POSCO joins its partners in the energy industry at the Offshore Technology Conference held in Houston in May. The exhibition booth is prepared in collaboration with the high-profile offshore tool and material manufacturers in the energy industry.

Just as it did the previous year, POSCO presented a booth together with the offshore tool and material manufacturers in the energy industry. POSCO also consulted with various companies to expand new markets for its World Premium Products, including the high manganese steel for slurry pipes, steel for LNG terminals, and steel bars for tools and materials for energy mining.

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Global steel information service provider World Steel Dynamics (WSD) announced the World-Class Steelmaker Rankings on June 13 in New York. POSCO has topped the list as the world’s best steelmaker for the seventh consecutive year.

This year’s achievement is especially meaningful, as the company faced a tough business environment in 2015 due to global oversupply, a downturn of major demand industries and import restrictions on exporting countries. POSCO also underwent a strict restructuring process to improve its financial structure.

The WSD assessed 37 steelmakers around the world in 23 categories including technological innovation, cost competitiveness, financial stability and procurement.

POSCO ranked at the top with a score of 8.02. The company was credited for its investment attraction of Saudi Arabia’s sovereign wealth fund and the reorganization of its corporate structure, including its sale of POSCO Specialty Steel.

POSCO was also applauded for making use of innovative technologies such as FINEX and CEM, improving the technical skills and productivity of its engineers, increasing sales of value-added high-end products such as World Premium products and reducing costs.

Japanese Nippon Steel and Sumitomo Metal Corp ranked second, having improved export competitiveness thanks to a weak yen. US-based steelmakers Nucor and SDI ranked third and fourth, respectively, having improved competitiveness in energy costs through the use of shale gas.

Russian steelmaker NLMK, who boasts iron ore and coal mines, came in fifth while Severstal, another Russian company, ranked sixth. Hyundai Steel placed twelfth this year.

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POSCO partook in this year’s Offshore Technology Conference (OTC), held between May 2 and 5 in Houston.

OTC is the biggest international conference for offshore operation technology, and consists of technology seminars and exhibitions related to offshore plants and equipment.

POSCO has participated in the OTC for nine consecutive years, starting in 2008. This year, specifically, POSCO maximized its promotional effectiveness by setting up an exhibition booth with domestic offshore equipment manufacturers to promote finished solutions that ranged from World Premium (WP) products to equipment.

POSCO and offshore equipment manufacturers have actively and collectively sought new clients by holding technology meetings with engineering, procurement and construction (EPC) companies.

POSCO configured the OTC exhibition booth, which focused on technology solutions for thick plate and high manganese steel, and showcased various products and technologies to visitors, including four types of high manganese steel and 13 types of utilization technologies and component solutions.

In addition, POSCO promoted technology agreements and strengthened its network with material certificate authorities, ordering bodies, EPC companies and manufacturers in order to stimulate new orders for high manganese steel.

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Last year, POSCO strengthened its competitive edge by stably supplying high-quality materials to GM’s global plants throughout South Korea, Mexico and India. POSCO has also focused on maximizing synergy for both companies by enhancing the executive ability for solutions marketing. In particular, the technical council jointly operated by POSCO and GM is constantly creating new business opportunities as a venue for joint development of steel materials and technologies to be applied to new cars.

POSCO’s global marketing infrastructure and the TSC (Technical Service Center)* are considered to be the company’s strengths that differentiate it from its competitors. POSCO has provided customized solutions for each of GM’s global plants and reinforced cooperation based on these strengths, putting itself in a position to be qualified as GM’s Supplier of the Year for two consecutive years.

POSCO actively supported GM’s strategies to increase the purchasing of local materials by completing quality certification and initiating supply of side plate materials manufactured by POSCO Mexico for GM’s Mexico-based plant. In addition, it has supplied low unit weight materials from the headquarters for GM’s plant in India, providing optimized solutions for the needs of each global GM plant while constantly contributing to stabilized production and increased efficiency of clients.

This year, POSCO will continue to enhance its global marketing competitiveness by expanding the scope of convergence solution marketing based on world premium products and further strengthening its partnership with GM.

The GM Supplier of the Year Award, established in 1992, is given to suppliers that go above and beyond GM’s requirements based on quality, service, technology and price. Criteria are evaluated by a group of executives in the fields of procurement, engineering, quality, manufacturing and logistics. This year, 110 companies were selected as recipients of the award.

