The 2024 Global Volunteer Week, POSCO’s special volunteer service event, was held from May 23 to 31. More than 20,000 POSCO employees in Korea and other countries participated in large-scale volunteer work to practice sharing. POSCO Newsroom has taken vivid photos of the volunteer activities carried out by overseas subsidiary employees worldwide. Let’s meet them!

▲ POSCO-ZPSS employees carried out various volunteer activities to celebrate Global Volunteer Week. They held a bazaar in the cafeteria and in front of the parking lot and donated a total of 16,000 yuan to special schools and families in need. They also visited Jin Xiu School in Zhangjiagang City to provide a voluntary service of taking graduation photos for about 300 students from low-income families and donated sportswear and sneakers to the women’s volleyball team players.

▲ POSCO-QPSS employees participated in the “Love Sharing Blood Donation” event hosted by the Qingdao City Blood Donation Center and held a charity bazaar with donated goods from 48 employees in the office building’s first-floor lobby. They donated a total of 1,779 yuan to the underprivileged.

▲ POSCO-Asia (Hong Kong) employees visited a local support group for underprivileged children and donated the future generation support funds raised through the 1% Sharing activities and participated in Food Angel volunteer work to make about 2,500 lunch boxes to distribute to neighbors.

▲Twelve employees of BX Steel POSCO Cold Rolled Sheet Co. visited the Korean-Chinese Middle School in Benxi and held an art contest with the theme “Waste sorting for environmental protection starts with me” as part of an eco-friendly knowledge learning class and awarded excellent works.

▲ POSCO-CSPC employees visited the Children’s Love Center, which was newly established by the Hua Qiao Government to help special children live a safe and convenient life, and provided various learning aids for children to use. They also placed air-purifying plants throughout the children’s center to create a pleasant indoor environment.

▲ POSCO-CCPC employees carried out an environmental cleanup at the Yulin river’s Long Xing Estuary near the company’s head office and collected waste by going around approximately 2 kilometers near the river road for two hours.

▲ POSCO-CDPC employees held a handmade craft event with clay drawings with children at a Hong Yan daycare center near the company’s head office.

▲ POSCO-CFPC employees held a Healing Summer event by inviting families of the disabled. They invited the families of the disabled to the Guangdong Industrial Design Complex and ran a program where the visitors could experience Guangdong Province’s industrial development and POSCO’s corporate culture.

▲ POSCO-CHPC employees visited a Wuhan Yi De senior welfare center, where they have been carrying out volunteer services for 9 years, and spent time with the seniors making zongzi, a traditional food for the Dragon Boat Festival.

▲ POSCO-CJPC employees visited a Jilin Chao Yang special school near the head office, laid out safety mats so that the children could rest comfortably and provided snacks.

▲ POSCO-CLPC employees donated five electric nursing beds to vulnerable groups living near the factory with donations collected through 1% Sharing activities.

▲ POSCO-CQPC employees visited the Qing Yu Village, a sister village that was having difficulties with timely harvesting due to a shortage of workers, helped the village people to harvest and package cherries, and donated the cherries to a local senior center.

▲ POSCO-CTPC employees collected 309 sets of old clothes that they no longer used and donated them to a public interest collection platform.

▲ POSCO-CWPC employees carried out activities to remove weeds from the factory’s idle site.

▲ POSCO-CYPC employees visited the beach in downtown Yantai, where many tourists go in the summer, and carried out environmental cleanup activities to pick up trash and put its ESG management philosophy into practice.

▲ POSCO-Japan PC employees carried out environmental cleanup activities for five days in the Toyohashi Sports Complex near the factory, the fishing park in the Yokkaichi Kasumigaura Industrial Complex, the area around the Kawasaki factory, and the vicinity of Higashi Ogishima West Park.

▲ POSCO-PMPC employees cleaned the roads and sewers to prevent flooding that may occur during typhoons and the rainy season in the First Philippine Industrial Park where the company is located.

▲ POSCO-Malaysia employees performed environmental cleanup at community halls and kindergartens near the company by trimming grass, painting old goalposts, cleaning the inside and outside of buildings, and collecting waste.

