Graphene is able to flow 100 times more current than copper at the speed 100 times faster than silicon at room temperature and its high thermal conductivity allows it to transfer heat 10 times better than copper and it’s 100 times stronger than steel.

It’s virtually transparent to light and also flexible enough to increase up to 20% of its area. Besides, electrical conductivity does not disappear even when fully folded. Graphene can be said to be a super-power material because it is thin, bends well and even light.

The problem is that this graphene material has not yet been produced in bulk. Graphene, which is called the ‘New material of dreams’ enough to win the Nobel Prize in Physics has not exceeded the threshold of mass production.

However, dreamers will not leave this charming material unattended. Global institutions are jumping into research and development for commercialization to take the lead by pioneering the market.

On March 31, POSCO also declared its participation in the journey to commercialize graphene technology along with domestic ventures, universities, research institutes, and communities.  POSCO, a very steel-oriented business company, is also keeping an eye on new materials in the future. An ambitious step has begun to lead the market by advancing the commercialization of graphene technology through the establishment of Pohang Graphene Valley, which was agreed with Graphene Square, Postech (Pohang University of Science), RIST (Pohang Institute of Industrial Science & Technology), and Pohang City.

l POSCO•Postech•RIST•PAL(Pohang Accelerator Laboratory)… Optimal infrastructure of Industry-Academic Cooperation

Graphene Valley was established in Pohang because, above all, excellent industrial, academic and research infrastructure were supported. Research infrastructure such as Postech of Basic Science, RIST for commercialization research, POSCO Technology Research Institute, and PAL(Pohang Accelerator Laboratory) are in place.

In addition, commitment of Pohang City and POSCO Group to cooperate and support to explore the future graphene-based market worked, and special love for Pohang of Seoul National University professor Byung-Hee Hong, who graduated from Postech and founded graphene square also played a part.

Let’s take a look at the roles of participating institutes in establishing Graphene Valley in Pohang.

First, the main part of Graphene Valley, Graphene Square Inc. Graphene Square has continuous Roll to Roll dry transfer of graphene*, which is the key of graphene mass production, and is now accelerating co commercialize its products. It plans to establish mass-production system and develop the application technology through Pohang Graphene Valley.

The next is POSCO. POSCO is cooperating with RIST’s process technology experts to support the construction of R2R(Roll to Roll) mass production facilities. It plans to use technology and know-how of the basic material, steel’s manufacturing process to build graphene R2R process.

Postech supports performance analysis of graphene-applied semiconductors, displays, and nano-convergence materials by utilizing advanced nano-infrastructure facilities such as Nano Convergence Technology Institute’s support equipment for technology commercialization, clean rooms and more. The technology secured in this process plans to support global preoccupation in the field of graphene application technology by promoting international standardization.

PAL plans to analyze the electronic structure of graphene by utilizing EUV (Extreme Ultraviolet) light sources of 4^th generation and secure reliability of application materials such as semiconductors.

On the other hand, Pohang City supports attraction of enterprises that need application technology and provides administrative expediency through the designation of Pohang Graphene special zone.

l How to apply a ‘high-tech cloak’, Graphene.

Graphene is called a ‘high-tech cloak’, that can add rigidity to existing materials and turn non-electric materials into conductors.

If mass production of graphene is carried out, it is expected that the application of materials will be endless, bringing a new paradigm to various industrial groups. Graphene can be applied to the national major industries, including displays that require great solidity, thermal conductivity, and electron movement, secondary batteries, solar power, and automotive lighting, as well as heat-resistant films and coating materials.

We hope that Pohang will become another mecca of material innovation by the successful operation of Pohang Graphene Valley.

Upon completion, the Green Iris will transport limestones from the port of Donghae in Gangwon-do to Gwangyang Works from the beginning of 2018.

POSCO’s high manganese steel allows the fuel tank to withstand temperatures as low as -196℃, so that it can store and transfer LNG. Moreover, it is highly weldable and cost-efficient compared to other common materials for LNG fuel tanks such as nickel steel or aluminum alloys.

