The trends in POSCO Group’s flagship business area are explained by experts in an easy-to-understand manner. In Part 4, we review the issue concerning “all-solid-state batteries,” which are expected to be next-generation batteries, with Principal Researcher Jae-beom Park at the POSCO Research Institute.

Batteries are mainly divided into primary and rechargeable batteries. Primary batteries, including dry cells and mercury batteries, cannot be recharged after use. On the other hand, rechargeable batteries can be recharged and used multiple times, so they are more environmentally friendly and economically efficient. There are many types of batteries, but the most commonly used rechargeable battery is the lithium-ion battery (LIB).

Compared to other rechargeable batteries, lithium-ion batteries are used in various applications that take advantage of their superior features in all aspects, including lifespan, ease of charging, discharge rate, and costs. In particular, they are widely used in electric vehicles and mobility devices that require long operating range on a single charge due to their high energy density.

However, even LIB, which is considered the most ideal commercial rechargeable battery to date, requires continuous improvement and supplementation in terms of energy density, price, and stability. To understand why, it is necessary to look at how LIB works.

The four core components of an LIB are cathode material, anode material, electrolyte, and separator. Among them, the electrolyte acts as an important medium that helps lithium ions move smoothly between the anode and cathode materials. Since one of the main components of the electrolyte is a flammable organic solvent, there is a risk of fire or explosion in high-temperature environments or external impact situations. To solve this problem, the performance of materials such as anode and cathode materials or electrolytes can be improved, but the ultimate solution is to change the battery type. Post-LIB or next-generation batteries, such as all-solid-state batteries, lithium-sulfur batteries, and sodium-ion batteries, have emerged as solutions, and all-solid-state batteries, which are called dream batteries for dramatically improved energy density and stability, have recently received the spotlight worldwide.

The biggest difference between all-solid-state and lithium-ion batteries is the form of the electrolyte. An all-solid-state battery replaces liquid electrolyte in an LIB with a solid powder. The replacement not only changes the shape but also other LIB materials significantly. It eliminates a separator that prevents direct contact between the anode and cathode during the movement of lithium ions, as the solid electrolyte acts as a separator.

Stability

All-solid-state batteries have many advantages, and stability is the leading example. Since the electrolytes in LIBs are made of flammable organic solvents (liquid), there is a high risk of fire or explosion when the separator that blocks contact between the anode and cathode materials melts due to heat or is damaged for various reasons. However, the solid electrolyte of an all-solid-state battery acts as a separator and more effectively blocks contact between the anode and cathode materials. Therefore, it reduces the risk of fire or explosion. Moreover, the risk of leakage or oxidation due to temperature change or external impact is lower. This means reduced maintenance costs due to excellent ease of use and durability.

Higher energy density

Improved safety helps simplify battery external cases and cooling devices and naturally achieves higher energy density. If the cooling system components can be minimized, the remaining space can be used for battery cells. It will allow improved energy density per battery pack. Moreover, lithium, which has the largest energy capacity among the candidates as an anode material, can theoretically increase the energy density by up to nearly 10 times compared to conventional graphite-based anode materials. Therefore, if we can solve the safety problem of the lithium metal anode material, which is called the ultimate, next-generation anode material, and commercialize it, we can expect to dramatically improve energy density.

Coping with temperature change better

Another big advantage of changing liquid electrolytes to solids is their lower sensitivity to temperature, which allows them to operate over a wider range of temperatures. Conventional lithium-ion batteries mainly operate smoothly between -10°C and 40°C because the ion conductivity* decreases significantly at low temperatures below -10°C, and the risk of thermal runaway increases at high temperatures. On the other hand, all-solid-state batteries operate without problems in a wide temperature range of -40°C to 100°C. Therefore, they can improve the risk of battery discharge in winter or fire caused by high temperatures and can also significantly reduce the need for cooling devices to dissipate heat.
*Ionic conductivity: The degree to which ions contribute to equivalent electrical conductivity in an infinite dilution state

Simplified processes and cost reduction

While conventional lithium-ion batteries have a monopolar structure in which a cell has one electrode, all-solid-state batteries can be converted into a bipolar structure in which multiple electrodes are connected in series in a cell. The bipolar structure increases the voltage of the battery by stacking multiple electrodes in a cell, thus increasing the output. Moreover, we simplify processes, increase space utilization, and reduce costs by minimizing the BMS* for external material cooling systems.

*Battery Management System (BMS): A system that monitors the battery status and controls it to maintain the optimal conditions for use

Solid electrolytes used in all-solid-state batteries are largely divided into organic and inorganic types. The sulfide-based type is most likely to be commercialized for electric vehicles, and has attracted the attention of many companies. Sulfide-based materials are relatively soft and form a wide interface* between the electrode and electrolyte, resulting in high lithium ion conductivity.

Various structures depend on the presence of a crystalline structure, even within sulfide-based materials. In particular, solid electrolytes with a structure of LGPS (Li₁₀GeP₂S₁₂) or argyrodite (Li₆PS₅CL), a rare sulfide mineral containing germanium, are known to be able to implement ionic conductivities similar to or higher than the ionic conductivities of general liquid electrolytes (5–10 mS/cm).

*Interface: The boundary between two spatial regions occupied by different substances or physical states of matter

※ Ionic conductivity : LGPS (Li₁₀GeP₂S₁₂) 12~25mS/cm, Argyrodite(Li₆PS₅CL) 2~12mS/cm

Many companies are actively conducting R&D to create a more perfect all-solid-state battery. While it varies by company, ternary cathode materials* are likely to be the most active cathode material. For anode materials, a transition has occurred from the commonly used graphite-based materials to silicon-based materials, and eventually to lithium metal anodes, which offer higher energy density per volume and weight. Therefore, the material composition of an all-solid-state battery with high commercialization potential is the ternary cathode-sulfide solid electrolyte-lithium metal anode.

*Ternary cathode material: A cathode material in which other elements are added to lithium cobalt oxide (LCO), which is mainly used as a cathode material, for a total of three elements. It is divided into nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA).

Leading companies have already announced plans to commercialize all-solid-state batteries by 2027, and they plan to mass produce them by 2030 at the latest. The fact that the original patent related to the composition of sulfide-based argyrodite solid electrolyte, which is considered to have the most commercialization potential, will expire in 2028 is also expected to affect the timing of commercialization.

The University of Siegen in Germany filed a PCT patent application for a sulfide-based source patent in 2008. The patent was later transferred to another company, which now holds the intellectual property rights. When the patent expires in 2028, 20 years from the date of application, many companies are likely to begin mass production of solid electrolytes.