▲ All POSCO-MKPC’s Klang Factory employees walked a 2-kilometer path between the Klang Factory entrance and surrounding villages to collect waste to participate in the “Zero Disposable Plastic” waste reduction campaign.

▲ About 30 employees of PY NIVA (POSCO YAMATO VINA) purchased paint supplies using funds raised through the 1% Sharing program, repainted tables and chairs they previously donated to an elementary school near the company, and delivered scholarships of 10 million dong to students in need.

▲ POSCO-VST’s 130 employees went around the company to collect roadside trash and provided a fun time by holding a charity bazaar and traditional game competition at a nearby elementary school.

▲ POSCO-Vietnam’s 90 employees visited two orphanages near the company’s head office and had a good time with the children by distributing snacks and school supplies.

▲ POSCO E&C Vietnam employees visited Phuc Lam Orphanage Center and donated daily necessities, school supplies, and a support fund of about 1.6 million won to instill hope in children for the future.

▲ POSCO-Thailand PC’s 67 employees carried out the protection of the maritime ecosystem jointly with the Chonburi Province Coral Preservation Foundation by planting coral seedlings in the sea. Their activities were introduced in detail on the Foundation’s SNS.

▲ POSCO-TCS employees visited nearby Banpusai Elementary School, donated shoe racks and created a vegetable garden. Moreover, they replaced toilets and lighting in old bathrooms and provided education on safety and hygiene to the students.

▲ POSCO-Thainox employees cleaned pedestrian paths near the local municipality office, cleaned drains in preparation for the rainy season, and visited welfare centers for children and people with disabilities to donate daily necessities and carry out activities such as ceiling repair and restroom maintenance. Moreover, they donated relief supplies to nearby emergency rescue teams and self-made bulletproof panels in bulletproof vests to police stations.

▲ POSCO-ISDC’s employees visited a nearby school in Mangao, donated educational TVs and water dispensers, provided English lessons for students, and planted eco-friendly mango trees with the children.

▲ POSCO-Maharashtra employees visited a welfare center for visually impaired students and donated various items, including food and school supplies, to help students grow up in a good environment.

▲ POSCO-IDPC’s employess donated 30 barricades for traffic control to the Casola Police Station in the region. Moreover, they participated in the Indian government’s “Clean India Vision Campaign” by picking up trash and cleaning roads near the office.

▲ POSCO-IAPC employees walked around the roadside in front of the center, picked up discarded trash, and planted seedlings, contributing to creating a pleasant community environment.

▲ POSCO-ICPC collected trash around drainage ditches and removed steel items such as bolts from roads to prepare for heavy monsoon rains and safety accidents around the Chennai Center. In addition, to increase the convenience of nearby residents, the area was cleaned up with pedestrian roads and maintenance.

▲ Fifty employees of POSCO-India Pune Processing Center (IPPC) planted 500 fruit tree seedlings, such as guava, custard apple, and sapota, at Lake Talegaon Dabhade near the company.

▲ POSCO-IJPC’s 28 employees visited a nearby nursing home to celebrate Family Day in Indonesia, prepared chicken porridge and drinks for senior adults, and made and installed handrails in the front yard and walking path.

▲ PT. Krakatau POSCO employees visited a local school for the disabled, built a garden, repainted oil painting, and cooperated with the Ministry of Oceans and Fisheries to build an artificial fish reef at Ketapang Beach and clean up the shore. Furthermore, they participated in a blood donation event, delivering 221 blood bags to the Red Cross. They also conducted environmental cleanup activities at five local landmarks with military units and municipal officials from the Cilegon area.

In Part 2 of ‘2024 Global Volunteer Week’ overseas employee volunteer activities,
Overseas corporations in Turkey, Poland, the United States, etc.
Lively volunteer activities participated by POSCO International executives and employees
We will report on the scene. Thank you for your interest!

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

The 2008 Financial Crisis was a blow to the global automotive industry and its suppliers. It took years to recover, but the economy did start showing signs of growth. McKinsey&Company’s 2013 report, The road to 2020 and beyond: What’s driving the global automotive industry, painted a positive picture of the global automotive market with profits projected to reach EUR 79 billion by 2020, up from EUR 54 billion in 2012, with China responsible for 60 percent of profits.

