Namaste. This phrase might be familiar to many people as a greeting used in India. The literal meaning of this is, “I pay my respect to the gods in you,” so this can be a greeting to the user as well. India is filled with respect for each individual’s beliefs and ideals and is a place people want to visit at least once in their lifetime.

POSCO Newsroom presents to you the story of a POSCO expatriate in India who is working to enhance the status of global steelmaker POSCO. Today’s star is POSCO’s Yang-Su Lim, working in POSCO India PC (Processing Center), Ahmedabad. Meet Lim’s vivid story that he had gone through since the completion of the Processing Center.

Hello. I’m Yang-Su Lim, and I work at the Processing Center in Ahmedabad, India. Here in India, POSCO operates POSCO-Maharashtra (Maharashtra), a Cold Rolling subsidiary, POSCO-ISDC (India), a distribution subsidiary, and four Cold Rolling Processing Centers (Delhi, Chennai, Ahmedabad, and Pune).

The Ahmedabad Processing Center is located in the Sanand Industrial Complex, Gujarat, about 900 kilometers southwest of New Delhi, the capital of India. The area has recently emerged as an automotive manufacturing hub in India.

The Center, in charge of processing Cold Rolled steel, opened in April 2016. I came here as a POSCO expatriate in June 2015, while construction was still in progress.

▲ In 2018, POSCO merged three Indian processing centers — Delhi, Chennai, and Ahmedabad — into POSCO India PC to maximize operating synergy.

The Ahmedabad Processing Center is divided into three sectors — a factory with processing facilities, an office building, and a cafeteria — and has an annual processing capacity of 120,000 tons. As of 2019, there are a total of 200 employees, including two expatriates, 77 local employees, and 128 employees of partner companies. Our main task is to process materials from POSCO headquarter and overseas manufacturing subsidiaries into the forms desired by clients. We are also actively engaged in other affairs and contribution activities for the local community.

The best selling product at our company is automotive steel plates. Global automakers such as Ford, Suzuki, Tata, M.G Motor, and domestic automotive part markers such as JBM, Victora, and Vee-Gee are our major clients. Home appliance companies, including JCI-Hitachi and Highly Electric, and manufacturers of solar panel support structures are also some valuable clients.

When the processing center opened in Ahmedabad in 2016, sales stood at a mere 26,000 tons. Expectations were high, so it was a little disappointing. However, last year, as a result of all the efforts of our employees, we could boost sales to 140,000 tons, which is a growth of nearly six times — all within four years.

l Out in the Wild: Cutting Costs

I’m a general manager in the sales department, so I am in charge of all sales-related tasks, including client and demand development, material purchase, and bond management. At times, I have to switch between several roles, such as a ‘manufacturing manager’ in charge of production and quality, ‘a personnel manager’ in charge of the labor and human resources sector, and a ‘representative’ in meetings with local government agencies.

Five years have passed since I came to Ahmedabad. Sometimes I’m reminded of when I first arrived here. There was nothing but a container officer where I had countless meetings with architects to design the plant and optimize specifications of facilities. I also made numerous phone calls to my seniors in POSCO, Korea, who had much experience in the construction area. I remember talking with them on the phone the whole day.

To cut construction costs, all purchase orders for the construction were placed according to individual parts, so from the beginning, I had to meet separately with seven companies, including electricity, civil engineering, and interior companies. Since most of the construction work proceeded at the same time, there were some challenges because a delay in one sector led to a complete stop in the construction itself.

However, it was all worth it. We succeeded in saving investment costs by more than 1 million USD, and also we were able to understand the entire construction process of the processing center. Frankly, I couldn’t understand why I had to go through all the trouble during the construction period. But as the construction came to an end and I could see the plant and office building on the site, I felt really rewarded and proud.

▲ The Ahmedabad Processing Center under construction

l “It was perfect!”: Pioneering a New Market

Another memorable story would be “expanding sales by pioneering the high carbon hot-rolled steel (HR) market.”