POSCO developed the technology for its high manganese steel after 10 years of research since the late 2000s. Now, it is one of POSCO’s leading World Premium Products (WPP). Due to strengthening environmental regulations worldwide on emissions of sulfur oxides, nitrogen oxides and carbon dioxide from vessels, demand for high manganese steel for LNG tanks are expected to increase dramatically.

Cover photo courtesy of Gas Asia Summit.

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.

Since 2014, POSCO successfully completed 150 cases of restructuring.

Back in the 2000s, POSCO suffered its worst financial crisis due to failed investments in growing businesses. Its consolidated operating profit, which exceeded KRW 7 trillion at one time, recently fell to about KRW 2.5 trillion. POSCO’s cash on hand, which peaked at more than KRW 8 trillion, declined to nearly KRW 5 trillion, and credit ratings worsened as well.

That’s when CEO Kwon implemented the Innovation POSCO (IP) 1.0 and 2.0 projects successively to innovate the company’s financial structure and began broad-based restructuring. CEO Kwon recalls, “POSCO sold its non-core steel business, and merged similar businesses to increase efficiency and eliminate waste. We also liquidated low-yielding substandard businesses to prevent the aggravation of insolvency.”

As a result, the number of POSCO’s domestic affiliates decreased from 71 to 38, and the number of its overseas affiliates declined from 181 to 124. The company also recovered KRW 7 trillion over the 4-year period, and prevented annual losses of about KRW 400 billion.

Moreover, POSCO’s consolidated cash on hand increased to KRW 8.55 trillion at the end of the third quarter, repaid its debts by more than KRW 5 trillion and POSCO’s consolidated debt ratio dwindled to 67.6 percent, the lowest since 2010. Moody’s, an international credit rating agency, recently upgraded the forecast for POSCO’s issuer rating, Baa2, from negative to stable, and then to positive, and predicted that POSCO’s financial health will continue to improve in the next 1-2 years.

POSCO’s Future growth strategy is two-track: smartization and development of new growth engines.

CEO Kwon expressed his vision for the company In 2018 and beyond. He said, “POSCO plans to implement smartization with efforts such as combining ICT with its core businesses, ranging from steel and energy to construction and chemicals to develop newly converged businesses to lead the 4th Industrial Revolution.”

CEO Kwon delivering his new year’s message at the POSCO Family Kick-off Meeting 2018.

SEE ALSO: Building on a Year of Success: POSCO’s Top 9 News of 2017

The company will also accelerate the development of smart factories utilizing big data and artificial intelligence, and further enhance core processes for environmentally-friendly, highly-efficient and future-oriented steel mills.

In addition, CEO Kwon mentioned that POSCO will carry out new growth businesses this year in the energy and materials sectors. In the energy sector, POSCO will work to stabilize its power generation business, and expand its LNG midstream business by developing the Gwangyang LNG Terminal into the energy hub of Northeast Asia. POSCO is also planning to increase investments in renewable energy and seek business opportunities in line with government policies to reduce greenhouse gas emissions.

The company will also work to secure stable supplies of saline water and ores containing lithium in South America and Australia for its lithium business. It also plans to build accompanying infrastructure for mass production.

POSCO will also develop its own manufacturing processes for high-capacity cathode and anode materials used in secondary cells, and work to increase the sales of electric vehicles at home and abroad.

POSCO CEO Kwon Ohjoon greets employees after the kick-off meeting.

To close the event, CEO Kwon remarked, “For the next 50 years, let’s make greater efforts toward our goals with a clear and long-term perspective.”

In June, 12 participants completed a two-week introduction course, where they got to learn about POSCO’s history, Korean culture and POSCO’s overall operations. Then, they were dispatched to each respective department for hands-on work experience.

In addition, participants can also integrate Korean language courses with work. As a result, most participants have already taken their TOPIK, a Korean language certification test, and received their certifications.

To close off the six-month program, GMP participants took part in a workshop on December 7, at the POSCO Center to share their results and discuss ways to improve the GMP.

Pedro, one of the participants from POSCO-Mexico said, “This has been an invaluable experience and my. I have a greater understanding of POSCO’s operations thanks to the GMP, and I have gained a totally new perspective on business. I will highly recommend this program to my colleagues.”