Their 2016 report, Automotive revolution – perspective towards 2030, offered a similar outlook. Overall global car sales will continue to grow, but at about a 2 percent growth rate, down 1.6 percent from the last five years. New market trends such as electric/autonomous vehicles, shared mobility and stricter environmental regulations will disrupt the market with new challenges and opportunities, but what remains constant is that the majority of growth in global automotive sales will be lead by the rising middle class of emerging markets, namely in India and China.

Thousands of vehicles are scrapped in the Chinese government’s efforts to reduce emissions. (Source: The Daily Mail)

Subsequently, China reached record vehicle sales in 2016. However, in April 2017, it recorded the lowest number of sales in the past two years for passenger cars, down 3.7 percent from 2015. This follows a national sales tax rise early in 2017 to 7.5 percent, coupled with a general decrease in demand for cars as consumption is reaching a plateau. Moreover, China’s sales tax will increase again to 10 percent in 2018.

India’s Booming Automotive Industry

Unlike China, India’s automotive market shows little signs of slowing down. India is now the world’s fastest growing economy as their GDP is projected to increase by 7.2 percent from 2017 to 2018. Their middle class is estimated to triple by 2025, reaching 89 million households.

The government of India is looking to the automotive industry to lead India’s economic growth, as outlined in its Automotive Mission Plan for 2016-2026 and “Make in India” initiative. Under such plans, the government will work towards creating an additional 65 million jobs in the automotive market and a 500 percent increase in vehicle exports by 2026.

A full parking lot of Renault cars reflects the massive automotive market in India. (Source: The New York Times)

It’s no surprise that Foreign Direct Investment (FDI) is pouring in. From 2000 to 2016, India’s automotive industry alone attracted USD 15.79 billion in FDI. For investors, India’s growing middle class of consumers is as attractive as their vast and low-cost labor.

POSCO Maharashtra in India

POSCO Maharashtra is one automotive supplier that is echoing the growth of the Indian automotive market. Their 2Q17 unaudited earnings report showed significant growth from just a year before in 2016. The reported revenue was USD 331.7 million, compared to USD 174.7 million in 2016. The company’s operating profit was USD 32.6 million, up from USD 3.5 million in 2016. Finally, their net profit was USD 22.9 million, another significant increase from USD 15.9 million in 2016.

*Earnings figures were converted from Korean won to U.S. dollars using August 22, 2017, exchange rates.

The POSCO Maharashtra Plant in India

In May of this year, POSCO Maharashtra signed a MoU with Essar Steel to supply 1.1 million tons of flat steel products during the 2017 fiscal year. This is the second year of partnership between the two companies, but the volume of steel POSCO Maharashtra will supply is 30 percent higher than in 2016.

The growing business reflects the work philosophy of POSCO Maharashtra employees: “If [we] supply quality material, they’ll come back again and again. So that’s what we’re doing right now. Although our products might be priced a bit higher in the Indian market, we are supplying quality material and our customers continue to be loyal because they understand that value.”- Chetan Waghchoure, sales representative for POSCO Maharashtra. Read the full interview here.

POSCO Maharashtra’s Chetan Waghchoure during an interview with The Steel Wire

POSCO Maharashtra is taking full advantage of the thriving automotive industry in India and continues to expand its business by reducing production and inventory costs, increasing performance and efficiency and planning to incorporate AI technology into their future production processes.

Market indicators point to India to drive the profitability of the automotive industry. India’s growing consumption of vehicles, open business environment and vast labor force will continue to attract foreign investment and new businesses. The best part is that India is not even close to being fully developed, meaning brighter prospects for future growth and good news for manufacturers and suppliers.

POSCO continues to contribute to the growing steel industry by producing large amounts of high-quality steel for its partners, and has its sights on non-steel businesses as well. The continued efforts to stay ahead of global trends, provide solutions to partners as well as to produce the highest quality steel are what keep POSCO in the top ranks.

Here are 6 more memorable highlights from 2017 so far.