In 2016, at the beginning of its establishment, the processing center faced difficulties in expanding sales since it supplied to global automakers solely. The center needed a breakthrough to survive in areas where demand for carbon steel was relatively low. While on market research at companies in various industries, we learned that there were several client companies nearby who were using high carbon steel.

To pioneer a new market, we conducted market research and sought to discover potential clients from December 2016. But it wasn’t easy at first since the steelmakers in the area already dominated the high carbon steel market. Client companies hesitated, saying that POSCO steel was excellent but expensive. Their existing partnership with the steelmakers was another problem. Six months passed without any significant outcome.

Amidst all the rejection and frustration, a Korean saying, “Dig a single well,” struck my mind. This proverb means that focusing on something wholeheartedly will yield satisfactory results. So the next day, I set off straight away to Ahmedabad Strips Pvt. Ltd. (ASPL), which is located near the center. I met with the person in charge every day and tried to form a close relationship, talking about Indian politics, current market conditions, and personal life. One day, something surprising happened. On a rainy day in July 2017, ASPL placed a trial order of POSCO’s high carbon hot-rolled steel and contracted 25 tons. How did I feel? It was as if I completed a full marathon.

“It was perfect.” This was the response we got from ASPL. After constant persuasion, we succeeded in getting additional orders. We were introduced to new client companies, and in 2017 alone, the contract volume reached a total of 300 tons. With new clients and a successful quarterly contract with ASPL, the contract quantity increased as well. As a result, in 2018, the center recorded sales of 3,000 tons, which is ten times higher than the previous year.

And this was just the beginning. The client said that it wished to increase the proportion of POSCO products. It was a moment when the efforts of our staff finally paid off. In April 2019, POSCO signed an MOU with ASPL to supply 10 thousand tons per year. We continued to develop and attract new clients and finally, in 2019, we were able to sell more than 6,000 tons.

▲ POSCO and ASPL signing an MOU in April 2019

The high carbon hot-rolled steel project is a typical example of POSCO’s philosophy, ‘Business with POSCO,’ which pursues shared growth with client companies. As of 2019, the high carbon hot-rolled steel acclaimed for approximately 5% of total sales at the Ahmedabad Processing Center, while ASPL was able to reduce costs and improve productivity with POSCO products. “Using POSCO products has improved the rate of error by more than 30%, and the productivity of rolled products by more than 1.5 times compared to the local products of India,” said an ASPL production manager.

l The COVID-19 Issue

With the rapid spread of COVID-19 and its impact on the economy, the Ahmedabad Processing Center is also doing its best to overcome the difficulties it faces. The center has formed a TF as a response to the COVID-19 issue. The TF manages the health of employees, quarantine status of the plant, transport vehicles, and partner companies as well, to prevent any case from occurring.

According to the guidelines from the Indian government, all companies within the nation had to shut down, and the Ahmedabad Processing Center also ceased operation temporarily from March 23. Currently, the center has resumed operation, but owing to the decrease in domestic demand, a reduction in sales seems to be inevitable.

The Indian government has announced four series of lock-down regarding COVID-19 from March 24 to May 31. However, in the case of ^*Lock-down 4.0 (May 18-May 31), measures have been relieved comparatively, allowing transportation and deliveries within the country. In the Lock-down 5.0, which is in effect from June 1, the central government has granted more authority to the state government resulting in the reactivation of local companies. However, restrictions are expected to continue in major cities, such as Delhi, Mumbai, Chennai, and Ahmedabad, where some confirmed cases are occurring.

As a measure to overcome the immediate crisis, all the employees at the center are doing their best to advance into the market and cut costs. Each employee is working with responsibility and ownership for the company. I hope that the economy will recover soon, and I am confident that this will give us a valuable lesson, and we can get through this situation and Jump-Up together.

I will definitely miss this place when I return home. But before then, I will do my best with the employees here at Ahmedabad to secure POSCO’s place in India.

The seminar was co-hosted by the steel solution marketing department, the wire rod marketing department and POSCO India. The product of focus was the automotive spring steel and bearing steel, boasting of price and quality competitiveness. They are to be strategically introduced to the Indian market. The goal was to design a foundation for product sales to improve on the sluggish sales of World Premium Plus products in the country.

