PT. KRAKATAU POSCO sold 1.7 million tons of steel in 2014, its first year of operation, then increased its sales to 2.8 million tons in 2016. The company’s annual sales volume has increased continuously, and its cumulative sales reached 10 million tons as of January 15, 2018. Last year’s tentative performance showed an operating profit of about USD 12 million, enabling the company to turn a profit for the first time.

PT. KRAKATAU POSCO, which began operations in December 2013, is the first integrated steel mill in Southeast Asia with a production capacity of 3 million tons. POSCO and Indonesia’s state-operated steelmaker Krakatau Steel invested 70 percent and 30 percent respectively.

PT. KRAKATAU POSCO is the only steel mill in Southeast Asia with a 3 million ton capacity.

As PT. KRAKATAU POSCO is POSCO’s first overseas steel mill, POSCO concentrated all the competencies of its group affiliates including POSCO E&C, POSCO Energy and POSCO ICT into constructing and operating the facility. After 4 years of hard work, PT. KRAKATAU POSCO is now the leading steelmaker in Southeast Asia.

Instead of resorting to imports, Indonesia can now procure high-quality steel products from  PT. KRAKATAU POSCO, greatly enhancing the competitiveness of Indonesia’s steel-consuming industries.

PT. Bukaka Teknik, manufacturing steel-frame structures, is planning to purchase 120,000 tons of thick plates from PT. KRAKATAU POSCO, and construct Indonesia’s first steel-framed elevated expressway, and PT. Kenertec, Korindo Heavy Industry’s wind turbine tower production subsidiary, will build wind power generators and wind turbine towers with PT. KRAKATAU POSCO steel for export to the US and Europe.

PT. KRAKATAU POSCO also plans to further reinforce partnerships with local steelmakers and increase investments in downstream industries to continue providing quality steel products to its partners in Southeast Asia.

Cover photo courtesy of Universitas Gadjah Mada.

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

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

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

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

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

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

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

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For global companies it is often not easy to build successful CSR programs overseas due to differences in cultures, customs, and laws. However, the POSCO Group is working to form strong relationships with local communities near its offices and plants by being attentive to the local issues and actively working to find solutions together with the communities.

POSCO Vietnam helps improve homes with the POSCO Steel Village

Since 2009, POSCO Vietnam has been working to understand the needs of the local communities near its plant. By combining the needs of the community with the capabilities of POSCO and its group companies, POSCO was able to improve local housing through its POSCO Steel Village, POSCO Steel Bridge, and POSCO Steel Playground initiatives.

On November 30, 2016, POSCO Vietnam received the Excellent CSR Prize, the most prestigious prize from the Korean Minister of Trade, Industry, and Energy at the 6th Korea-Vietnam CSR Awards in 2016. The award ceremony was held at the KOTRA Hanoi Office on December 28.

In particular, because POSCO Vietnam handles various licenses and permits for steel bridge construction, they formed a volunteer group with members from various POSCO partners. POSCO A&C participated in the design, SS-VINA supplied section steel products, and POSCO E&C processed and built the bridge.

The POSCO Steel Bridge project is seen as a model CSR activity by the local communities and the Vietnamese government. As a result, POSCO Vietnam was awarded with the Excellence in CSR designation, the most prestigious award from the Korean Minister of Trade, Industry and Energy at the 6th Korea-Vietnam CSR Awards on December 28, 2016.

POSCO Steel Village (left) will contain 104 households and is slated for completion in April 2017. The POSCO Steel Bridge in Vietnam (right) was completed in January 2016.

POSCO partners with local schools in Myanmar

In Myanmar, POSCO has been working to provide resources to local schools. Since 2014, POSCO E&C formed sisterhood ties with nearby secondary schools and signed an agreement to work with the National University of Arts and Culture in Yangon. POSCO E&C has donated educational materials and equipment, repaired educational facilities, organized cultural exchange activities, and built rainwater storage & drinking water facilities. More recently, POSCO has been leading the way in making improvements to the safety of Yowa Village. By partnering with POSCO’s 1% Sharing Foundation, they were able to build a bridge in the village with POSCO steel.

For these efforts, Myanmar-POSCO E&C recognized for its contributions to Myanmar’s local communities in the 2016 Myanmar Excellent CSR Company Awards that were held in Yangon, Myanmar in December 13, 2016.

Hyun-ik Choi (right), head of POSCO E&C Myanmar, receives the Prize of the Minister of Strategy and Finance of Myanmar from U Aung Naing Oo, Director General of DICA and General Secretary of MIC. The 2016 Myanmar Excellent CSR Company Awards took place at the Sedona Hotel in Yangon, Myanmar, on December 13.

POSCO Krakatau gives back to Indonesia

In Indonesia, the Krakatau POSCO Social Enterprise (KPSE) has been working to support secondary education, create jobs at the steel mill, and return profits to the local communities in Cilegon, Indonesia, where the steel mill is located.

KPSE, co-founded by the POSCO 1% Sharing Foundation and KOICA, was awarded for its efforts at the ‘2016 Korea-Indonesia CSR Forum and Awards Ceremony’ that was hosted by the Korean Embassy in Indonesia and KOTRA on December 15, 2016.

KPSE manager and acting CEO Jang-gon Jeon (2nd from the left) and Andi Soko, officer of personnel management and general affairs at PT.KP (2nd from the right) stand with KPSE employees after receiving the Prize of the Director of the Indonesian Investment Coordinating Board. The awards ceremony took place at the ‘2016 Korea-Indonesia CSR Forum’ held at the Shangri-La Hotel in Indonesia.

POSCO Group’s overseas subsidiaries have been recognized for their broad contributions in CSR. POSCO Group will continue to promote win-win growth in partnership with local communities at home and abroad based on the Group’s unique values that recognize the overseas market as a partner and not as a business target.

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