POSCO is currently in the process of selecting 30 GMP participants for 2018, a sharp increase in the numbers of participants compared to 21 employees this year so that P-level employees can participate in the program. POSCO will continue to train exemplary employees and strengthen the competitiveness of overseas affiliates through the GMP system.

The Steelmaking Process

So, what does a blast furnace do in the steelmaking process? There are 4 main parts to the process of making steel, and in each process, the accompanying production equipment is as vital as the materials that make steel. Each batch of steel starts off with iron, molten iron to be exact, and the blast furnace is what transforms raw materials into molten iron.

Molten iron leaves through the bottom of a blast furnace

Molten iron comes from two raw materials; iron ore and coal. First, iron ore is converted into sinter ore in a sintering plant and coal is converted into raw coke using a coke oven. The processed materials are then poured into a blast furnace through the top opening. Hot air reaching 1200℃ is blown in from the bottom through tuyeres and chemically reacts with the materials as they fall to the bottom of the blast furnace. This process oxidizes the coke and reduces the sintered ore, creating molten iron. The molten iron is then further processed to make steel.

The Importance of the Blast Furnace

The Blast furnace is one of the oldest and most significant equipment in the steelmaking process. The average lifespan of a blast furnace is about 15 years before it needs to be replaced or refurbished.

The Pohang No.1 blast furnace

POSCO is a few months shy of its 50th anniversary, and the Pohang No.1 blast furnace has been in operation for 45 of those years. Interestingly, the blast furnace has never broken down or gone out of service. With an annual capacity of 1.3 million tons, it helped establish Korea as the top-5 steelmaker in the world and was even named Korea’s Economic National Treasure No.1.

A New Technology from an Old Furnace        

In the beginning of 2017, POSCO decided to shut down the Pohang No.1 blast furnace for good in response to the slowing steel market and put the national treasure in a museum instead. It seemed the oldest operating blast furnace in Korea would finally retire.

However, just before pulling the plug, engineers used the Pohang No.1 blast furnace in a pilot operation program using low-grade raw materials such as soft coke and low-cost iron ore to produce molten iron. To everyone’s astonishment, it succeeded, and with lower charter costs than the larger blast furnaces that have 3 times the production capacity.

As it turns out, because of its smaller size, the blast furnace can operate with low-grade raw materials such as soft coke and low-cost iron ore, and can flexibly adapt to fluctuations in operations. Employees further developed the technology and as a result, Pohang No.1 blast furnace recorded the lowest charter costs of all POSCO blast furnaces in April this year.

Thanks to the new-found technology, the legacy of the Pohang No.1 blast furnace will continue.

What’s the Secret to Longevity?

Usually, a blast furnace needs to be sprayed down every 6 months so that it does not get damaged from temperatures that can reach up to 2000℃. The bottom of the blast furnace is where the heat is concentrated, thus most susceptible to damage. Furthermore, fluctuations of the internal gas composition can lead to explosions. To solve this problem, POSCO’s technicians developed a technique to lower the coke to below the tuyere and repair the bottom of the blast furnace. This technology was applied to other furnaces and maintenance systems and is still in use today.

The Pohang No.1 blast furnace’s TFT during maintenance

To add, the Pohang No.1 blast furnace even has its own voluntary task force team (TFT) to care for and maintain the blast furnace called “Love for the blast furnace, love for POSCO.” The team of 15 not only makes sure the blast furnace is operating smoothly, they also continually research new technologies to prevent malfunctions and enhance the blast furnace.          

In a matter of months, the furnace went from almost becoming an artifact to a central part of POSCO’s competitiveness. This blast furnace’s long history in itself is impressive, but with its recent transformation, there is no telling what greater innovations and technology POSCO will achieve.

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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 CEO Kwon Ohjoon is seen firing up Pohang Blast Furnace No. 3 at the ceremony held on June 6 in Pohang, Korea

Renovations for the blast furnace began on February 24 when POSCO added automated monitoring technology to control the internal state of the blast furnace, a measure expected to help forecast and extend its lifespan. This led POSCO to develop an infrastructure that utilizes artificial intelligence and collect big data from early stages of operation, bringing it one step closer to becoming a “smart blast furnace.”  

