More drivers are making the switch from gas to electricity to fuel their cars. (Source: The Korea Bizwire)

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Why don’t more people drive EVs?

Electric vehicles (EVs) have a variety of benefits for drivers, the most obvious being cheaper electricity prices compared to gas. Not only that, EVs only have about a third of the parts of ICE vehicles, which results in maintenance-cost reductions by about 60 percent. There are also government subsidies that support EV manufacturers and consumers in numerous countries, and environmental regulations only look to strengthen. Despite all this, drivers have been slow to make the switch to EVs, and there are 3 critical reasons why.

1. Range

Today, EVs can travel about 200 to 400 miles on a single charge, and while this may be sufficient for most urban drivers, it’s still not enough coverage to relieve drivers of range anxiety. Low-capacity batteries are not the only problem – the weight of the car and the efficiency of the motor and converter also affect range. Put simply, even if a battery could hold more energy, it won’t result in increased range if the car is too heavy or the motor is inefficient and uses up too much energy. Automakers have to come up with comprehensive solutions to improve the battery capacity and motor efficiency as well as lightweight their vehicles.

Drivers are often wary of their EVs running out of juice where there are no charging stations. (Source: Sandman YouTube Channel)

2. Charging Time

EVs currently take up to several hours to fully charge, depending on the battery. Although there have been advancements in charging systems that allow for shorter charging times, the average charging duration cannot compete with the 3 to 5 minutes people spend at gas stations.

3. Charging Stations

Despite the technological leaps made in the development of EVs, charging infrastructure has not maintained the same pace. Gas stations outnumber charging stations in every country, and it will take time to figure out a model to commercialize charging stations and make the business more profitable.

Charging stations have not yet been commercialized as gas stations have. (Source: Coinfeeds)

Why EVs are still driving toward a bright future

Although there are still challenges to overcome, one of the greatest drivers of widespread EV adoption is national policy. A growing number of countries have declared they will limit or even ban ICE cars altogether by 2020. Policies are already in place to support a more environmentally sustainable auto industry, and companies are working hard to navigate and capitalize on the changing market environment.

This will bring about a wealth of new opportunities for related industries. That’s why automotive, materials, electronics and chemical companies around the world are investing heavily in technology to preempt this market, and first movers will gain a tremendous advantage.

POSCO is one of the companies looking to lead the global EV materials market and has been investing in and developing innovative solutions for EV manufacturers. POSCO has designed an ultra-lightweight yet strong chassis and developed the necessary parts to bring it to life. POSCO is also currently working with auto manufacturers, giving them access to POSCO’s EV chassis design expertise as well as its newly-developed materials.

POSCO has designed an ideal chassis for electric vehicles. (Source: News Tomato)

In addition, POSCO works closely with each of its affiliates including POSCO Daewoo, ICT, ESM and ComTech that are highly specialized in their respective fields. In cooperation with its affiliates, customers and academia, POSCO is in the process of developing innovative technologies for batteries, electric motors and charging infrastructure. As such, the EV sector has become a core business area for POSCO.  

Everything from the EV chassis and battery to the motor and charging infrastructure is codependent. Therefore, in order to develop an advanced EV that meets the needs of consumers, an integrated approach is vital. POSCO is in prime position to work with all of its affiliates under One POSCO and gear toward a future of cars running on electric motors.

Cover photo courtesy of The Wellingtonian.

Yangon Hotel has a five-star rating and is near Inya Lake in Yangon, the economic heart of Myanmar. Its total area is 104,123㎡, which includes a 15-story luxury hotel (343 rooms), and a 29-story residence hotel (315 rooms). Also on the grounds are various facilities including a convention center, restaurants and a swimming pool.

POSCO Daewoo supervised the whole process from bidding to development and operations. It also manages overall hotel business operations as the project supervisor, and Lotte Hotel is in charge of hotel management under the name “Lotte Hotel Yangon.”

POSCO Daewoo acquired the right to use the land for the hotel site from the Myanmar government back in 2012. Then in 2014, POSCO Daewoo established a consortium with POSCO E&C as the constructor, Lotte Hotel as the hotel operator, Mirae Asset Daewoo as the investor and a local partner. Together they founded a local operating corporation called Daewoo Amara and carried out operations for the hotel under its name.