Some companies are also preparing semi-solid-state batteries. Semi-solid-state batteries use gel-type electrolytes that are an intermediate form between liquid and solid. They are being developed to complement the shortcomings of liquid and solid electrolytes and leverage their advantages. Since they can utilize most of the processes of conventional lithium-ion batteries, the technology can be considered a stepping stone before the full-scale transition to all-solid-state batteries.

In addition to technical issues to overcome, such as low ion conductivity and high interface resistance, other important challenges include securing mass production and price competitiveness similar to that of lithium-ion batteries.

The price of the solid electrolyte for all-solid-state batteries is USD 1000/kWh, and excluding other materials, the price significantly exceeds the current price of lithium-ion batteries. This is because lithium sulfide, the core of solid electrolytes, is currently manufactured in labs and pilot lines, and the economy of scale, where the average prices drop as production increases, has yet to be realized.

However, the hope is that, except for some electrolytes that contain rare earth elements such as germanium, the raw material price of general solid electrolytes is around USD 10/kg. In other words, if the production volume can be increased with improved processes, the market price is expected to drop to USD 30/kWh. Reducing the price of solid electrolytes and lithium sulfide and overcoming technical issues are important prerequisites for popularizing all-solid-state batteries.

To secure competitiveness in the solid electrolyte business, a key material for all-solid-state batteries, POSCO Group took a 40% stake in Jeongkwan Co., a display materials and parts company, established POSCO JK Solid Solutions as a joint venture in February 2022, and completed the construction of a product plant capable of mass producing 24 tons of sulfide-based electrolytes per year. POSCO JK Solid Solutions is currently preparing for a gradual expansion to eventually increase production volume to 7,200 tons and is conducting tests on all-solid-state battery products with key customers.

Overseas, POSCO invested equity in ProLogium Technology, an all-solid-state battery manufacturer established in Taiwan in 2006, and has expanded the supply chain for all-solid-state battery materials after signing a joint research agreement. Moreover, it is considering various business plans to secure the supply chain for lithium sulfide (Li2S), a key raw material for sulfide-based solid electrolytes.

POSCO Group also has the competitiveness to mass-produce lithium metal cathode materials, which are as important as solid electrolytes in all-solid-state batteries. Since it owns a salt lake in Argentina with high purity and low impurities, it has the advantage of increasing the purity and removing impurities using lithium as an anode material. POSCO is recognized as having the world’s top level technology for lithium purification.

Lithium metal manufacturing requires an ultra-thin and wide production process to economically apply to rechargeable batteries for electric vehicles. The roll-to-roll process, POSCO’s original technology accumulated through rolling and plating processes, is ideal for making the lithium anode ultra-thin and wide. To secure differentiated competitiveness, POSCO plans to apply the process to lithium metal production. It is currently providing samples and conducting tests of lithium metal products using the electroplating method.

POSCO Group is building a full lineup by concentrating its differentiated technologies to secure competitiveness in raw materials for all-solid-state batteries, considered representative next-generation batteries. It plans to continue its efforts to create new added value by responding to the changing global market environment.

The ideas of “Smart Cities” are nothing new ⁠— they have been around for a while now as the future of urbanism. POSCO has been tapping this relatively uncharted territory through its vision for ‘Mega City.’ Still, crucial questions remain: what exactly are smart cities? And how would smart cities transform the landscape of the steel industry?

Asian Steel Watch, the biannual English journal specialized in the Asian steel industry, can provide insights into these questions. ASW vol. 7 features an in-depth study that addresses everything from the very definition of smart cities to how smart cities are helping to address urban issues and create new market opportunities. POSCO Newsroom reports:

l Why Smart Cities?

Urbanization has been progressing rapidly worldwide. The number of megacities with more than 10 million inhabitants is projected to rise from the 14 noted in 1995 to 46 by 2035. Increasing numbers of people are moving from rural to urban areas. The global share of the urban population is expected to rise to 62% by 2035, up from 45% in 1995.

Massive centralized cities are advantageous in terms of economic efficiency and effectiveness since production, consumption, education, and cultural development can all take place within a single area. For this reason, urbanization has been a natural response in many industrialized countries as a means to increase returns from investment and for sourcing talent. However, the rise of mega-cities and increasing population density have resulted in several threats to the quality of life of city dwellers.

Ironically, the industrial complexes, high-rise buildings, and transport infrastructure that were intended to increase public convenience have triggered several issues such as excessive energy consumption, environmental pollution, public insecurity, and income disparities. This in turn has threatened the quality of life of urban dwellers and diminished the sustainability of cities. Smart cities aim to address some of the issues stemming from rapid urbanization and high population density by using scientific and information technology to forge a more sustainable urban environment.

l Development of Smart Cities

The concept of smart cities emerged in the mid-1990s as the internet and information infrastructure became widespread. America Online (AOL) first suggested the concept of a smart city in which services are provided through a network. With the advent of the internet, telecommunications companies began offering new service models and testing pilot projects. The notion was given increasing attention when a series of smart city plans was formulated for megacities, including Amsterdam Digital City in 1993, Helsinki Arena 2000 in 1996, and Tokyo Smart City in 1998.

Smart cities began to spread during the 2000s when their commercial value was recognized. With the expanding popularity of the internet, various projects were planned in Europe and the US. Following the announcement of IBM’s Smarter Planet strategy, global companies including Cisco and Siemens actively entered the smart city field, which began to be regarded as an industry. In South Korea, the u-City concept was introduced in 2003. The Ubiquitous Cities Act was legislated in 2008 and applied to several new cities, including Hwasung and Dongtan.

After 2010, major Asian cities, including some in China and India, released hundreds of smart city plans and global smart city projects gained momentum. With the rise of the Fourth Industrial Revolution and related technologies such as AI, IoT, and big data, bold government policies and corporate innovations are on the rise, exemplified by Google’s Sidewalk Labs in Toronto and Alibaba’s City Brain model in Hangzhou. A smart city can be defined by its purpose or its means. So far, ‘smart city’ has been generally understood according to its purpose. As multiple definitions were released by diverse organizations and institutions, there has been some confusion surrounding the concept of a smart city. According to a report by the al Revolution and related technologies such as AI, IoT, and big data, bold government policies and corporate innovations are on the rise, exemplified by Google’s Sidewalk Labs in Toronto and Alibaba’s City Brain model in Hangzhou.

l What Is a Smart City?

