed for ride-sharing. And as for self-driving cars – Nissan announced it would bring autonomous driving support to its Leaf electric car, Hyundai introduced one that would be affordable enough for the masses, and Audi announced a partnership with Nvidia to bring self-driving cars to market by 2020.

With all of the focus on electric cars and autonomous driving, it is easy to forget the basic building blocks that are needed to make these cars a reality. As Toyota Research Institute CEO Gill Pratt noted at CES, “Historically humans have zero tolerance of death by machine,” and for further adoption by the public, safety must be reinforced in autonomous vehicles. Increased safety in cars often goes hand-in-hand with heavier materials that can withstand more pressure. However, the push for more fuel efficient electric cars is pushing the industry to build with more lightweight components.

Car manufacturers are working to find the right balance between strength, weight, and price. The EPA has estimated that reducing a vehicle’s weight by 45kg (100lbs) will improve fuel efficiency by 1%, and while more lightweight materials do exist in aluminum and magnesium, they are often too cost-prohibitive for general use.

POSCO Body Concept Electric Vehicle

POSCO’s PBC-EV is both safe and lightweight

On this front, POSCO has been working to develop solutions for car manufacturers. The PBC-EV, or POSCO Body Concept Electric Vehicle, is one product of that research as POSCO sought to create a lighter car with the same strength and safety that is expected in today’s modern car market. POSCO focused on two main points when developing this lightweight car body. The first was the application of a combination of POSCO’s most advanced steels including TRIP, PosMCT950E, and PosMCT980B. Secondly, POSCO optimized existing construction methods and worked to introduce new techniques in order to both lighten and strengthen the body of the automobile. With its PBC-EV, POSCO was able to reduce weight by 26% while still maintaining the highest levels of body strength.

Magnesium technology

POSCO materials were used in the design of Renault’s EOLAB concept car

Many in the auto industry are setting their sights on magnesium as the future of car manufacturing. Magnesium can be easily molded and it is both lightweight and strong. Due to its high price, car makers have not fully embraced the move to magnesium yet, but POSCO is already preparing for this probability. Last month, POSCO’s World Premium Materials (WPM) – Magnesium Business Division organized a seminar with industry experts and automotive engineering students to discuss the future of magnesium in car manufacturing. Experts in magnesium, molding, bonding, and surface treatment were invited to speak about the application of magnesium technology in automobiles and students gave presentations on their own experience developing race cars.

Even though cars have been around since the late 19^th century, new ideas continue to force the industry to adapt and change. And whether it is optimizing existing manufacturing processes or working to utilize technologies for the future, POSCO remains committed to finding innovations in the auto industry.

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Building the ISS

Beginning in 1998, the ISS was constructed on ground piece-by-piece, then transported and assembled over the course of 12 years, 40 missions and 80 launches. With a partnership between European countries (represented as ESA), the United States (NASA), Japan (JAXA), Canada (CSA) and Russia (Roscosmos), the ISS has become the world’s largest international cooperative program in the fields of science and technology.

The concept of a space station had been imagined in several different ways prior to the actual ISS initiative. Stanley Kubrick and Arthur C. Clarke created a centrifugal, wheel-shaped space station in their science fiction classic, 2001: A Space Odyssey. The Star Trek series, originally created by Gene Roddenberry in 1969, also featured various renditions of what a futuristic space station might look like, including the sleek Vanguard Station.

However, given our current technological and astrophysical capabilities, the ISS was built with functionality and sturdiness as top priorities.

The ISS’s main compartments were completed in 2011, amassing a total weight of over 420,000 kilograms, and the station itself is approximately the size of a North American football field.

When constructing the ISS, engineers relied on materials like titanium, Kevlar, high-grade steel and lightweight aluminum to make the structure as light and puncture-resistant as possible.

“This shell must also provide protection from impacts by tiny meteoroids and man-made debris,” states NASA on their website. “To ensure the safety of the crew, the Space Station wears a bullet-proof vest. Layers of Kevlar, ceramic fabrics and other advanced materials form a blanket up to 10 centimeters thick around each module’s aluminum shell.”

With weight being a major factor in getting each component into orbit, the modules were built using more lightweight aluminum than steel for the outer shells so that the space shuttles could hold the weight of the units in their cargo bays during launches.

Steering the Space Station with Steel

The ISS orbit is prograde, meaning it moves in the direction of Earth’s rotation. For the ISS to soar in a path that covers 90 percent of Earth’s population, the Station flies at an inclination of 51.6 degrees, which is easier to maintain and requires less fuel.

Directional corrections are needed to maintain the proper trajectory path, and rely on Control Moment Gyroscopes to do so. Control Moment Gyroscopes (CMGs) consist of spinning rotors and motorized stabilizing mechanisms, called gimbals, that tilt in an angular momentum. This momentum causes the gyroscopic torque that rotates the spacecraft when necessary.

The ISS relies on four CMGs that each contain a 100-kilogram solid steel wheel to rotate the Space Station to keep it on course or to adjust positioning for incoming payloads.

Every Detail Matters

Imagine the ISS as a five-bedroom home floating somewhere between 370 and 460 kilometers above Earth with up to six full-time crewmembers on board at any given time.

Although the ISS required more than just wood and sheetrock to be built, details like plumbing had to be carefully engineered to ensure safety and sanitation throughout the laboratories and living quarters. A complex network of tubes, pipes and ducts between the station’s outer skin and inner walls had to be built so that water and other liquids could safely flow in the weightless environment of space.

“Like veins and arteries in the human body, the Station’s plumbing circulates vital liquids and gases that keep the crew and the ISS itself in good health,” NASA notes. “And this collective network of tubing and hardware, which is far more elaborate than that of the typical house must be compact, lightweight, corrosion-resistant, leak-resistant, microbe-resistant and highly dependable.”