1. POSCO’s First Lithium Extraction Plant

On February 7th, POSCO opened its first lithium extraction plant, PosLX at Gwangyang Works in Korea. It is expected to produce 2500 tons of lithium carbonate per year, making POSCO the first company to produce lithium on a commercial scale in Korea.

The opening ceremony of PosLX

Traditionally, the process of extracting lithium takes 12 to 18 months. In comparison, POSCO’s new, sustainable technology only requires as little as 8 hours up to a maximum of one month to extract high-purity lithium. The materials produced at PosLX will supply LG Chem, Samsung SDI and POSCO ESM, a subsidiary company that specializes in cathode materials for secondary batteries.

2. Leading Supplier of Electric Steel Plates

On February 20, POSCO opened its newly-expanded, non-oriented silicon steel facility for producing environmentally-friendly electric vehicle drive motors. The expansion increased POSCO’s output of non-oriented silicon steel (Hyper NO) from 80,000 to 160,000 tons, making POSCO the leading supplier of electric steel plates both domestically and internationally.

POSCO CEO Ohjoon Kwon at the non-oriented silicon steel facility (Source: MK News)

The demand for environmentally friendly vehicles is growing, and with it the demand for top-grade electric steel plates. In 2020, the projected demand for such parts will reach more than 1 million tons. POSCO has its eyes on the market, aiming to develop high-quality, customized materials for electric vehicle manufacturers.

3. Release of POSCO’s GIGA STEEL Ad

In March, POSCO ran a nationwide TV ad for POSCO GIGA STEEL in Korea to showcase the superiority of POSCO’s next-generation automotive steel material. This is the first time POSCO put out a specific steel product and not the company brand at the forefront of an ad campaign. In order to convey the strength and light weight of the product, the advertisement included a strength test comparing GIGA STEEL to aluminum. The test proved POSCO GIGA STEEL to be over three times stronger than aluminum.

4. Commercialization of a High Manganese Steel Production Technology

In April, POSCO commercialized the world’s first high manganese steel production process technology using molten manganese ferroalloy (FeMn). This technology takes place at PosLM (POSCO Liquid Manganese), a heat insulation facility that can store high-purity molten ferromanganese alloy. The technology boosts profitability by reducing the processing time by half and increasing production efficiency by more than 10 percent using a non-solid type of molten iron.

Hot Liquid Steel

5.  Completion of 7CGL for POSCO GIGA STEEL

On April 26, POSCO completed the world’s first steel plate factory specifically for GIGA STEEL. 7CGL, which has an annual production capacity of 500,000 tons, is attracting attention as the world’s first factory to produce both GA (hot-dip galvannealed) and GI (hot-dip galvanized) steel plates among 1.5-class automobiles. POSCO secured its position as a global automotive steel plate maker through the completion of 7CGL, its 12th steel plate factory. POSCO has been able to reduce investment costs and secure cost competitiveness by carrying out both factory design and construction internally.

Opening ceremony for 7CGL (Source: Business Korea)

6. Completion of POSCO’s Steel Forming Laboratory

On May 11, POSCO completed their Steel Forming Laboratory at the POSCO’s Global R&D Center in Songdo, Korea, built to provide customized support for partners. POSCO is building a one-stop development system from technology development to production verification. At the core of this program is the advanced customer-oriented research infrastructure that can evaluate products in advance and develop leading technologies in a production environment similar to that of POSCO’s customers. This development will further strengthen POSCO’s solution marketing 2.0.

The Steel Forming Laboratory at POSCO’s Global R&D Center

Despite a difficult market environment, POSCO continues to provide high-quality steel products for its partners through close cooperation and customized research. Additionally, POSCO’s expansion into non-steel sectors will not only bring added value, but help POSCO stay ahead of the changes the fourth industrial revolution will bring.  

Q1. Despite several market challenges heading into 2016, POSCO Maharashtra has become POSCO’s most successful subsidiary. What would you credit with this quick turnaround?

Manish Kochar: At the beginning of last year, there were many import restrictions imposed by the government of India, and at the start of 2015 a lot of people were not sure whether we could even survive. We were merely a POSCO group company that was buying from POSCO Headquarters and selling in India. But we quickly adapted to the situation.