A smart city can be defined by its purpose or its means. So far, ‘smart city’ has been generally understood according to its purpose. As multiple definitions were released by diverse organizations and institutions, there has been some confusion surrounding the concept of a smart city. According to a report by the International Telecommunication Union (ITU) in 2014, there were 116 definitions of a smart city. Five keywords can be extracted from these various definitions, however: 1) competitiveness; 2) intelligence and informatization; 3) eco-friendliness and sustainability; 4) quality of life of inhabitants; and 5) infrastructure and services. However, some argue that defining a smart city according to its purpose is not helpful for solving urban problems due to the differences in their social, cultural, and industrial backgrounds.

For this reason, a new concept of a ‘city as a platform’ has been gaining ground, meaning that cities should serve as a means or platform for troubleshooting. The concept of a ‘smart city as a means’ relates that customized solutions can be created to address urban issues economically and effectively by activating the upper layers of data and service in a structure consisting of infrastructure, data, and service layers, as seen in Figure 4. Many cities and local governments have selected low-cost and high-efficiency methods based on software and data to ensure sustainable city management. Through a smart city competition open to local residents, they collect ideas to address social issues, verify the outcomes of pilot projects, and spread them to other cities.

l Differences in Smart Cities by Region and Major Keywords

Smart city projects first emerged in advanced nations, including in North America and Europe, but are now rapidly spreading to developing nations. The goals and implementation schemes for smart cities vary by region. Developing nations build infrastructure and new cities using massive infusions of public funds for the purpose of the urban development required for establishing industrial infrastructure and achieving economic growth. In contrast, advanced nations generally aim to address urban issues through ICT, including IoT and big data, by making existing infrastructure intelligent and pursuing technological innovation and open data.

There is one common keyword shared by all types of smart city projects: energy efficiency. Energy efficiency accounts for 36% of stated goals and new urban development accounts for 19% of the goals of smart city projects currently underway across major cities. Energy efficiency is relevant in both advanced and developing countries, while new urban development is generally considered a priority in developing countries.

In the EU and North America, the key agenda is the shift to a low-carbon economy that can help to address climate change. The related goals include making cities more energy efficient and addressing urban issues through innovative technologies and open data. Ideas for solving urban problems have been collected through smart city competitions sponsored by public-private partnerships or with private funds. Pilot projects can be verified through living labs and the outcomes gradually applied. Projects are generally conducted by local governments while central governments provide R&D resources for technological innovation.

However, Asian countries with lower levels of industrialization than advanced countries generally pursue new urban development projects. These projects are commonly large-scale projects to build industrial complexes and fuel urban development while supplementing insufficient resources. Rather than the mitigation of climate change being pursued in the EU and North America, Asian projects are mainly focused on industrial infrastructure to enhance urban competitiveness and bolster the local economy. These urban development projects are led by local governments in collaboration with foreign governments and corporations in an effort to attract foreign investment and technology transfers.

Just like in the cases from the EU and North America, Latin American projects are pursuing energy efficiency, innovative technology, and open data to resolve urban issues. This stems from their early westernization leading to an urban structure where more than 80% of people live in cities. The smart city agenda for these countries consequently includes addressing the heavy concentration of people into large cities and the resulting issues such as public insecurity, traffic jams, and obsolete infrastructure. Diverse smart city projects are underway in Latin America, including in Brazil and Mexico.

l Smart City Policies and Implementation by Country

Many countries and local governments are implementing a variety of support measures for smart cities in an effort to boost competitiveness and improve the quality of life of urban dwellers. India and China are encouraging smart city projects as a means to refurbish national infrastructure and enhance urban competitiveness.

[The diverse efforts being made to support smart cities will change people’s lives, the type of industries, and the value chains for related industries. The source of added value is shifting from hardware to software under this transformation.

[As business models rapidly evolve with the rise of smart cities, the steel industry must think seriously about how the future will be unfold.]

In 2015, the government of India announced its Smart Cities Mission budgeted at INR 480 billion, which aims to develop 100 smart cities through 2022: establishing nine satellite cities with populations of over 4 million; turning 44 cities with populations of 1 to 4 million into smart cities; and establishing 20 small cities with populations less than 1 million. By connecting this mission to the country’s industrial master plan, India is endeavoring to improve industrial competitiveness and sophisticate its infrastructure.

The Chinese central government has been implementing massive smart city projects since 2013. Under the 12th Five-Year Economic Development Plan (2011-2015), the central government announced its intention to invest RMB 300 billion in establishing 320 smart cities by 2015 in the first phase of the project. Ninety pilot cities were selected in January 2013 and 103 more in August 2013. It expanded the existing smart city plan by 2017 with a combined investment reaching RMB 2 trillion in 2025. It is worth noting that China’s smart city projects are not simply about the sophistication of urban infrastructure. They also aim to increase the share of application and utilization of new technologies, including big data, IoT, and cloud computing in connection with the ‘Internet Plus’ strategy.

South Korea is also working on smart city projects through public-private collaborations. Recognizing smart cities as one of the enablers of the Fourth Industrial Revolution, the country has created a Special Subcommittee on Smart Cities under the Presidential Committee on the Fourth Industrial Revolution. In 2018, the Act on the Promotion of Smart City Development and Industry was legislated to support the industrialization of smart cities. Busan and Sejong City were selected as pilot cities for new technologies in autonomous cars, renewable energy, and block chains, as well as to provide incubators for new services.

Meanwhile, US and EU smart city projects are being led by local governments rather than central institutions. Central governments there fund a variety of R&D projects to develop and apply innovative technologies for the realization of smart cities, while local governments select prospective smart cities and formulate relevant strategies. The EU set up the European Innovation Partnership on Smart Cities and Communities (EIPECC) in 2011 in an effort to spread the smart city concept across Europe. In 2013, it announced strategic plans for implementing smart city projects and funded 350 projects conducted by 2,500 partners from the EU-32. In the US, the Obama administration released the US Smart Cities Initiative in 2015 with funding of USD 160 million for R&D projects on 25 new energy and environmental technologies.

As illustrated in the cases of these countries, smart city projects have been implemented in a variety of manners suited to the respective countries’ social and cultural backgrounds and level of industrial development. Both the perception and role of smart cities are rapidly changing, too. Their role is expanding from being simply a means to improve the convenience of citizens to providing a test bed that inspires the emergence of new and disruptive business models.