POSCO Daewoo is the first foreign private company to acquire a 70-year land usage rights from the Myanmar government. This was possible due to POSCO Daewoo’s long history of doing of doing business in Myanmar since the 1980s and the solid business network it has obtained over time.

Having successfully completed the Yangon Hotel, which will become the de facto landmark of Yangon, POSCO Daewoo is said to have proven its competence as a hotel business developer with the technology and expertise of operating hotel businesses in various countries such as China and Bulgaria, as well as Daewoo Hotel in Hanoi, Vietnam.

POSCO Daewoo President Young-sang Kim said, “The Myanmar hotel was successfully completed thanks to the outstanding business competency of POSCO Daewoo, which was recognized by Myanmar. We will continue to expand our scope of business and transform the company into a comprehensive global firm by adding new businesses such as strategic real estate development to our existing business portfolio which includes overseas trading and resources development.”

To add, POSCO Daewoo is operating a gas field in Myanmar, the largest overseas resource development business run by a private domestic company. It recently invested in a rice processing complex to actively make inroads into the food business and is expanding its business in Myanmar with other projects such as the Shwe Taung 70㎹ Gas-fired Combined Cycle Power Plant construction project.

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In addition, President In-hwan Oh and Vice President Jeong-woo Choi were re-elected as inside directors at the general shareholders’ meeting, and Vice Presidents In-hwa Chang and Seong Yu were newly appointed as inside directors. Those appointed as new outside directors were Shin-bae Kim, former vice chairman of SK Group; Seung-hwa Jang, a professor of law at Seoul National University, and Moon-ki Jung, an associate professor of Business Administration at Sungkyunkwan University.

During his first three-year term that began in 2014, Ohjoon Kwon worked to enhance the corporate structure and profitability by focusing on strengthening POSCO’s core competitiveness as a steel company, its financial soundness, and group restructurings for his first three years in the role.

Kwon, who worked as CTO (Chief Technology Officer) before becoming the CEO, is a steel technology expert who has previously served as the director of the Technology Research Center and director of the Research Institute of Industrial Science and Technology. Under his leadership, POSCO secured exclusive technology competitiveness and also moved forward with its Solution Marketing offerings that combine hardware, steel products, software integration and application technology, commercial support, and human solutions.

POSCO significantly drove up its operating profits by 19% to KRW 2.6 trillion at the end of last year from KRW 2.2 trillion in 2013, Kwon’s first year as CEO. During the same period, its operating profit ratio also increased from 7.3% to 10.8%, POSCO’s first double-digit operating profit ratio in five years. Since Kwon’s inauguration as CEO, a total of 126 restructurings have been implemented to achieve a cumulative financial improvement of KRW 5.8 trillion by the end of last year. Its debt ratio stood at 17.4 percent, the lowest level since the foundation of POSCO.

As CEO Kwon succeeded in improving POSCO’s structure while enhancing its financial soundness and profitability. The company’s credit ratings by international credit rating agencies also improved. In October 2016 Moody’s upgraded POSCO’s long-term credit rating outlooks from Baa2 (negative) to Baa2 (stable), and in February 2017, Standard & Poor’s upgraded their rating from BBB+ (negative) to BBB+ (stable).

On March 10, POSCO held its 49th general shareholders’ meeting at the POSCO Center. More than 200 domestic and overseas shareholders, including representatives of overseas shareholders and institutional investors, attended the general shareholders’ meeting.

“With a low growth rate, higher raw material costs, and the spread of protectionism throughout the overall domestic industry, we are facing a tough business environment,” CEO Kwon said at the general shareholders’ meeting. “But we will lay the foundation for future growth and strengthen the profitability of steel.”

To this end, Kwon laid out his vision for the future to:

• strengthen the steel business by reinforcing its World Premium Products that are based on proprietary technologies such as high-manganese steel and giga-grade steel,
• solidifying the group’s business structure through structural improvements and efficiencies,
• discovering and promoting new synergy projects among group affiliates, and
• preparing a future growth engine based on smart solutions.