Because of the high costs of materials, we began to develop partnerships with local mills. Our Quality Assurance and Product Departments worked with these local mills to improve standards and help guarantee the same quality that our customers expect. This also reduced our inventory levels, which in turn reduced our inventory costs.

This was a very good move and I appreciate that management had the foresight and ability to make these collaborations possible. Otherwise, our journey would have been very different.

[clickToTweet tweet=”‘We worked with local mills to improve standards and help guarantee the same quality that our customers expect.'” quote=”‘We worked with local mills to improve standards and help guarantee the same quality that our customers expect.’ – Manish Kochar” theme=”style6″]

Chetan Waghchoure: First of all, we were able to succeed because of the direction from management. We have clearly defined strategies for each segment in terms of targets, market, and pricing, which are constantly under review. Because of this, we have been able to make improvements in production, logistics, and quality.

From 2015-2016 we were barely producing 80-90 thousand tons per month, but today we are reaching over 140 thousand tons each month. Additionally, we were able to cut the production process from two months to just 30 days. And, we made an effort to move away from small market segments where the prices are low and competition is very high. Instead, we changed our focus to producing high-quality products for auto, home appliances, and panels. This move gave us higher margins and more market share.

“Increasing the operating ratio helped reduce the operating cost and that indirectly affected our profitability.” – Ajay Telrandhe, Quality Assurance

Ajay Telrandhe: In addition to what Chetan and Manish have said, in the last 3-4 months, we have increased the operating ratio and plant utilization. While we were operating at around 70-75%, now it’s at almost 90%. Increasing the operating ratio helped reduce the operating cost and that indirectly affected our profitability. Because of this, we were able to enter into more non-auto segments and produce more exports.

Q2. POSCO prides itself on producing the most advanced, high-quality steel around the world. How important is quality at POSCO Maharashtra and how are you able to maintain quality standards with such rapid growth?

Chetan Waghchoure: If I supply material at a cheaper rate, the customer will come back one time. But if I supply quality material, they’ll come back again and again. So that’s what we’re doing right now. Although our products might be priced a bit higher in the Indian market, we are supplying quality material and our customers continue to be loyal because they understand that value.

“If I supply material at a cheaper rate, the customer will come back one time. But if I supply quality material, they’ll come back again and again.” – Chetan Waghchoure, Sales

Ajay Telrandhe: POSCO Maharashtra has very advanced inspection systems. From surface inspections to mechanical testings to calibration – those are all constantly maintained so that we can ensure delivery of uniform products to our customers.

Also, in the next few months, we will be adding an AI system for zinc coating. Maintaining a consistent coating weight for automotive steel is a highly specialized process and prone to error. By integrating advanced AI technology, we will be able to reduce waste and ensure consistency.

[clickToTweet tweet=”‘…if I supply quality material, they’ll come back again and again.’ – Chetan Waghchoure” quote=”‘If I supply quality material, they’ll come back again and again.’ – Chetan Waghchoure” theme=”style6″]

Manish Kochar: One of the most important ways we are able to offer higher quality control is in the way we manage our supply chain for automotive customers. There are three to four automotive hubs in India and for all 3 locations, we have dedicated POSCO-owned service centers. Before POSCO began collaborating with the local mills, there was no integrated logistics plan so mills in one part of India were supplying products on the other side of the country. Now, India is a big country so it was impossible for them to manage any type of dynamic, just-in-time delivery supply chain. Because of POSCO’s superior supply chain management, we have created a very big gap between us and our competitors.

Also, nobody works in as much detail as POSCO does. At POSCO, we develop specific steel solutions for each product based on how the part will be used and in what capacity. In addition, we have separate application codes defined in our system that prevent us from providing materials that are not specifically designed for that part. Most of our competitors cannot do that, they simply provide similar materials for each part.

For global companies that value quality, POSCO is always their first choice.

Q3. How has POSCO’s Solution Marketing helped customers improve production processes and manufacture better products?