Both the central government-led smart city projects in South Korea, China, and Singapore and the local government-led projects in the USA, Canada, and Germany are designed to promote the emergence of experimental services based on the Fourth Industrial Revolution, such as AI, AR/VR, blockchain, and IoT, and entail complex policy requirements for technological development, start-ups, and job creation. This means that these projects are not just being managed by teams focused on urban infrastructure, but by diverse teams specialized in technology, industry, and human resources, as well as by councils featuring representatives of civic, academic, and research institute perspectives.

l Development Direction of and Market Opportunities for Smart Cities

Smart cities originated in the digital cities that emerged with the rise of the internet in the 1990s. After a lengthy discussion of smart cities over the last two decades, diverse projects are underway across the globe.

However, these efforts are mostly one-time projects for the purpose of overseeing urban infrastructure more efficiently and improving the management of disasters, safety, parks, and traffic. Such projects have been operated as silos with independent functions: the public sector places orders, companies take the orders and build systems, and citizens make use of the resulting services.

In contrast, recent projects have been implemented through alliances featuring citizens, research institutes, and corporations aiming to create a service model that ensures continuous evolution and development. A black-or-white approach in which the public sector must become the providers of services and the citizens become the receivers must be avoided. Instead, the public sector should participate in creating a platform-based ecosystem and serve as mediators that coordinate any conflicts of interests. They should also operate as facilitators in an ecosystem that utilizes public funds to encourage citizens to undertake challenges and assist in the creation of new business models. Through these experiments, many companies will continue to develop business models and enrich the ecosystem.

This evolution entails a shift in market opportunities in smart cities.

From the perspective of traditional industry, market opportunities in smart cities lie in the construction of urban infrastructure, such as urban development and base infrastructure projects. In terms of market size, public infrastructure, industrial complexes, and residential buildings still account for the lion’s share of the construction market.

It is now time to move on from hardware and take a fresh new approach to emerging opportunities. In the automotive industry, various experiments are being tested, resulting in new business models for electric and autonomous cars. In addition, the energy industry is transforming itself from a massive processing industry into a platform industry with distributed generation.

Future cities will not remain merely an aggregate of hardware comprised of concrete and steel, but a fusion of new and disruptive service models based on infrastructure. In coming years, value will be created not by hardware, but by the software within it. This is also true for the construction and steel industries. Selling buildings or steel is not enough to seize the major opportunities within the smart city market. Related changes are underway. The construction industry is shifting its business model from the one-time construction of infrastructure to its operation and management. When combined with AI, IoT, and other emerging technologies, this will be expanded to more diverse fields and formats.

The steel industry is in the same boat. E-commerce took off just a few years ago, but it is now taking over. Such a change goes beyond the expansion of offline transactions into online distribution channels. Taking into account the characteristics of e-commerce platforms on which various stakeholders interact, steel e-commerce will be developed from steel transactions into a new business model blending finance, logistics, and other manufacturing. This transformation will be connected to the new services and markets sparked by smart cities, eventually expanding the field for the steel industry.

Smart cities are the future of industry. The diverse efforts being made to support smart cities will change people’s lives, the type of industries, and the value chains for related industries. The source of added value is shifting from hardware to software under this transformation. As business models rapidly evolve with the rise of smart cities, the steel industry must think seriously about how the future will unfold.

* This article has been reproduced from Asian Steel Watch, a bi-annual English journal specialized in the Asian steel industry. The original version Vol. 7 (2019.08) can be accessed and downloaded directly from POSRI’s website here.

The bi-annual English journal specialized in the Asian steel industry, which features current issues, interviews with steel guru, and market forecast and analysis.

On this issue, Asian Steel Watch sheds light on corporate citizenship with the cover story titled “Being a Good Corporate Citizen.”

Katherine Smith, Executive Director of Boston College Center for Corporate Citizenship describes what corporate citizenship is and why we need it in her contribution to Asian Steel Watch, “The Corporate Citizenship Challenge.”

Sourav Roy, Chief of CSR, Tata Steel introduces Tata Steel’s determined efforts to practice corporate citizenship in “Tata Steel: A Benchmark in Corporate Citizenship.”

Yang Weon-Jun, Executive Vice President of Corporate Citizenship Office, POSCO explains why POSCO has embraced its new management philosophy and how it is giving shape to the philosophy to become a good corporate citizen in “POSCO’s Corporate Citizenship: Its Meaning and Application.”

Finally, Sooyoung Kim, Professor of Division of Humanities and Social Sciences, POSTECH and Director of POSTECH CCRI (Corporate Citizenship Research Institute) touches on social issues to explain corporate citizenship in “Five Social Issues Facing the Korean Steel Industry: A Corporate Citizenship Perspective.”

In addition, in the Special Report section Zheng Yuchun, Deputy Director of China Steel Development and Research Institute analyzes China’s steel industry in “Restructuring of the Chinese Steel Industry: Challenges and Prospects.”

The Featured Articles section covers smart cities: “The Evolution of Smart Cities and Opportunities for the Steel Industry” and “Shifting Needs for Steel Materials with the Rise of 5G Telecommunications and Smart Cities.”

The Market Trend and Analysis section deals with Vietnam’s steel industry in “Vietnam’s Steel Industry: Characteristics and Steel Demand Forecast.”

The full version of the Asian Steel Watch vol. 7 can be downloaded at POSRI website.

POSCO Research Institute (POSRI) released the 6th issue of Asian Steel Watch (ASW) in December 2018.

This bi-annual English Journal specializes in the Asain steel industry and market.
In this issue, Asian Steel Watch sheds light on global value chains through the cover story titled, “The Steel Industry in the Context of Global Value Chains.”

It features an interview with the OECD Steel Committee Chair Lieven Top and a POSRI special report, “Ten Years after the Financial Crisis, Where is the Global Economy Headed?”

The feature stories of the ASW December issue include closed-loop system for the steel industry as well as steel industry policies under China’s Xi Jinping administration.

In Market Trend and Analysis section, the journal discusses China’s steel scrap supply and consumption through “The China Shock Revisited: Shifts in the Scrap Market Dynamics and Their Ramifications.”

The full version of the journal can be downloaded via POSRI at: https://www.posri.re.kr/eng/

What’s more, manufacturing is no longer a rigid industry that produces uniform, one-sided goods. There is constant communication between customers and businesses for hyper-customization. Not only that, machines and products communicate within a smart factory, and factories exchange data with other factories. Manufacturing is no longer limited to production plants. Moreover, the data generated in the manufacturing process is combined with customer information, and a new service can be created. This combination of manufacturing and services is resulting in creation of added value. In the midst of such drastic change, how can companies stay competitive?