* POSCO TSC (Technical Service Center) is an organization providing an integrated solution of EVI (Early Vendor Involvement) and technical services for clients using POSCO’s steel materials. It is operated in 23 locations worldwide including South Korea, China, the Americas, Europe and Southeast Asia with an aim to provide customized care and complete local solutions for global clients.

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Dear beloved POSCO family,
The year 2016 has dawned upon us. I wish you a happy and healthy 2016. May the new year be one full of joy, where all your wishes and dreams come true.
Happy New Year!

Dear POSCO family members!
Unfortunately, the local business environment is predicted to decline in 2016.
We anticipate additional challenges to our overseas operations, especially in emerging countries where economic recession is highly likely to persist. Moreover, it has become extremely difficult for us to survive without revamping our current business strategy as we face Japan’s cost competitiveness stemming from its reduced currency value and China’s faster-than-expected technological advancements.
Therefore, I would like to sincerely request that we focus all our efforts towards accelerating “Structural Innovation” in 2016, and break the static mold of old business conventions on operation, cost, profit and consciousness.

First of all, we need to innovatively restructure our Group’s businesses from a perspective of profitability.
Until now, our restructuring initiative has focused on improving financial structure. This year, however, we must carry out thorough restructuring in terms of profitability by eliminating any latent financial issues that may emerge.

Second, we need to improve our current high-cost and inefficient operating structure.
Under the current period of low-margins, it is necessary to improvise our operations to perform under an extremely low cost structure. This transition to low-cost and highly efficient structure should apply to all the functions of the Group including procurement, production, R&D and management. Low-profit and inefficient facilities must all be closely scrutinized to find the most optimal solution, including idling of such facilities. IP projects must be augmented and systemized to accelerate elimination of inefficiencies.

Third, we should also spur our innovations in our revenue structure.
The marketing division needs to implement advanced Solutions Marketing to enhance customer satisfaction. Meanwhile, the R&D and production divisions should seamlessly interconnect with the sales teams to support the expansion of World Premium (WP) product sales.
As for our overseas affiliates that urgently require improvements in profitability, it is important for them to undergo innovative restructuring, strengthen Solutions Marketing and coherently execute cost-savings initiatives.
The significance of breaking away from the conventional captive revenue structure and reinforcing differentiated competitiveness cannot be emphasized enough.
Finally, we must firmly establish an ethical management and a performance-based corporate culture.
Let me re-emphasize that good ethics are POSCO’s most important management principle. No matter what the cost may be, the code of ethics must be adhered to and zero tolerance will be applied to any unethical behavior, regardless of offender’s rank or severity of the case.
Based on this code of ethics, we will create a virtuous corporate culture that generates higher performance results through reinforcing evaluation methods and compensation.

Dear POSCO family members!
As things get more difficult, solutions must be found on-site. As long as we continue to challenge ourselves and make improvements in our production, marketing and construction sites, I have no doubt that we will overcome today’s adversities in no time.

I sincerely hope that 2016 will be a year in which the whole POSCO Group and its members make great strides together.
Thank you very much!

New Year’s morning.
Ohjoon Kwon, CEO

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The announcement distinguished POSCO as the world’s top steelmaker for the eighth consecutive time in six years. 

The WSD evaluated 36 steelmakers from all corners of the globe in 23 categories including production capacity, profitability, technological innovation, cost competitiveness, cost savings, financial stability, and procurement, as of June 2015.

As a result of focusing on the enhancement of core corporate competitiveness by growing the sales of high value-added premium products and solution marketing founded on technology, POSCO acquired an average of 7.91 points, with a maximum score of 10 points in technological innovation, putting the Korean steelmaker at the No.1 spot. 

According to the WSD’s rankings, following POSCO was the second-ranking American mini-mill steelmaker Nucor Corp., having reaped the benefits of the shale gas developments that coincide with the recent recovery of the steel market in industrialized nations. Nippon Steel and Sumitomo Metal of Japan ranked third, demonstrating rising sales related to increased export competitiveness under the Abenomics policies. Brazil’s Gerdau came in fourth, followed by Severstal of Russia. Hyundai Steel of Korea ranked ninth for the second consecutive year. 

During the Steel Success Strategies forum, which was held under the theme “Just the Beginning,” it was forecasted by the WSD that the global steel industry would continue at its current slow pace for some time after assessing the short-term market conditions from 2015 to 2017. On the bright side, the organization noted that the global steel industry should recover some momentum and see improvements in the raw materials market from 2017. This, of course, is uplifting news as POSCO continues to move forward.