Ajay Telrandhe: We recently worked with Tata Motors and Royal Enfield to develop new fuel tanks. Tata Motors’ previous fuel tanks had a short life cycle and were prone to rusting with leakages while Royal Enfield was using galvanized electroplated material for their fuel tanks that was very expensive and had to be imported as it was hard to procure in India. So, POSCO worked with both companies individually and came up with a GA product with a chrome pre-razing coating. By making these adjustments in the production process, both companies have seen much better results with reduced costs and inventories.

“We are currently the only supplier in India who can provide galvanized steel at 0.48cm.” – Manish Kochar, Sales

Manish Kochar: One successful example was the time we worked with one of our customers to reduce the thickness of their Extra Deep Drawing (EDD) galvanized steel product for Dish application. At that time everyone was using 0.6mm thick galvanized steel, but the customer wanted it reduced to around 0.5mm. We met with our Quality Assurance Department with the goal of reaching 0.48-0.50mm. After planning, development, and testing we found that in addition to the reduction in thickness there was around a 10-15% reduction in weight as well – with no loss in stability. We are currently the only supplier in India who can provide EDD galvanized steel at 0.48mm.

Q4. How does POSCO Maharashtra plan to continue its success into the future?

Chetan Waghchoure: The Indian auto market is not yet saturated and it is still growing.  We see constant growth in this segment and expect to see new investment opportunities with many of our global clients including electric carmaker Tesla, KIA Motors, BMW, and SAIC-China. Having developed strategic locations throughout India has given us an advantage and helped us have an upper hand in the competitive automotive steel market. We are prepared and expecting continued growth in the automotive steel market.

POSCO Maharashtra is confident in the quality of products they can provide to customers as India’s auto industry expands.

Ajay Telrandhe: As India’s economy continues to grow, all of the global players will also have a presence in India. Because of this, the demand for steel will continue to rise. At POSCO Maharashtra, we are preparing for this opportunity. We will continue to develop our galvanizing line in order to meet increased demand while continuing to focus on delivering the highest quality products to all of our customers.

Manish Kochar: The government of India announced its National Steel Policy in April 2017 that focuses on improving per capita steel consumption in India both in the short and long term. The demand for automotive & home appliances is increasing steadily every year. POSCO is already an established brand worldwide, and more and more global companies entering the Indian market want to work with POSCO. As such, we will continue to provide a very high standard of quality for our customers.

[clickToTweet tweet=” ‘The global companies coming to India want to work with POSCO.’ -Manish Kochar” quote=” ‘The global companies coming to India want to work with POSCO.’ -Manish Kochar” theme=”style6″]

We have developed good relationships with local mills and consistently delivered high-quality products to our customers. We don’t see any issue with an increase in production and we don’t expect any gaps in quality as demand for POSCO steel continues to increase.

This interview was conducted as POSCO Group University held its Global New Leader Program in Korea. The Global New Leader Program brings together management from POSCO Family subsidiaries from all around the world so they can collaborate, share ideas, and develop new skills. This is just one global leadership program that POSCO organizes for its global employees. Find out more about POSCO’s global operations in our interviews with POSCO TCS in Thailand and POSCO China.

Don’t miss any of the exciting stories from The Steel Wire – subscribe via email today.

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.

Until recently, POSCO-IDPC, a steel processing center in the Bawal Industrial Area near Delhi, India, experienced such setbacks, but thanks to their development of new transportation methods, they have been able to resolve many of these issues.

Taking care of business

Established in 2007, POSCO-IDPC supplies steel products of POSCO Headquarters, POSCO-Maharashtra and POSCO-ESI to its major customers in Northern India, including carmakers Maruti Suzuki and Honda Cars India.

Originally, the company imported steel coils from POSCO Headquarters through Kandla, a state-managed port, as it imposes the lowest customs fees and transport charges on imports. However, there were often a number of problems with the coils due to careless handling, as well as rust damages caused by chemical products or fertilizers which were placed near the coil yard. Additionally, demurrage charges, fees payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed, were common.

In an effort to solve these problems, POSCO-IDPC established an office in Kandla Port in 2012, staffed by employees capable of handling the existing issues. As a result of their efforts, the company was able to reduce the losses caused by coil damages and rust, which had amounted to $20,000 annually.

However, there were still roadblocks ahead.