Distinguished guests, including POSCO CEO Kwon Ohjoon, are seen powering on the blower switch in the operating room of Pohang Blast Furnace No. 3

In addition to incorporating smart technology, the internal volume of Pohang Blast Furnace No. 3 was expanded from 4350㎥ to 5600㎥, making it the 5th largest in the world, with a capacity to produce 15,000 tons of molten steel in a single day. POSCO now operates 5 of the 14 super-sized blast furnaces in the world, including the world’s largest Gwangyang Blast Furnace No. 1 (6000㎥), Pohang Blast Furnaces No. 3 and 4 (5600㎥) and Gwangyang Blast Furnaces No. 4 and 5 (5500㎥). The remaining blast furnaces are in Japan (four), China (three), Russia (one), and Germany (one).

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It all started 49 years ago in a small fishing village on the East coast of Korea and has grown to be the fourth-largest steel producer in the world.

A Small Fishing Village with 39 Employees

To help rebuild the country after the end of the Korean War, President Park Chung-hee made steel production and heavy industry the centerpiece of his Second Five Year Plan (1967-1971). Despite there being no steel industry in Korea, President Park wanted to be able to manufacture steel domestically without relying on imports and foreign technology.

Opening of POSCO in April 1968

In 1965, President Park visited Pittsburgh, PA, where he gained insight into the steel industry and what would be required if Korea were to develop its own independent production facilities. One year later, Korea International Steel Associates (KISA) was formed. KISA included a consortium of eight companies from five different countries whose goal was to help Korea start its own integrated steelmaking facility. By 1967, the government approved a plan from KISA that included a basic agreement on technology & funding.

Pohang, a small fishing village on Korea’s eastern coast, was chosen as the official site of the steel mill. POSCO was officially incorporated on April 1, 1968, as a joint public-private venture with just 39 employees. Park Tae-joon came on board to serve as CEO and by May 1968, construction of POSCO’s headquarters had begun.

In May 1968 the POSCO headquarters construction had begun

Setbacks to Success  

Despite the steps taken to move Korea’s steel industry forward, there were many setbacks along the way. First, overshadowing each step of its development was the skepticism coming from both foreign and domestic fronts. Foreign investors could not understand why Korea would expand into industries it had no history with. And local leaders doubted their ability to overcome all of the technological, economic, and infrastructural hurdles facing them. To make matters worse, KISA was disbanded in September 1969 – leaving plans for POSCO up in the air.

Korean President Park Chung-hee was instrumental in getting POSCO off of the ground. Here he is at one of the blast furnaces at Pohang Works. (1976)

Determined to complete the project, President Park began negotiations with Japan who later provided the grants, loans, and technology for the construction of the initial plant. Construction of the steel mill started in 1970 and on June 9, 1973, at 7:30 am, the first steel came off of the line. By April 1974, they had decided to expand the capacity of the third furnace at Pohang Words to 5.5 million tons and the fourth furnace capacity was increased to 8.5 million tons.

Expansion

Because of POSCO’s early successes, the Korean government decided to build a second facility on the peninsula’s southern coast in Gwangyang. After the completion of the fourth phase of construction at Gwangyang, POSCO had a total of 20.8 million tons of crude steel production capacity. Of that total, Pohang was producing 9.4 million tons with Gwangyang producing 11.4 million tons. It earned the distinction of being the world’s largest steel mill and POSCO become one of the main driving forces behind the industrialization of Korea’s economy.

After its completion, Gwangyang Works was the largest integrated steel mill in the world. (1992)

In 1986, POSCO entered into a 50/50 joint venture with US Steel (UPI). Their partnership was set to develop a comprehensive modernization program that would upgrade the processes and equipment of the facility. Since the establishment of USS-POSCO Industries (UPI), POSCO has continued to branch out all over the globe. It has set up STS production plants at Zhangjiagang Pohang Stainless Steel (China) and POSCO Tai Knox (Thailand), and automotive steel plate production lines (CGL) in Mexico, India, and China. PT Krakatau POSCO was built in 2013 and was the first integrated steel mill in Southeast Asia.