On May 10, POSCO held the first overseas wire rod product seminar in Mumbai, India.

Spring steel is a material for manufacturing spring for automotive suspension and engine valve springs. It is WP+ material with which automakers require strict internal quality and surface quality. Bearing steel is a security component of a vehicle. Automotive bearing steel is a clean steel WP+ product that requires strict internal quality and quality certification from bearing customers.

Many including those from 18 clients in the automotive bearing steel and spring steel industry, and the global staff of the general trading company and POSCO India, participated in the seminar. POSCO introduced the wire rod product manufacturing process and the quality specifications of each product, and the best practices in solution marketing, all of which were well-received by the audience. Also invited were Daeho P&C and Jinyang Specialty Steel which process and sell wire rod products in Korea. They had an opportunity to publicize their wire materials and steel bars which are source materials, thus creating an opportunity for domestic wire rod processors and sellers to make inroads into the Indian market.

Anticipating Advancement in Indian Wire Rod Market

POSCO India entered into an MOU for technical assistance with POSCO India and SSS.

In addition, POSCO entered signed the MOU with Theis, a wire rod structural steel client, and SSS, the second largest manufacturer of suspension springs in India for technical assistance in agreement of supporting the wire rod processing technology. POSCO also held 1:1 counseling sessions with customers, and won a trial order from Theis for wire rod structural steel and from Coventry for steel suspension springs.

POSCO is planning to capitalize on this wire rod product seminar to solidify its customer base for automotive bearing steel and spring steel in India, thanks to the rapid growth of its automotive industry as well as increase the overall sales of wire rod WP+ products. Meanwhile, India has produced as many as 5.12 million cars last year, has been growing by more than 10% each year in the automotive industry over the past three years, and it is expected to produce 6 million cars in 2019.

Prime Minister Modi revamped India’s economy with his “Make in India” initiative. (Source: LinkedIn)

Most notably, Prime Minister Modi launched the “Make in India” initiative in September 2014, showing his resolve to revamp the manufacturing industry in India. Under the initiative, domestic as well as foreign companies are encouraged to manufacture their goods in India with the goal of increasing the makeup of the manufacturing industry to 25 percent of GDP by 2025.

At the heart of the initiative is the government’s efforts to ignite the steel industry. The National Steel Policy (NSP) 2017 declared that India will become self-sufficient on domestic steel supplies by increasing its steel production capacity from 122 Mt in 2015 to 300 Mt in 2030. However, the steel industry currently only makes up 1.04 percent of the country’s GDP.

Challenges Ahead for India’s Steel Industry

Despite India’s promising potential and robust government support, the steel industry has not met the government’s high expectations and growth has been modest. According to researchers in volume 4 of the Asian Steel Watch, there are deep structural flaws within India’s steel industry that need to be addressed before the country can reach its full potential.

One of the industry’s biggest challenges is its growing debt – In 2016, the steel industry surpassed INR 3 trillion in debt. Most of the country’s steel and infrastructure projects are financed by the government. What India needs is more private sector involvement, but private players are hesitant due to complex regulations, a lack of business models and no guarantee on returns on investment (ROI). The government has also been slow to secure FDI because, over the years, India’s steel industry has displayed poor planning and management of projects as well as a mismanagement of funds.

India’s mining industry will directly affect the success of the steel industry. (Source: Pinterest)

Another major challenge has to do with India’s natural resource management, as mining companies do not have fair access to the country’s abundant resources. The mining industry is subject to heavy tax burdens including the royalty, local area development tax, forest development tax and much more as it is a profitable business for the government. Plus, the costs of meeting international environmental standards are passed directly onto mining companies. Thus, the price of iron ore and other minerals do not reflect the abundant supplies available, and the higher prices ripple into the steel industry.

Moreover, the government regards the steel industry as the backbone of India’s economy, but in reality, the times are changing.

Technological advances in the manufacturing industry is making the steel production process more efficient and less labor intensive. (Source: South China Morning Post)

In the past, 70,000 workers were required to produce 1.5 Mt of steel. Today, it takes about 3,000-4,000 workers to make 5 Mt a year. The steel industry is just not what it used to be in terms of the positive effects it had on the economy as a whole. The industry requires intensive capital and the only way it will survive is with low labor costs and maximum manpower productivity.