A bump in the road

According to India Today, a report commissioned by the Transport Corporation of India Ltd (TCI) stated that the trucking sector contributes 4.5 to five percent to India’s GDP and is an integral component of the transportation sector. However, poor infrastructure has led to numerous traffic jams on highways, delays at toll plazas and accidents, costing the Indian economy nearly $600 million in lost truck-operating hours annually.

Transporting from Kandla Port, located a lengthy 1,200 kilometers from POSCO-IDPC, by truck gave rise to a number of such problems, resulting in delays and increased carrying charges. During the rainy season, problems escalated as roads worsened and coils kept in the port were damaged by flooding waters.

Smooth sailing at Mundra Port

To avoid these setbacks, POSCO-IDPC searched for another port where railway transportation was possible. Mundra, a privately owned port located 75 kilometers from Kandla, had a complete system in place, managing every aspect from storage to railway transportation. However, compared to Kandla Port, it was costlier, and coils were more likely to be damaged due to more frequent handling.

Through continuous negotiation with Mundra Port, POSCO-IDPC was able to settle on a reduced transportation cost, while securing superior transportation quality.

Nowadays, coils unloaded at Mundra Port are piled in the yard and loaded into containers specifically designed for handling steel coils. The containers are then transported to the station nearest to the POSCO-IDPC plant by railway and then delivered to the customer by truck.

Steering clear of damages

Furthermore, the company enhanced the transportation method so that clients could receive the product in its original state. To avoid accidents and product damages due to poor road conditions, POSCO-IDPC altered its packing techniques by connecting pallets of loaded products and tying multiple bundles of coils together.

In doing so, the quality of coil transportation was remarkably improved resulting in almost zero claims, and the company was also able to reduce actual expenses on transportation and insurance. After 7 months of operation from June 2014, POSCO-IDPC saved $290,000, excluding insurance merits. If POSCO-IDPC imports 80,000 tons this year, it will save a total of $600,000.

With an annual steel processing capacity of 200,000 tons since the establishment of its second plant in April 2013, POSCO-IDPC expects an increased growth through consistent sales increases, and hopes to expand its annual sales to 220,000 tons in 2015. On top of that, POSCO-IDPC will continuously endeavor to achieve maximum customer satisfaction with the best transportation quality as an admired coil center of one of the world’s leading steelmakers.

Preemptive actions to client demands with steel industry know-how

With the know-hows gleaned from Korean steel industry, the foreign branches of POSCO had successfully stabilized the production process in their beginning stage abroad. Ever since their initial launch, they have been establishing their quality control system. As a result, they are now capable of providing preemptive responses to client demands, leading them to receive positive assessment.

POSCO-Mexico focuses on quality stabilization activities

Established to secure automobile companies in North America where automotive steel demand is increasing in a rapid pace, POSCO-Mexico has been concentrating on quality stabilization ever since its launch in November 2013. As POSCO-Mexico was successful in equalizing the quality of their products, they were able to further improve the efficiency in machining operations. Also, they were able to earn a positive reputation from North American automobile companies by actively providing the products and technology information that client are in need of.

POSCO Guangzhou branch enhances operation stability and production costs

Ever since their initial operation, POSCO Guangzhou branch has been putting their full effort on enhancing their automotive steel sheet quality, packaging layers and more. This endeavor brought improvements in operation stability and production costs. As POSCO Guangzhou branch continues to reinforce technology through dynamic collaboration with TSC staffs in China, they will contribute to further augmentation of POSCO’s global power.

US-UPI, successful management innovation through various improvement activities

UPI in the United States is an excellent example of successful innovative management achieved by all employees working together as a unity. With harmony between labor and management, the employees of UPI conducted a variety of improvement activities such as receiving external consulting for an effective restructure process. As they work on reinforcing their production efficiency, sales of high-quality steel and major reorganization, the current management structure of UPI is in the normalization process and such lucrative experience instilled a sense of pride to the UPI employees.