In-hwa Chang, who was newly appointed as an inside director, is responsible for the steel production sites at Pohang Works and Gwangyang Works. He previously served as head of the New Business Management Office, head of the Steel Solution Marketing Office and head of the Technology Investment HQ. As head of the Technology Investment HQ, Vice President Seong Yu is heading up new business endeavors such as in high value-added product technologies as well as the development of POSCO’s lithium production ventures and cathode materials business. Yu previously served as head of the New Business Management Office, head of ESM Business Office and head of the PosLX Business Group.

Outside director Shin-bae Kim is a high-profile IT business entrepreneur who served as president of SK Telecom and vice chairman of SK C&C. Due to his excellent management skills, he was promoted to become a vice chairman of the SK Group.

Outside director Seung-hwa Chang is a professor of law at Seoul National University. Previously he served as a judge of the Seoul District Court and also worked as a lawyer in the United States. As a specialist in international trade law, he worked as an arbitrator for the International Court of Arbitration and was appointed as the first Korean judge of the WTO Appellate Court.

Outside director Moon-gi Jeong is an Associate Professor of Business Administration at Sungkyunkwan University. Jeong worked at Samil PwC as a member of the Financial Supervisory Service’s Accounting Review Committee for many years and has served as the Vice Chairman of the Korean Accounting Society.

The meeting was attended by about 200 domestic and overseas shareholders including representatives of overseas shareholders and institutional investors.

At a Board of Directors meeting held after the general meeting of shareholders, POSCO elected outside director Byoung-won Park as chairman of the Board of Directors. In-hwan Oh and Jeong-woo Choi were appointed as new presidents.

In-hwan Oh, promoted to president in February, is serving as Chief Operating Officer (COO) of the Steel Division and COO of the Steel Business Division. Before, Oh served as the head of marketing and the head of the Steel Business Strategy Office. President Jeong-woo Choi is currently the head of the Corporate Strategy & Finance Center after serving as the chief financial officer, head of the Corporate Audit Department, and vice president of POSCO Daewoo.

Byoung-won Park, chairman of the Board of Directors, is now chairman of the Korea Employers’ Federation and has been working as an outside director of POSCO since 2015. Park also served as chairman of the Woori Financial Group, chairman of the Korea Federation of Banks, and chairman of the National Happiness Fund.

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POSCO values the contributions from its female workers and their role in its success. In the past, The Steel Wire has looked at women in the steel industry as well as a few of the women who have had a lasting impact at POSCO. Please check out the in-depth interviews with Yukyung Lee, Group Leader of Iron Ore Group of the Raw Materials Department; Mihwa Park, Head of the Information Planning Department; Young Choi, Vice President of PR at POSCO Daewoo; and Lee Yoon Hee, Vice President of POSRI.

Today, in honor of International Women’s Day, we want to take a moment to celebrate three women who broke barriers in their own male-dominated fields. Their hard work, perseverance, and dedication allowed the world to recognize and acknowledge the capabilities of women.

Alice Peurala, Woman of Steel Who Fought for Gender Parity in Steel Industry

Women have long been a minority in the metals and mining industries (Catalyst noted in 2015 it was at just 13.3% in the U.S.). However, thanks to the efforts of women like  Alice Peurala, many more rights and protections are afforded to them today.

Alice Peurala was the first and only female to head a steel unit (Source: Daily Kos)

Alice Peurala, the first woman to head a steel unit, played a vital role in the steel industry during WWII. Peurala was one of the first female steelworkers who entered Chicago’s South Works mill in 1953 when there were only a few women left in the field. Most of the women who had steel jobs as a result of WWII had been let go when the men returned home. Those who remained, including Alice Peurala, faced gender discrimination in hiring and promotion. Having been an activist in the civil rights movement, she was determined to transform the steel industry into a more comfortable workplace for female employees.