Staying Competitive Through Connection and Convergence

Global manufacturing companies are at the forefront of the 4th Industrial Revolution, as evident in their smart factories. A smart factory collects data generated from the production process using ICT technology, and the system controls all processes from material input to the final product. This has led to flexible production systems with the ability to make various products in one factory or to expand the range of products on the basis of connectivity. Typically, when a company builds a smart factory, it can improve productivity by 20 to 30 percent. A 20 percent improvement in efficiency in the manufacturing sector is a significant, outright increase in global competitiveness.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

Siemens Electronics Manufacturing Plant incorporates robotics, AI and IoT to its production processes. (Source: Zawya)

If the productivity of a plant can be improved through smartization, it is important to also think about connectivity with the ecosystem that exists outside of the plant. Once a smart factory is built, all the data from customer orders to production and delivery are collected in a system via sensors. The customer, product and production data create meaningful connections with each other and provide extensive insight. Examples of added value creation through meaningful connections include hyper-customized goods, data-driven after-sales services to customers and collaboration among companies connected within the smart factory’s external ecosystem. Such advancements will lead greater product quality, production stability as well as shortened delivery times between value chain suppliers.

The Adidas Speed Factory and GE Brilliant Factory are examples of successful smart factories. Adidas customers choose the materials, colors and design of their sneakers, and have them manufactured and shipped within 24 hours in an automated factory.

GE has built a system that can produce all of their widely-diverse products in one factory. When the factory receives customer orders, it operates in a flexible production system which starts with the necessary raw materials, inputted by the automated scheduling system that controls the entire production process, including the final distribution system.

The Future of Manufacturing

Overall, the adoption of innovative changes in the manufacturing sector is likely to progress from lighter industries to the heavy industries, from B2C to B2B sectors. Small plants, quick manufacturing and B2C companies can more readily adapt to rapid technological and market changes. On the other hand, heavy industries like steel and B2B companies with continuous and heavy manufacturing, large production volume and numerous linked companies are likely to be slower to adapt to changes.

It is much more difficult for traditional, heavy industries to adapt to changes. (Source: Live Mint)

For example, adapting to the changes of the 4th Industrial Revolution in the steel industry may be slow, but it is inevitable. What’s more, the long-term adaptation process is more likely to be systematic and deliberate.

As a leading company in the global steel industry, POSCO is pursuing a long-term, systematic “Grand Design” to reinvent its systems to align with the changes of the 4th Industrial Revolution.

First, POSCO built a pilot smart factory in their steel mill, Gwangyang Steelworks, in 2015 that is currently in operation. The company used IoT to collect big data on site, analyze it in real time and build a smart factory that enables optimal control through AI and self-learning. As a result, the Gwangyang Steelworks is reaping the benefits of a smart factory not only in cost reduction but also in improved steel quality, minimized malfunctions and a safe and stable production environment. This year, POSCO plans to expand and apply smart factories to all of its production processes.

POSCO built a smart factory in Gwangyang Steel Mill.

Smart factory application throughout the entire steel mill will improve overall efficiency through a flexible production system. In addition, the factory will be able to respond directly to various customers in real time based on platform construction with customers within the connected ecosystem. The customized characteristics and design of the steel grade for each customer can be applied to production in real time.

SEE ALSO: How Factories Produce Steel – the Smart Way

Ultimately, a smart ecosystem that links manufacturing, processing and distribution with customer input will lead to a new, innovative ecosystem within the steel industry. In Europe, some companies are experimenting with material libraries and steel distribution platforms. The material library displays a variety of materials for customers to see, touch and test the workability and performance of the materials, and get information about the characteristics, design and delivery times through the order platform. Customers can designate the shipment date on the spot. This will be one of the new promising business models that steel and other material companies will strive towards in the coming future.

POSCO’s Grand Design includes a step-by-step approach to smart factories to expand the use of IoT, AI and Big Data in its production systems. To this end, POSCO ICT has developed PosFrame, a standard software platform that collects basic data of production processes and collectively manages, controls and analyzes the information.

POSCO uses its software platform, PosFrame, for data collection and analysis.

When the software becomes standardized and reliable enough to extend to other sectors, it will be applied to other business areas such as energy and construction, as well as to POSCO’s affiliates.

Manufacturers will have to take into account the heavy production environment, the slow industrial change cycle and the complexity of related industries and affiliates to implement the most effective, long-term, systematic upgrades to its production systems. This will result in a brand-new production and business model for manufacturing companies that will align with the new environment of the 4th Industrial Revolution.

Cover photo courtesy of Sputnik International.

The Demographic Cliff

Economic forecaster and author of “The Demographic Cliff,” Harry Dent, says people between the ages of 45 and 49 are typically the heads of families and spend the most money on things like housing, cars and appliances. As populations age, fewer people will make up the prime spending age group of 45 to 49, and there will be a drop in consumption. Dent calls this the “demographic cliff,” or the “consumption cliff”. The world has seen proof of this theory in places like Japan, Western Europe and the U.S., where economic downturn has come at times of a population downturn.

The Japanese stock market crashed in the early 90s, and they have yet to fully recover. (Source: Huffington Post)

Japan, for example, was one of the first nations to experience a demographic cliff in the early 90s. It was also the time when its stocks and real estate prices fell 60 percent. Those prices never rebounded. Since then, the country has spiraled into debt (the world’s highest at 246 percent of GDP) with an increasingly aging workforce and stagnant economy. From 2010 to 2015, Japan’s population decreased by almost 1 million people, and the government is working to prevent the population from falling below 100 million by 2060.

The U.S. 2008 Financial Crisis came shortly after its demographic cliff. (Source: Reuters)

Dent also argued that the American baby boomers of the early 60s peaked in 2007, at their highest spending age, and then the economy experienced a downturn, in the form of the 2008 financial crisis. Since then, the U.S. government has added USD 8.4 trillion in debt. Although the reasons for the 2008 crisis are complex, Dent does prove a point: demographics have a huge impact on economics.

Falling Steel Consumption

As it was with Japan and the U.S., consumption will decrease in industries critical to the steel market. In Japan, steel consumption decreased 81 percent from 1995. According to a report by POSCO Research Institute, construction accounts for 42 percent of total steel demand and the auto industry accounts for 18.5 percent. Decreased spending on homes and cars due to the demographic cliff will have a significant impact on the steel industry. Decreased demand in other industries such as machinery and home appliances will also affect steel demand.