India needs to take full advantage of the country’s abundant resources and capitalize on its competitiveness to reach its full potential. In order to do so, India can start by examining other steel industries that served as the main driver for national economic growth, such as Korea’s.

Takeaways from Korea

After the Korean war in 1953, Korea had to build its economy up from scratch. Like India, the government chose to stimulate its steel industry and spent its war reparations payment from Japan to build POSCO’s steel mill in 1969. Since then, the state-led steelmaker has been a primary engine for Korea’s miraculous economic growth.

The construction of POSCO’s headquarters began in May 1968.

So how did Korea manage such growth?

The government allocated much of its resources to infrastructure construction for efficient logistics and implemented policies to support the mutual growth of steel and steel-consuming industries. Moreover, the government practiced protectionist trade policies long enough to get Korea’s steel business on its feet, then supported a market-driven business model.

The government also kept a close watch on supply and demand forecasts and updated its supply policies timely and accordingly. Factors such as demographic changes, industrialization patterns, urbanization and labor costs should be examined holistically to prevent the gap between supply and demand from increasing too much. For example, in 2010, the Korean government implemented capacity expansion policies that resulted in oversupply and a prolonged recession. This was because policymakers failed to diagnose the symptoms of the mid to long-term steel demand forecasts that showed sluggish demand. Since then, Korean policymakers keep close watch on such measures to update the country’s supply policies.

Finally, the Korean steel industry invested heavily in knowledge accumulation and R&D to wean off of Japan’s technical support and become an exporter of steel technology.

POSCO is now a leader in steel production technology.

Compared to Korea, India has an advantage in almost every aspect. The country’s per capita steel consumption is still low and the booming population will drive demand in steel-related industries. With much room for growth, the Indian steel industry can expect to see accelerated growth when paired with the right policies and government support.

India’s Solar Energy Market

Solar energy is an extremely vital and rapidly developing industry in India. From May 2014 to March 2017, the country quadrupled its solar generation capacity. The average cost of solar electricity is 18 percent below the average price of coal-fired energy, making solar electricity the cheapest form of alternative fuel in India.  

The Indian government is fully supportive of this market, setting a goal of USD 100 billion in investment and 100 gigawatts (GW) of solar capacity for the country by 2022. Solar is particularly important in the rural areas of India where there is limited access to electricity, so the government plans to install solar lanterns, home and street lighting systems and solar cookers.

The world’s largest solar farm is in Tamil Nadu, India. (Source: Alternative Energies)

In November 2017, India became home to the world’s largest solar farm in Kamuthi, Tamil Nadu. The farm covers 2,500 acres with 2.5 million solar modules. India’s solar electricity market has the potential for further expansion, and global suppliers and manufacturers are taking notice.  

POSCO India, a Partner for PV Structure Manufacturers

POSCO is a steel supplier making headway into the Indian solar energy market with its innovative and sustainable products. In September, POSCO India took part in the 2017 Renewable Energy India Expo in Greater Noida.

POSCO’s Booth at the 2017 Renewable Energy India showcased PV structures made of PosMAC steel.

POSCO India Chairman and Managing Director Gee Woong Sung and other POSCO employees showcased POSCO’s solar (PV) structures, constructed from PosMAC steel (POSCO Magnesium Alloy Coating Product). “By the end of this year, we will complete the Indian solution marketing system, which will supply not only steel but also solar PV structures,” said Sung. “In 2018, we will further expand PosMAC sales in India.”

By the end of the event, POSCO signed memorandums of understanding with four major manufacturers of PV structures in India, and will be supplying 49,000 tons of PosMAC with a goal of increasing production to 60,000 tons by 2018.

Solar Electricity Solutions with PosMAC

PosMAC steel has great potential in India because it is ideal for solar panel application. It is ultra corrosion-resistant and cost-effective. Watch the video below to find about the technology behind PosMAC.