Krakatau POSCO‘s effort on management stabilization, POSCO-Maharashtra’s activities on production stabilization

In addition, due to the initial nature of the device industry, it is inevitable for Krakatau POSCO, POSCO-Maharashtra and some other branches to face deficits but it is expected that their management will be stabilized in short time. Actually, Krakatau POSCO has stabilized their production system as they reached the normal activity point in last May and they are now planning on expanding their sales structure until this upcoming December. POSCO-Maharashtra will also continue to engage in aggressive approaches toward their goal by the fourth quarter of this year.

Distinctive strategy with active client care activities

The foreign branches’ active client care is a distinctive strength of POSCO. POSCO has been establishing foreign branches and practicing consistent marketing strategies in the areas with steel industry growth potentials such as China, Southeast Asia and more. Not only stably providing products of excellent qualities, but also they have been emphasizing their differences by maintaining a total service system, including technology and logistics that clients ask for.

POSCO-CCPC’s sales manager, Tae-min Huh said, “As a sales manager, it feels most rewarding when I successfully make a new business relationships after constantly meeting local clients such as DFSK and convincing them to sign a new contract with us. Especially, when I hear from our client companies that our material supply and quality stability have improved further, I feel very satisfied. As our marketing strategy strictly focuses on the perspectives of the clients and listen to their stories with attention, we were able to create good relationships with the Chinese clients”.

Excellent global human resource is the driving force of POSCO

POSCO’s outstanding global human resource is another driving force of foreign branches that bring positive outcomes. In terms of overseas investment, POSCO commands a strict localization strategy.

POSCO provides professional training that includes leadership and organizational management to global employees those who are selected from each branch every year. Employees dispatched to the branches from the head quarter put extra efforts to learn the local culture and working method for effective processing. Also, as the foreign branches process their business under POSCO’s global standards, the foreign branches in various parts of the world maintains a global reputation for their work methods.

Tabata Yuki, who has been working as a sales director in POSCO-JEPC for five years, said, “At the beginning, I felt unfamiliar with the Korean working style and organization culture. However, by utilizing my given authority and abilities that I learned from the company, I believe that I was able to make an outcome in new client development despite of my relatively short career history”. Also, he added “In my opinion, POSCO’s differentiating factor with competing companies’ sales manager comes from actively sharing their global mindsets and knowledge through constant communication”.

Anish Aora, working in India POSCO-IDPC for seven years now said, “When I first joined the company, I faced a number of troubles processing the work due to the cultural differences between Korea and India. However, now I understand Korea and POSCO through constant communication with employees, career education and several visits to Korea”. Also, he added that POSCO’s good performances among the foreign factors are contributed by aggressive business mind toward their goal and standardized work process that applies equally in every foreign branch around the world.

Enhance relationship with the local community with Institution·Facility Support

Outstanding business performances by POSCO’s overseas subsidiaries stem from the formation of fond relationship with the local community. With their thriving business, POSCO’s overseas subsidiaries not only create new job opportunities, but also contribute to growth of local economy. Besides the economic boosts, POSCO has been actively supporting and constructing institutions and facilities in need to develop close relationship with the local community.

For example, China Qingdao Stainless Steel Co., Ltd., has been making generous contributions in the local community by supporting poor local families, nursing centers, scholarships and donations. In July 2014, the local news station extensively covered the company’s contributions. Similarly, POSCO was awarded grand prize in Korean Corporation CSR Award for its Ba Ria-Vung Tau Province Development Project.

POSCO’s overseas subsidiaries have resolved common difficulties in production, quality, and sales that often occur in the initial phase of the production and are currently being stabilized. These subsidiaries aim to promote win-win strategy for all parties involved and develop the local community.

A total of fourteen trainees from machinery, electricity and other sectors took OJT sessions for cold rolling process, including the general educations about PCM and CAL equipment processors, from POSCO’s global cold rolling-plating support group. With the program’s completion on August 23, the trainees will head back to POSCO Maharashtra to display their abilities as POSCO’s valuable engineers.

Their experiences from the curriculum at Gwangyang Steelworks are expected to be fully utilized once the construction of the cold rolling plant in India is finished in June 2014. When the plant is put into full operation, POSCO Maharashtra would become the biggest automotive steel sheet manufacturer in the region, with the annual production capacities of 450,000 tons for CGL, 1.8 million tons for PCM and 1 million tons for CAL.