The construction industry will be the hardest-hit by a demographic cliff. (Source: CNBC)

Moreover, manufacturers will be faced with the problem of a shrinking workforce. Those entering the workforce will do so with the burden of sustaining government programs with a larger portion of their paychecks, and employers will start to notice the gaps not only in age but experience and skill as well. With fewer people entering the workforce, employers will be forced to outsource jobs and governments may factor in more lenient immigration policies to fill the gaps.

How can Steelmakers Prepare for the Future?

Although there is no quick solution to the aging population and low birthrates, steelmakers can start preparing for a demographic cliff in two ways. Enter markets with growing populations and introduce smart technology to fill the human labor gap.

In developing countries in Asia and Africa, there are little signs of population and economic stagnation. As those countries invest in their infrastructure and start to consume more homes, cars and appliances, steel will be in high demand, more than those countries can produce domestically.

India’s solar energy industry will lead to an increase in demand for steel. (Source: WLE)

India is one of the countries with a growing population. The government is undergoing numerous projects to boost its economy and prepare for growth, including the project to boost its solar energy market. The Indian government has plans to invest USD 100 billion and 100 gigawatts (GW) of solar capacity for the country by 2022. Steel is a vital part of solar panels and suppliers like POSCO are already partnering with Indian firms to provide the leading material and technology for India to meet its growing renewable energy demand. POSCO also has partnerships in the U.S., Bangladesh, Myanmar, Uzbekistan and more to help each country fill their supply gaps.

In order to fill the domestic labor shortage, POSCO is incorporating leading AI technology, IoT and big data to its smart factories.

It is true that today’s developed nations have reached, or are heading towards a demographic cliff. Japan is a classic example of how detrimental a shrinking and aging population can be for a country’s economy. Governments and industries have to start factoring in demographics to their long-term strategies and plan for a changing future.     

Cover photo courtesy of 24×7 Daily.

Read how these megatrends and the expansion of the four largest steel-consuming industries have driven the growth of the steel industry from the last fifty years and will continue to play a crucial role.

Megatrends and their impact on the steel industry

Future Cities and Changes in Steel Materials

Urbanization is a key driver in the development of the global construction industry and will further accelerate in the future with rapid industrialization in developing countries and the shift to a knowledge economy in advanced countries.

Within the overall shift toward urbanization, many countries are actively crafting policies to develop their cities as globally competitive megacities. There is an increasing number of megacities with over 10 million inhabitants as the competition paradigm shifts from competition among countries to competition among cities.

Also, with a growing sense of urgency in improving the environment in terms of ozone depletion, climate change and energy and resource exhaustion, eco-friendly, green cities are emerging as a new trend.

Lastly, smart cities, characterized by digital transformation and energy revolution, will rapidly expand in the future drawing on the Fourth Industrial Revolution.

Following the ongoing and emerging trends of urbanization and future cities, new advanced steel materials are required to accompany emerging trends and accelerate the development of megatall, eco-friendly and smart products. Conventional steel materials for construction, such as steel bar and section, will improve in functionality with higher strength, thermal conductivity and better sound isolation. They will also be developed as composite materials and new materials such as carbon nanotubes and shape memory alloys will be widely deployed in construction processes. However, as construction costs (labor costs and the use of high-strength steel materials, for example), increase, steel content per unit of construction investment is expected to decline.

A New Mobility Paradigm

Led by high-income earners, lower car prices and improved road infrastructure, the key trend for the automotive industry is motorization. Today, automobiles are no longer just a means of transportation but becoming a major arena for IT competition with the rise of electric vehicles, robotic vehicles and new mobility services.

As a response to global warming, electric vehicles and energy-efficient self-driving cars are becoming increasingly widespread along with the rise of new innovative mobility services, such as robo-taxis and self-driving mini-buses.

In the case of EVs, less auto parts will be required as metal parts such as powertrain components – the engine, vehicle intake and exhaust system, and transmission – will be replaced by batteries, motors, and electronic parts. As cars are made lighter to improve driving range, alternative materials such as aluminum and CFRP are being used in some luxury lineups.

In order to retain its competitiveness and also meet increasingly strict environmental regulations, the steel industry is developing lighter and stronger steel materials such as advanced high-strength steel (AHSS) to replace traditional steel products. Steel, a strong and economically competitive material, remains an attractive choice for both EVs and self-driving cars.

Recovery of the Shipbuilding Industry

Technological advancement as a result of the Fourth Industrial Revolution and changing environmental regulations will bring considerable changes to the shipbuilding industry.

The shipbuilding industry, which boomed in the 2000’s, experienced a downturn after the 2008-09 financial crisis. Although the oversupply will linger until 2025, the shipbuilding market will then turn to an upswing with increasing growing global trade and rising demand for ship replacement.

With the development of ultra-large container ships, LNG-fueled ships, electric ships, CO₂ carriers, polar ships, and environmentally–friendly equipment, high-strength steel for ultra-large and lighter ships and high-strength low-alloy steel for safe and affordable LNG and CO₂ storage tanks are required.

As vessels become larger and lighter, the steel intensity of ship’s tonnage will fall. Steel intensity is expected to decline due to larger and lighter vessels.

Global Climate Action and Energy Transition

As a response to global warming, renewable energy is increasingly in demand. In fact, it is no longer being referred to as “alternative” energy but “mainstream”. The International Energy Agency (IEA) has predicted that the share of renewables within global power generation is expected to rise from 23 percent in 2014 to 37 percent by 2040.

The renewable energy sector is also adopting various types of steel products. The tube tower, which accounts for 65% of the weight of a wind turbine, is made mainly of steel, while thin stainless steel sheets and frames are required for solar panels. This wide application of steel products offers additional business opportunities to steel companies.

Meanwhile, the share of fossil fuels within primary energy consumption will fall from 81 percent to 74 percent over this span. However, the decline will be gradual due to population and economic growth in emerging countries and fossil fuels will continue to play a dominant role in the energy sector in terms of quantity of consumption.

Steel companies must target new markets by developing innovative steel products for the microgrids and energy storage systems which will grow alongside renewable energy.

The Steel Industry Over the Next Two Decades

Over the next two decades, the steel industry will face the following four challenges: slowing steel demand due to decreased steel intensity across major steel-consuming industries; a need for more advanced steel products; upgrading to eco-friendly and smart steelmaking processes; and changes in manufacturing based on the Fourth Industrial Revolution.

Accordingly, it is imperative that the steel industry boost its capabilities for continues product and process innovation and build a sound steel ecosystem through partnerships with steel-consuming industries.