A typical PV unit lasts for about three decades, during which a failure of any part would lead to an early demise. PosMAC steel provides weather resistance and is also less expensive than other PV materials like stainless steel.

Despite its varying climate, India is a country with excellent conditions for capturing and using solar energy, with roughly 300 days of sunshine each year. Along with vibrant market conditions, heavy government backing as well as a large consumer base, India’s new and renewable energy industry is set for growth. As solar energy is the cheapest form of alternative fuel, solar PV unit manufacturers will have plenty of business opportunities in India’s growing market.  

Cover photo courtesy of l’Ener Geek.

The REI Expo is one of the world’s largest new and renewable energy exhibitions. More than 725 companies from 40 countries participated in the Expo, along with approximately 50,000 visitors. The turnout was largely due to the Indian government’s infrastructure expansion and intensive investment plans for new and renewable energy.

POSCO’s Booth at REI 2017 showcased PV structures made of PosMAC steel.

POSCO India’s booth at the event showcased its solar PV structures made of PosMAC steel to major solar companies and structure manufacturers such as Adani, Nextracker, Arctech, Softbank, Purshotam, etc.

During the Expo, Memorandum of Understanding (MoU) agreements were signed with four companies. POSCO India’s Chief Managing Director Gee Woong Sung said, “By the end of this year, we will complete the Indian solution marketing system, which will supply not only steel but also solar PV structures. In 2018, we will further expand PosMAC sales in India.”

POSCO India signs an MoU with Ganges Internationale.

In addition to showcasing their premium product, POSCO has been working hard to meet customer demands in all areas. In order to meet short delivery times and structural supplies required by various PV projects in all parts of India, POSCO India has decided to establish a PosMAC structure supply chain system through strategic cooperation with local construction companies.

In the first stage of development, the free space at POSCO-IAPC located in Ahmedabad will be utilized via a long-term lease, and the manufacturing machinery is being installed with an operation target set for October. In the second stage, POSCO India has plans for additional installations in the Delhi and Pune regions.

POSCO India will strive to build a differentiated sales network with its solution marketing activities and secure a sustainable competitive advantage over other companies through its premium-quality products and advanced supply chain system.

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With the winter season in full swing in northern India, POSCO India and India Delhi Processing Center (IDPC) employees, under the charismatic leadership of President Mr. Gee Woong Sung, planned to distribute warm smiles to needy children living in the slums. As an extension to the food donation drive, POSCO employees planned a visit in collaboration with the Delhi-NCR Food Bank on December 9, to one of the slum schools run by Sakshi, a non-governmental organization (NGO), at Badshahpur in Gurugram, Haryana.

The Sakshi Center at Badshahpur has around 200 impoverished kids who get a free education and meals. The ages of these children range between 3 to 10 years old. They receive a basic education at a small school which has 5 classrooms, 1 library cum computer room and 7 teachers in total. The children come in batches of 100, in 2 different shifts.

About Sakshi

Sakshi is the only full-spectrum grassroots NGO in India providing services spanning the development trifecta of education, health and community development to its community. The organization is thus able to provide a comprehensive path from poverty to prosperity for the destitute, and fully empower them to tread on it successfully.

Over the last eighteen years, Sakshi has grown to 120 centers and managed to carve paths to a beautiful life for thousands of marginalized young children, women and communities.

What was POSCO India’s role in this donation drive?

During this donation drive, POSCO India & IDPC voluntarily planned to spend time to help and support the children. They served food, cleaned & sanitized the school premises and provided logistic and stationary aid for the children to be able to continue their day to day education. The company donated shoe stands, notebooks, pencils, erasers, sharpeners, sketch pens, crayons and writing and reading books for the library. All the kids were extremely excited and overjoyed to meet POSCO volunteers at their school, and it was clearly evident that the feeling was mutual among POSCO employees as well. At the end of the visit, snacks were given to each child: a pack of apple juice and a banana, which ended up being the icing on the cake for the day.

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What is the Food Donation Drive?