“I did not win as a woman. I campaigned as a candidate who would do something about conditions in the plant that affect 7500 people – men and women.” – Alice Peurala

When Peurala was denied a promotion from her job in the Metallurgical Division to a job in a product testing lab in 1967 because people thought she was ineligible for a job that required overtime and heavy lifting, she sued the mill at the recommendation of the Equal Employment Opportunity Commission (EEOC). Due to her unwavering efforts, a compromise settlement was reached and in 1969, Peurala finally got her promotion. Her successful lawsuits against gender discrimination and the dictatorial control of the steel company owners were indeed a victory for all women in manufacturing. Alice eventually won the presidency of the Local 65 in 1979 and left an impressive legacy as a fighter for women’s rights.

Raye Montague, The First Person to Design Computerized Ships for Navy 

Raye Montague, the first female Program Manager of Ships in the U.S. Navy, not only shattered the glass ceiling as a black woman in the then male-dominated Navy but also the first person who single-handedly changed the way the U.S. Navy designed and used ships.

Growing up, she was often ridiculed for wanting to become a female engineer and was even denied entry into the University of Arkansas because the school did not allow minority enrollment at that time; however, she did not let gender or race barriers discourage her.

Raye Montague revolutionized the design process for all naval ships and submarines in under 19 hours in 1970. (Image courtesy of thv11.com)

She taught herself how computers worked and rose in the ranks for 14 years to become a computer systems analyst at the Naval Ship Engineering Center.  In 1970, she showed the world that women were just as capable as men in the male-dominated Navy by revolutionizing the design process for all naval ships and submarines – a task she famously completed under 19 hours even though she was given a month by her boss.

Montague retired in 1990 and entered the Arkansas Black Hall of Fame in 2013. After the award-winning film Hidden Figures was released, which tells the true story of three African-American women who helped the U.S. space program at NASA, Montague appeared on Good Morning America and sparked interest in her story as another true “hidden figure” during that same era, whose dedication and unwavering commitment became an inspiration to all women.

Billie Jean King, Breaking Records and Gender Barriers

Long a champion for social justice and gender equality, Billie Jean King is a 39 time Grand Slam winner and an American former world #1 professional tennis player. She transformed the world for not only female sports players but also for the LGBT community.

In 1973, King famously threatened to boycott the U.S. Open unless the winner of the ladies singles was awarded the same prize money as the men’s champion. Thanks to her efforts, the U.S. Open became the first major tournament to offer equal prize money to women and men.

That same year King famously defeated men’s former world No.1 Bobby Riggs in a match later dubbed “Battle of the Sexes” in the Houston Astrodome proving to the world that women could compete with men in any arena. In the most viewed U.S. tennis match of all time with more than 50 million Americans tuned in to watch, King beat Riggs, 6–4, 6–3, 6–3 for the USD 100,000 winner-take-all prize. More importantly, the match turned King into arguably the first superstar female athlete in the U.S. Later this year Emma Stone and Steve Carell will adapt this story for the big screen, helping to reignite the excitement of King’s win in 1973.

King also became the first prominent female athlete to come out as gay in 1981 and continued to advocate for gender equality and the LGBT community even after leaving tennis in 1983. In 1990 was named one of the “100 Most Important Americans of the 20th Century” by Life Magazine and in 2009, she was awarded the Presidential Medal of Freedom, the nation’s highest civilian award for her massive contribution to improving gender equality on the tennis court.

King’s demands for equal treatment and equal pay helped pave the way for future stars such as Chris Evert, Steffi Graf, and Serena Williams, the latter who broke barriers of her own at the 2017 Australian Open by winning her 23rd Grand Slam singles title, the most of any player in the Open Era.

“It’s not about the money, it’s about the message we send. We are sending the equality message out that this is the right thing to do. Yes, the men are better than us in some ways. Yes, we’re better in some ways. It doesn’t matter. Don’t you want to share in this world? I do.” – Billie Jean King

Billie Jean King photographed by ©Lynn Gilbert 1978, New York. (Source: Lynn Gilbert)

On International Women’s Day, POSCO honors these three remarkable women who made major contributions in their fields at a time when female participation was incredibly difficult. The bravery and dedication of these women, along with so much more around us who have broken through barriers to ensure gender equality are, and will continue to be,  a source of inspiration for all.

Cover Image Courtesy of Alfred T. Palmer, U.S. Office of War Information.

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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.