To this end, POSCO is not only investing in the development of an eco-friendly rolling process but also in sustainable development including energy conservation and recycling technologies. In addition to factory automation based on IoT, big data and AI, POSCO is working to increase the application of smart technology internally as well as externally with its partners and affiliates.

It is an exciting time for the steel industry as it continues to transform along with the ongoing and emerging megatrends.

Download the full version of POSRI’s Asian Steel Watch journal for more at POSRI’s official website.

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

In response, China’s government and industries are turning to the Fourth Industrial Revolution, seeing the increased integration of information technology, big data and the internet as the key to revive its manufacturing sector and create new opportunities for growth.

How is China preparing for the Fourth Industrial Revolution? And how will that affect their steel industry? Those are the topics explored by Dr. Chang-do Kim, senior principal researcher at POSCO Research Institute (POSRI), in the most recent issue of POSRI’s Asian Steel Watch.

China’s Approach to the Fourth Industrial Revolution

The Fourth Industrial Revolution refers to the combining of the Internet of Things (IoT), big data, artificial intelligence (AI), cloud computers and all the other emerging smart IT technologies to create a faster and more powerful industrial system that blurs the boundaries between the physical, digital and biological. In Germany, “Industry 4.0” is the official approach to this new era, while in the United States, officials talk about the “Industrial Internet.”

In China, there are two complementary government policies for the Fourth Industrial Revolution: “Made in China 2025” and “Internet Plus.” Internet Plus was introduced in March 2015, featuring an action plan of integrating mobile, cloud computing, big data and the IoT with manufacturing to help develop e-commerce, industry networks and the international presence of Chinese companies.

Made in China 2025 is even larger in scope, with five “basic directions”, four “guiding principles,” nine “objectives”, five “key projects”, 10 “priority sectors” and eight “actions for policy improvement” from 2015 to 2025. But the main emphasis of these many plans and aims is clear: innovation.

Made in China 2025 is also just the first step in a three-stage plan to boost China’s manufacturing and innovative capabilities over 35 years. The point of the ambitious, long-term strategy is to make China a world-leader. At the moment, China sees the world’s top manufacturers divided into three tiers, with the United States at the top, and Japan and Germany in the second tier. China considers itself to be third-tier now, but plans on becoming second-tier by 2025 and the leader of the second tier by 2035, finally becoming top tier by 2049. And at the heart of all those manufacturing plan is the Fourth Industrial Revolution.

The Potential of Smart Factories in China

A big part of modernizing industry involves building smart factories – factories that have been transformed through sensors, programmable logic controllers and other control systems, along with advanced manufacturing applications. And at the heart of smart factories is cyber-physical systems (CPS), which integrate the physical side of manufacturing with the digital.

One market research company predicts that between 2014 and 2020, the world market for smart factories will grow at 5.4 percent CAGR, rising from US$41.3 billion to an estimated US$56.6 billion.

China has been the world’s biggest manufacturer since 2010, which gives it a significant advantage in moving toward the future, especially in compiling big data. Having a government willing to provide such heavy support is also a great boom to industries.

However, China also faces significant challenges. Manufacturers around China have greatly different levels of development, with most falling between Industry 2.0 and Industry 3.0 these days. Many analysts think it is more important to get most manufacturers up to Industry 3.0 before pushing onward to Industry 4.0.

Others point out that China is lacking the experts needed to implement smart factories properly. Without the ability to build and analyze big data and CPS, becoming a next-generation leader will be extremely difficult.

However, the Chinese government is already aware of this problem, and is trying to create a phased introduction for smart factories, adding more sophisticated advances as its domestic industry becomes able to handle them.

How Smart Factories Are Transforming China’s Steel Industry

These days, China’s steel manufacturers are facing major challenges to profitability due to overcapacity, environmental regulations, rising costs and other factors. So there is much optimism that introducing smart factories will prove to be quite helpful for the steel industry.

The Baosteel Group’s subsidiary Shanghai Meishan Iron and Steel is already implementing smart manufacturing into its development strategies. Baosteel is also looking to introduce an e-commerce platform, and make other IT advances.

But with the different levels of development among China’s various steelmakers, experts think phased implementation of smart factories will be needed in this sector, too, along with a selection and concentration of companies. For small- and medium-sized steelmakers, the emphasis should be on the early stages of automation and management, looking at such areas as manufacturing records and defect logs.

For larger manufacturers, the focus should be on creating real-time systems that connect the automation control of their factories. And for the largest steelmakers, they can work on multifunctional intelligence, wired and wireless communication with AI and autonomous productions of facilities and systems.

In China, as in the rest of the world, the challenges presented by the Fourth Industrial Revolution are forcing manufactures to move their capabilities swiftly into the future. And for China’s steel industry, that future is beginning to take shape now. Just as China shocked the world with its rapid rise into a manufacturing powerhouse, now it looks to lead the way with Industry 4.0.

Indeed, this topic is so pressing that the theme of January’s World Economic Forum in Davos, Switzerland, was “Mastering the Fourth Industrial Revolution.” Big data, artificial intelligence (AI), virtual reality (VR), 3D printing and the Internet of Things (IoT) are combining to create seismic changes to industry – including to the world of steel.

Just what we mean by the Fourth Industrial Revolution and how that is changing steel were the focus of “The Fourth Industrial Revolution: The Winds of Change Are Blowing in the Steel Industry,” an in-depth essay by Jeho Cheong, senior principal researcher at POSCO Research Institute (POSRI), in the latest issue of POSRI’s Asian Steel Watch.

What Is the Fourth Industrial Revolution?

Industry experts and historians have commonly divided up the rise of modern business in industry into a series of significant eras. The original Industrial Revolution refers to the rise of mechanization, most notably the creation of the steam engine.

About a hundred years after that, the spread of electrical power and related technologies (like the conveyor belt) led to the Second Industrial Revolution: mass production. The Third Industrial Revolution appeared in the late-20^th century with the rise of computers and the internet, leading to informatization and automation.

The Fourth Industrial Revolution builds on the third, but building in speed, scope and impact to blur the boundaries between the physical, digital and biological. All aspects of knowledge and creation are being combined the smart IT technology to become something exponentially more useful and powerful.

A New Paradigm for Industry

The rise of the Fourth Industrial Revolution is having widespread impact on business, turning many assumptions and practices upside-down. For one thing, the increasing effectiveness of AI technology is threatening many jobs, like in journalism and the financial sectors, where repetitive reports can often be composed by smart algorithms.