As part of the company’s efforts to promote volunteer work among employees, POSCO-INDIA (President Mr. Gee-Woong Sung) started the “Food Donation Drive” program in December 2015, in collaboration with Delhi-NCR Foodbank. The second food drive was successfully held between January 18-23 of this year with overwhelming employee participation. The goal of this program is to provide free food to those in need to help eliminate hunger and food insecurity in Delhi-NCR (National Capital Region). It is a small effort towards ending the fight against hunger and malnutrition in India.

Under this program, food collection boxes are placed at the main entrance lobby of POSCO-INDIA and POSCO-IDPC office premises for one week. Employees donate unlimited quantities of non-perishable food items such as rice, wheat flour, sugar and cooking oil. At the end of the week, representatives of Delhi-NCR Foodbank collect the donations. These food items are then used as part of the hot meals that are provided daily to approximately a quarter million vulnerable and homeless residents in Delhi and nearby regions.

A True Internal “Volunteer” Activity

Delhi-NCR Foodbank was first implemented in 2012 and is operated by the Responsenet Development Services (RDS), India. They collect food donations from individuals and corporate organizations, and redistribute them in the form of cooked meals at 30 feeding centers that provide services to the poor, homeless, charitable hospitals and orphanages.

It should be noted that the food drive contributions at POSCO-INDIA are made voluntarily by employees. The volunteering efforts come from inside the company, out of a desire to make a change and create value in the community, as well as nurture a sense of empathy. The importance of eradicating hunger and providing nutrition in India has been reiterated as one of the provisions for CSR (Corporate Social Responsibility) in Schedule VII of Section 135 of the Indian Companies Act 2013. Also, according to Indian law, it is mandatory for companies to set aside 2 percent of their net profits for CSR activities, which is why several Indian companies chose efforts like these as a part of their CSR programs.

Interview with POSCO Employees

We interviewed employees who took part in this program. See what they had to say.

Q. How does it feel to participate in the “Food Donation Drive” program?

 Mr. Pabitra Mohan Swain, Administration Department: “I felt really happy and pleased to be part of a program that helps to fulfill one of the most important basic needs of a human being. The most memorable part for me was the way everyone came forward to help voluntarily.”

Mr. Shreenibasha Mishra, Finance Department: “I was able to share my food with someone who really needs it, which made me feel more motivated about going to work. I love that my company thinks highly enough of its employees and the things we care about to give us time and money to give back to causes we care about.”

Ms. Trupti Ray: “I do feel as if I have something special to offer to a very special cause to help others, to make a small difference in children’s lives. I remembered the gradual filling of the food basket on each day and feel happier thanks to POSCO India’s employees. It’s such a great feeling to be around other people who support the same cause that you feel strongly about.”

Q. As an employee, how do you feel about POSCO-INDIA participating in CSR activities?

Mr. Pabitra Mohan Swain: “As an employee I am proud to be a part of POSCO-India—an organization that always promotes voluntary donations, as per the vision of our Honorable CMD to ‘Donate Voluntarily’ and silently to serve the community. Since joining last year I have seen various CSR activities carried out by POSCO India and POSCO Family companies, which really inspires me as an individual.”

Mr. Shreenibasha Mishra: “Today, being in business for the sake of making profit is not enough. Customers and consumers will continue to expect good quality products and services. To a larger extent than before, people choose to work with or buy from companies that positively impact their community. Therefore, it is important to include CSR in a business’ strategic plans. It is a win-win for all involved—the company, the customers, the community and society.”

Ms. Trupti Ray: “I feel inspired, connected and hopeful working in a company like POSCO India, where employees spend their time and effort doing something good for society, and to make the world a better place.”

Apart from sharing with the underprivileged, POSCO-INDIA employees also nurture an appreciation culture within the organization by adding messages to the “Appreciation Tree” to show appreciation of other employees’ actions and behaviors. This creates a sense of oneness and fun within the workplace.

Since its establishment, POSCO has identified its corporate mission as contributing to the nation’s development, and has carried out various social responsibility activities to do so. Keeping the same spirit, POSCO-INDIA aims “for a better world” together through its small efforts in contributing to India’s society.