POSCO Becomes the Most Competitive Steelmaker in the World

By 2014, production capacity had increased to 37.7 million tons. Pohang now has three heavy plate mills, four cold rolling mills, five blast furnaces, heavy plate mills, and four hot rolling mills. Beyond its scope and production capacities, POSCO is committed to developing advanced, high-quality World Premium Products. In addition, POSCO’s innovations in other industries, integration of smart factory technologies into the production process, and its commitment to local communities continue to push POSCO forward.

Advanced World Premium Products

With a focus on advanced steel solutions, POSCO has developed a wide range of products that can be customized to fit a customer’s unique needs. These World Premium Products are the reason POSCO has been listed as the most competitive steelmaker for seven years in a row. For example, PosMAC has been utilized in many different ways from floating solar cells to durable public art pieces. Also, POSCO’s award winning PosCozy floor plates provide soundproofing and heat insulation.

The hot rolling process at Gwangyang produces 3,400,000 tons per year

Lithium Extraction & Other Ventures

POSCO has also strengthened its global competitiveness by accelerating new businesses in the materials and energy industries. POSCO has developed a fuel cell plant that was completed in 2008, a Myanmar gas field that produces 500 million cubic feet of gas each day, and lithium extraction technology that is 10 times faster than previous methods.

Solution Marketing

In addition to manufacturing advanced, high-quality steel, POSCO’s Solution Marketing provides customers with added technology solutions and commercial support. Instead of just supplying products and stepping away from the customer, POSCO works with its customers to create customized solutions that ensure successful implementation. Partnering with manufacturers early on in the production process, POSCO has stepped beyond its role as a steel supplier and now serves as a solutions provider.

Smart Factory Technology

POSCO also incorporates cutting edge technology and innovations into its production processes. At its automotive steel plate factory in Gwangyang, POSCO introduced AI technology into its coating weight control system, improving quality and reducing waste. Also, POSCO CEO Ohjoon Kwon remains committed to developing more smart factory solutions and has been meeting with executives of other companies, such as GE and Siemens, to explore partnerships and best practices.

President Park Chung-hee comes to POSCO to celebrate the opening of Pohang Works

Someone seeing the successes of POSCO today might have a hard time understanding how it even started, much less how it was able to overcome the immense barriers it faced. POSCO continues to be a leader in the steel industry with its advanced, high-quality World Premium Products. Also, POSCO’s successes in its non-steel ventures show its commitment to remaining on the cutting edge of technological trends and industrial innovation. Watch the video below to see for yourself.

https://www.youtube.com/watch?v=nq574Ivp7c0

POSCO’s overseas employees participate in POSCO’s Global Mobility Program that includes seminars on Solution Marketing, POSTIM, POSCO’s values & culture, and a chance to get hands-on experience at the steelworks.

This year, the training took place from March 6 to 17 with nine employees from the following affiliates:

• POSCO-CSPC (China)
• Qingdao Pohang Stainless Steel Co., Ltd. (China)
• Zhangjiagang Pohang Stainless Steel Co., Ltd. (China)
• PT.KP (Indonesia)
• POSCO-Vietnam
• POSCO-TBPC (Thailand)
• POSCO-ICPC (India)
• PT Krakatau POSCO
• POSCO America

GMP participants just completed their two-week training program last week, which included on-site training and seminars on POSCO’s values, culture, and working systems. For the first week, participants learned about POSCO’s history along with different aspects of Korean language and culture. During the second week, there was a lecture on the work phases of a steel mill and participants visited the steelworks for a fuller understanding of the steel production process.

This year, POSCO made more of an effort to include material that would help participants have a greater understanding of POSCO’s management policies, such as solution marketing and POSTIM.  Additionally, participants were able to share their own unique work experiences and learn more about how POSCO operates around the world.

Participants continued their training, working with different departments. These included the Human Resources & Labor Relations Group of Gwangyang Works, the Plate Rolling Department, the Automotive Flat Products Exports Group, and POSCO Group University.

Through the GMP, POSCO Group University hopes to steadily foster the growth of future management leaders and experts with POSCO’s innovative DNA. The second training will be conducted in June.

The Steel Wire recently sat down with three GMP participants from POSCO China. Read their interview and find out more about the program and how it will impact their work in China. 

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