This new industrial era also is causing the breakdown of many longstanding business structures. Smart technology is changing how we use energy, how our cars operate and are maintained, and how we pay for goods and services.

But perhaps the biggest change being caused by the Fourth Industrial Revolution is how it is changing value – destroying many traditional sources of value and replacing them with data-driven value. For instance, in the automobile industry, the data about how we drive – where, when, how, etc. – could surpass the value of the cars themselves.

Instead of the economy being primarily about goods, it is becoming about data, and intangible value is exceeding the tangible. The growth of companies like Google, Amazon, and Facebook – modern giants built primarily on data – is a clear sign of how the Fourth Industrial Revolution is changing our world.

What the Fourth Industrial Revolution Means for Business

All over the world, governments are teaming up with industry an in attempt to come to terms with these changes. In Germany, they call it “Industry 4.0,” in the United States it is “Advance Manufacturing Partnership,” in China the approaches are “Made in China 2025” and “Internet Plus,” while in Japan it is part of the “New Robot Strategy.”

The nuances and emphases of these approaches are slightly different, but the general idea is the same: to help industry deal with a new, information-based era.

What this means for consumers is increasing customization and personalization. People no longer are content to be part of a large trend. Now they want styles and technologies that work just the way they want to use them. In the past, customization meant huge cost increases, but not anymore.

This in turn is forcing manufacturers to change their entire approach to automation. Instead of central controls and fixed products, now industry is expected to produce dynamic products, constantly reacting to changing situations. Business logistics and manufacturing logistics need to be tightly integrated, to minimize waste and time to market.

Finally, this expansion of value-chains and transformation of manufacturing is changing the nature of service. Where once service was a cost to corporations, today, thanks to better information collection and knowledge of usage patterns, it is becoming a significant revenue source. By using big data, businesses can create valuable information for their customers, which can be monetized and sold.

What the Fourth Industrial Revolution Means for Steel

What do these changes mean for steel? After all, the steel industry is very different than most manufacturing processes: steel requires continuous processing, with liquid steel kept at high temperatures, moving at high speeds. In addition, in the steel-making process, labor is a relatively low cost, so there is little room for automation to bring savings.

But in fact the Fourth Industrial Revolution is bringing big changes to steel, too. These new technologies are allowing steel companies to reduce inventory and grow more flexible and responsive to customer needs. It is possible that all information related to steel supply and demand could become available to all producers and consumers, leading to unprecedented transparency and efficiency.

And at POSCO, the aim is even higher: the creation of a “digital genome map.” Just as the Human Genome Project is sequencing the billions of chemical base pairs that make up the human DNA in order to better diagnose and treat diseases, so too is POSCO working on collecting all microdata about every aspect of steel production.

POSCO is looking to create a steel plant that can track every aspect, including production, energy usage, safety, and quality, constantly sensing and responding to inputs. In fact, POSCO’s Gwangyang plate plant is already being turned into a Fourth Industrial Revolution smart factory, and plans are to extend this to all production areas.

The future is just around the corner, and at POSCO, that dedication to innovation is helping to realize the awesome potential of the Fourth Industrial Revolution for the steel industry.

With a focus on Asia, the English-language journal investigates the continually changing trends in the steel industry in-depth, along with a broader look at Asia’s macroeconomic situation and larger trends in steel consumption.

A New Wave Transforms Industry

The focus of the latest Asian Steel Watch is the “Fourth Wave of Manufacturing” – which refers to the integration of industry with the latest in IT technology, including the Internet of Things (IoT), artificial intelligence, the cloud and big data. As in many fields, the steel industry is being transformed by the revolution in information technology, bringing new challenges and new opportunities.

This special section includes four articles in Industry 4.0:

The Fourth Industrial Revolution: The Winds of Change Are Blowing in the Steel Industry: Summarizes how the latest changed in technology are changing the steel industry, from production to distribution.

Accelerating Digital Transformation with Smart Factory to Unlock New Value: Case of POSCO: When it comes to how Industry 4.0 is changing POSCO, the emphasis is on “smarter.” From sensors to analytics to controls, smart technology is reducing costs and improving output.

China Is Shifting to the “Smart Factory of the World”: China became the world’s largest manufacturing nation in 2010, but today slowing growth is forcing the Middle Kingdom to look for new paths to prosperity. Plans like “Made in China 2025” and “Internet Plus” represent China’s attempts at using the latest technological advances to grow for a new era.

The Rise, Prospects, and Impact of China’s Steel E-Commerce: With so much fierce competition in the Chinese steel market, there is much hope that e-commerce can create new possibilities and efficiencies for manufacturers, as well as distributors and investors.

Additional Topics in This Issue

In addition to the Fourth Wave of Manufacturing, the latest issue of Asian Steel Watch also explores a range of compelling topics affecting the steel industry today.

Ask the Guru: Roads Ahead for the Steel Industry: A fascinating interview with Edwin Basson, director general of worldsteel. Basson talks about the causes of sluggish demand in the steel industry predicted for 2017, China’s peak steel, solutions to overcapacity, the future of the steel industry in Asia, and the influence of the Fourth Industrial Revolution on the steel industry.

Global Competitiveness Through Hybridization of FINEX and CEM Processes: A special report by Dong Jin Min, professor in the Department of Materials Science and Engineering at Yonsei University in Korea, about alternative midi-mill ironmaking methods that use hybridization.

The Demographic Cliff: How It Will Impact Asia’s Steel Demand: As societies age, the demand for many key products decline, such as homes and automobiles, even as the demand for services increases. What lessons from Europe and other aging societies can be applied to countries like Korea, which are currently experiencing aging?

Restructuring of the Chinese Steel Industry: Retrospects and Prospects: With China’s steel production perhaps having peaked, this article proposes six directions for the future of the steel industry in China.

Myanmar, the Last Frontier in the ASEAN, Will See High Growth of Its Steel Industry: As Myanmar opens after 54 years of military rule, it is growing and transforming rapidly. With little capacity to manufacture its own steel, Myanmar should see a major rise in steel imports as it grows.

Market Trends and Analysis: Two articles explore the bigger trends affecting the steel industry. The first examines the last 100 years as a “supercycle” for the steel industry. And the second article takes an in-depth look at the latest statistics of the steel industry in Northeast Asia, analyzing how it is changing in Korea, China and Japan.

Over the next few weeks, we will be posting a series of stories about the articles in the latest edition of Asian Steel Watch. Be sure to check back here regularly to get an in-depth look at how the Fourth Wave of Manufacturing is transforming the world of steel, and developments around the world are affecting the Asian steel industry.