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The words of Winston Churchill, former prime minister of the United Kingdom, ring loud and true, and completely resonate with the values of POSCO, who, in the spirit of giving back to the community, has implemented a number of volunteer programs across the world.

Through the annual POSCO Global Volunteer Week in May, under the theme “POSCO Family’s Talent Sharing Week,” the company leveraged its internal power and the talents of its employees to help those in most need.

The Provincial Social Work Centre of Bà Rịa–Vũng Tàu (formerly known as the Disabled and Orphaned Children Sponsoring Centre) was established in Vietnam in 1999 to provide education and vocational training to those with disabilities, as well as orphaned children, so that they might be able to more easily integrate into society. However, since its establishment, the center has become rundown, and facilities have been neglected. As such, POSCO Vietnam decided to focus its Global Volunteer Week efforts on reviving this center.

Employees were eager to contribute in whatever way possible. Some focused on educating the center’s teenagers on basic life skills, such as how to safely repair a light socket. Others gave Korean cooking lessons or helped to restore center facilities, like the wooden beds that had been broken for as long as the children could remember.

“Today, I’m a carpenter and repairing beds for the children at the center,” noted Mr. Như, team leader of QC. “I am happy doing this work and I hope that the children here can now a have a safe and sound sleep.”

Like POSCO Vietnam, POSCO Headquarters also values the happiness and well-being of each individual of the community, and is actively working towards bettering society.

During Global Volunteer Week, employees in Korea volunteered their time by hosting events for multicultural families and spending quality time with elderly residents of their communities. Some even contributed to making local neighborhoods more beautiful by painting colorful murals, brightening not only the streets, but also the smiles of the area’s inhabitants.

Not unlike many workplaces, POSCO India hosts a monthly event to celebrate the birthdays of its employees with lunch and cake. But last December, Managing Director Sung Gee-woong, while having a casual conversation during the birthday party, mentioned that real happiness is realized only when it is shared with others, especially with those who are in most need.

Those in attendance agreed and it was unanimously decided to create a voluntary “birthday fund” in which employees who are celebrating their birthdays during that particular month contribute to a fund that is used to purchase food and everyday items which are then distributed to those residing in slums near the company.

Yet, contributions are not limited to outside the office. When a member of the POSCO family is in need, fellow employees are quick to reach out.

Such was the case when the son of an employee at POSCO-IDPC in Delhi was recently diagnosed with blood cancer. The staff was quick to extend a helping hand and collectively offered financial support to aid in medical expenses.

These heartfelt gestures of kindness boldly illustrate that POSCO is more than just a company of employees seeking to make a living. It is a family that shares a general responsibility for all humanity, dedicated to making the world a better place, one small act at a time.

It is rightly said that winning teams don’t just form overnight.

Organizations invest a huge amount of time and money into their employees to develop teams with high potential by hosting continuous training programs and skill-building activities. Organizations competing in the global marketplace often implement strategic human resources programs, innovative employee engagement activities and reward and recognition practices. In today’s world, the main reason why companies implement such initiatives is to develop the core competencies of their employees at various levels. Companies do this by encouraging interpersonal and cultural sensitivity, developing individuals, managing skills and increasing the motivation of team members, which in turn enables managers to communicate with team members constructively and effectively.

Considering this scenario and the need for development, POSCO-India, a fully owned subsidiary of POSCO, in partnership with Korea and representatives of POSCO’s family companies in India, took its first initiative in October 2014 to develop an education structure for employees based on their hierarchy and levels in POSCO family companies.

The structure was designed after conducting a thorough analysis for 45 days through various face-to-face interviews, surveys and interactions with employees from eight POSCO family companies. The survey outcome was further discussed with POSCO Group University in Korea to develop a Common Education Structure for POSCO family companies in India that will also align with POSCO’s global education structure. POSCO-India identified three categories of training based on improving business performance, competency-based learning, developing leadership skills and aligning with POSCO’s core values.