To meet this extremely high standard, the pipes in the ISS are made from titanium, stainless steel or Teflon wrapped in metal mesh.

Planning for Future Explorations

The main purpose of the ISS is to conduct research and various studies to give us a better understanding of the environmental challenges of outer space. By knowing what to expect through long-term, human-based trials and biological experiments, the possibility of traveling further into space to places like Mars becomes a closer reality.

Just like the Space Station, these missions will require careful planning and vehicles that can withstand whatever space might throw their way. Materials like titanium, lightweight aluminum and high-grade steel will most likely be relied upon to enable such missions and transport brave astronauts to worlds yet explored.

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

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

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

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

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

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

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

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

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Today, POSCO global blog will try to explain the basics of electric vehicles.

Pictured here: POSCO exhibit set up at The 1^st International Electric Vehicle Expo held in Jeju

What is an Electric Vehicle?

An electric car is basically an automobile that is powered by electricity. It is powered by an electric motor that runs on a rechargeable battery as opposed to a gasoline engine. Electric vehicles has gained widespread recognition predominantly because it is the environmentally-friendly alternative to gas guzzling automobiles.

Why should you care about Electric Vehicles?

Pictured here: EV on display that promotes ‘zero emissions’

 You might have heard the word ‘electric car’ lately, but might not understand what the direct benefits are. The major reasons that electric cars is top-of-mind for the auto industry and society as whole are for the following reasons:

1)      Less pollution: Electric cars are an eco-friendly alternative to gasoline powered cars as they create less pollution

2)      Cost effective in the long-run: Electric cars run on electricity so you can save up on annual car fuel costs and expensive maintenance related to oil changes, fuel filters, etc.

3)      Reduces fuel dependency: Electric vehicles can be powered by electricity produced from multiple energy sources including wind, solar, hydro, nuclear, biofuel, and fossil fuel sources. Therefore, electric vehicles have the potential to support economies while also reducing dependence on imported oil.

4)      Better Sound Quality: Electric cars may be difficult to differentiate from regular cars from the outside, but electric motors provide quiet and very smooth operation.

Challenges for Electric Vehicles

That is not to say that electric vehicles face no challenges. Driving range is a concern for consumers as gasoline vehicles can go longer distances. Recharge time and overall bulk are concerns also. Companies, including POSCO, are continuously investing time and energy to improve technologies and materials for electric vehicles.

Pictured here: Entrance to 1^st International Electric Vehicle Expo in Jeju

During March 15 through 21, the 1^st International Electric Vehicle Expo was held in Jeju Island, south of the Korean peninsula. More than 40 companies attended the event and consumers were able to see firsthand electric cars including Kia’s Ray EV, Reno Samsung SM3 Z.E., Chevrolet Spark EV, Kia Soul EV and BMW i3. Nearly 50,000 visitors came to the expo where POSCO Group showcased its innovative electric car technology.

Pictured here: POSCO exhibit at 1^st International Electric Vehicle Expo in Jeju

Of the participating companies, POSCO was the only company to offer a total solution that addresses materials, rechargeable infra and service. POSCO was the first steelmaking company to develop a body for an electric vehicle concept, solidifying its position at the forefront of electric vehicles.

POSCO Group’s <Total Solution>

Pictured here: POSCO executives gathered at the Expo in Jeju

POSCO Group companies including POSCO ICT, POSCO ChemTech, POSCO TMC and POSCO ESM were all present for the expo. As the first steelmaker to create the concept body for electric vehicles, POSCO proved that its steel solutions continue to provide value for the future of electric vehicles. The exhibit was divided into three parts consisting of rechargeable infra needed by electric vehicles, service and materials.

POSCO ICT’s electric vehicle rechargeable infra solution can be applied to all types of vehicles. Moreover, users are able to recharge without having to carry an external cable.

Pictured here: Chevrolet electric vehicle on exhibit being recharged

In addition, in order to improve the user experience, POSCO is offering a variety of convenient services. POSCO ICT has set up charging infrastructure around Jeju so travelers do not need to worry about lack of electricity. Beginning this June, POSCO ICT will form a partnership with E-Mart·BMW to offer easier charging services anytime, anywhere. POSCO ICT will also be forming a partnership with Seoul car sharing services to provide rechargeable infra.

POSCO also highlighted its commitment towards Nd magnets. Nd magnet, which is made of a rare earth metal, is an integral part of electric vehicle motors. They are currently imported from Japan and China. The Nd magnets that POSCO supplies can be applied to domestic electric vehicles and can reduce the dependency on imports.

State-of-the-Art Technology for Future Electric Vehicles

Pictured here: Compact-sized electric vehicle

Compared to internal combustion engines, electric vehicles are still trailing behind in terms of mileage and battery weight. Therefore a variety of new technologies are being applied for lightweight car bodies. For this reason, new materials beyond the previous aluminum and steel are being introduced into the development of electric vehicles.

POSCO is the first steelmaker to develop steel that is optimized for electric vehicle bodies. PBC-EV (POSCO Body Concept-Electric Vehicle) is the car body that was developed to showcase the state-of-the-art technology POSCO has recently developed for future electric vehicles.

PBC-EV has set the standard for EV steel solutions. It is made from cutting-edge steel and the latest components technology for an integrated solution that has reduced weight of 26.4% compared to previous car bodies.

Pictured here: Regular-sized electric vehicle made by Renault Samsung Motors

The Future of Electric Vehicles

As companies continue to improve and build upon existing electric vehicle technologies, the growing prominence of electric vehicles is highly probable. As an environmentally-conscious company, POSCO hopes to see more growth in this field. Would you buy an electric vehicle?