The following were the three different categories and courses:

a. Leadership Course
Team Leader Course, Labor Management, Effective Coaching
b. Common Course
POSCO Values sharing, Business Etiquettes, Basic Discipline
c. Job Course
Technical Training, Negotiation Skills, Time Management

For any organization to evolve and sustain in the long run, team leaders and managers need to be aligned with their roles and responsibilities, ethics and values, and people management skills at different levels. POSCO-India realized this opportunity and introduced its first leadership competence course for POSCO family team leaders in December 2014. The course was held at Pune for three days from Dec. 14 to 17, enabling participants to gain an in-depth understanding of a team leader’s role in POSCO and educating them on how POSCO leaders handle critical situations. Thirty-three team leaders from eight POSCO family companies participated in this course.

This overall course emphasized an in-depth understanding over five topics:

1. POSCO Management Philosophy & Core values
2. Appreciation Culture
3. Role & Responsibility of a POSCO Leader
4. Personality assessment profiling
5. Situational Leadership, Emotional intelligence & Handling Conflicts.

Participants who attended the course were given a completion certificate duly signed by POSCO-India’s chairman and managing director. The three-day course was concluded with a group photo and a ceremony to thank the participants.

Subsequent to the successful completion of the team leader course in December, POSCO-India launched its second leadership competence course for managers on the topic of “Labor Management and Industrial Relations” at POSCO-IDPC in Bawal, Haryana in January. Labor management and relations is one of the most sensitive topics and is a major area of focus for organizations dealing with a variety of people. Taking the overall initiative forward, various courses from all three categories will be introduced for employees in the coming months. POSCO-India is collecting nominations for employees for the next six months from all the family companies who will participate in the courses throughout the financial year. This will give employees an opportunity to participate in each course and also gives a chance to team leaders to nominate their team members depending on the current training needs and their development areas.

With POSCO-India’s firm belief in human resource development and as representative of POSCO family companies in India, we hope to successfully move forward with our vision to develop a strong education structure and promote leadership, which will lead to more successful stories for POSCO globally.

POSCO (NYSE: , PKX) held IR conference call on October 23^rd, to announce its 3Q performance results.

On a consolidated basis, the company recorded 16,270 billion KRW (About 14.4 billion USD) in revenue and 879 billion KRW in operating profit. Operating profit margin went up to 5.4%, 0.4%pt increase from 2Q, due to stabilization of global steel business and increased profit in the energy sector.

Especially, Indonesian integrated mi started operation from January 2014, showed utilization rate of 82% and 24% increase in sales volume from the 2Q, which resulted in 3Q operating profit. Also, POSCO India’s electrical steel mill turned the profit through expanding its sales base. With support from the stabilized performance of overseas steel mills, steel sector profitability recorded 5.3%.

Meanwhile, Daewoo International’s Myanmar gas field showed 20% of an increase in operating profit from 2Q, as production expanded as scheduled. Along with the increase in production volume, the operating profit of POSCO Energy has also increased by 138% from 2Q.

POSCO stand-alone revenue reached 7,290 billion KRW (7.2901 trillion USD) and operating profit recorded 635 billion KRW. Due to increased export to overseas production centers, POSCO’s product sales and operating profit have enhanced. As a result, POSCO has recorded operating profit of 8.7%, which is 1.1%pt increase from 2Q.

POSCO is also expanding its automotive steel products sale, by using global production sites and sales network. As POSCO continues to expand sales to global automakers towards target regions, including the U.S. and China, through 5 automotive steel product mills, and 47 coil centers, POSCO expects to reach 8.2 million ton in total sales amount of automotive steel in 2014.

POSCO’s client-oriented solution marketing activities have contributed to the increase in a high-value steel product sales. Adding to the development of high-strength PosM Steel, super austenitic stainless steel products and magnesium panel, the new automotive lightweight material, the sales of the solution marketing products have increased up to 407 thousand tons, which is 59% increase from 2Q.

Although the steel demand in 4Q is expected to increase slightly, due to seasonality and the slow market conditions of the automobile industry, POSCO plans to steadily expand the client-oriented solution marketing activities.

Moreover, POSCO has continued to reduce carbon emissions through activities, such as building off-gas power plants. Furthermore, POSCO will continue its social contribution to reducing greenhouse gases by development and sales of high strength steel for a lighter-weight automobile.