Top 10 Rankings of World-Class Competitive Steelmakers 

1 POSCO (Korea) 7.91 
2 Nucor (U.S.A.) 7.55 
3 Nippon Steel & Sumitomo Metal (Japan) 7.49 
4 Gerdau (Brazil) 7.34 
5 Severstal (Russia) 7.31 
6 JSW Steel (India) 7.20 
7 NLMK (Russia) 7.14 
8 JFE(Japan) 7.104
9 Hyundai 7.05
10 Erdemir 7.03

Yet, the quality standards for advanced steel used for drilling, producing, transporting, conserving and handling energy resources for oil and gas are becoming stricter so that steel can better endure the harsh drilling environments of the deep sea and polar areas, two domains on the radars of oil exploration geologists.

At this year’s Offshore Technology Conference (OTC), the world’s largest marine technology exhibition, which was held from May 4 to 7 in Houston, Texas, POSCO showcased its efforts on such developments. Included were its lineup of high-grade steel products, as well as the firm’s cross-department collaboration system between steel plants, laboratories and marketing departments, among others, to improve the development of functional, advanced steel.

Considered the leading forum for gathering and sharing offshore oil and gas information (as well as unveiling some impressive machinery), the goal of the conference, according to its website, is to “advance scientific and technical knowledge for the safe, environmentally friendly and sustainable development of offshore oil and gas resources.”

Despite recent low oil prices, the 2015 OTC attracted over 94,000 attendees, making it the sixth largest in its 47-year history. Additionally, approximately 2,700 major oil and global EPC (Engineering, Procurement and Construction) companies from 37 countries participated.

Among these, POSCO represented South Korea, aiming to continue its solution marketing activities for advanced steel for energy, production and technology, as well as steel utilization techniques.

Introducing a variety of the company’s products and technologies, POSCO’s exhibition consisted of four zones: energy plants, energy pipes, shipbuilding, and manganese steel sectors. At the booth, a video on steel-making technology was presented to help attendees better understand steel products.

POSCO displayed its strength as a “total solution provider,” which has helped the firm to simultaneously strengthen its position in the steel market and discover new business opportunities.

Since it first participated in the OTC in 2008, POSCO has operated a booth annually as part of its demand development activities, which have led to the company’s increasing development of energy steel in a short period of time. Moreover, POSCO’s progressive product promotion and supplier certification activities have resulted in a successful long-term contract for the blanket supply of energy steel, and have solidified technical cooperation with clients.

As new advancements are made in offshore drilling technology, the utilization of steel in the industry will also evolve. POSCO will continue to adapt to such changes, and will work hard to manufacture sustainable, quality products to meet the demands of its clients.

POSCO named most competitive in Global steel information provider WSD’s assessment of 36 steelmakers around the world

POSCO has been named the world’s most competitive steelmaker for the 7th consecutive time during the past five years.

Global steel information service provider World Steel Dynamics (WSD) announced the World-Class Steelmaker Rankings during the 29^th Steel Success Strategies (SSS) forum on Tuesday, June 17 New York Time.

POSCO earned high points in technological innovation and human resource management

WSD gave the top mark of 7.91 points out of 10 to POSCO. It said POSCO received highest points in four segments, including technological innovation and human resource management.

As of June 2014, WSD made an assessment of 36 steelmakers around the world in 23 categories including production size, profitability, technological innovation, cost competitiveness, cost saving, financial stability, and procurement.

WSD gave credit for POSCO’s improvement on its core steel competitiveness

WSD also gave credit for POSCO’s effort to bolster stable growth and improve core corporate competitiveness by increasing sales of value-added high-end products and engaging in technology-based solution marketing. The company got higher points compared to the previous year on technological innovation, value-added rolled steel production and doing more to bolster downstream steel-related industries.

Following second was American mini-mill steelmaker Nucor Corp. which has enjoyed shale gas development privileges along with a recent recovery in the steel industry among developed nations. Japanese steelmakers NSSMC and JFE followed third and eighth with sales rising due to increased export competitiveness under Abenomics.

Meanwhile SAIL and Jindal, Indian companies that were among the top 10 last year, failed to remain in the list this year. Instead, Hyundai Steel, which secured 24 million tons for production, ranked ninth to join the top 10.

The first person we would like to highlight is Yukyung Lee of POSCO M-TECH.

Executive responsible for marketing at POSCO M-TECH

Please share with us your experience in applying to POSCO as well as your time here since then.

After graduating from college, I was working at a foreign IT company when I saw a position opening for a female at POSCO. I recall there was an advertisement on the first page of the daily newspaper. At the time, the 1^st female recruitment announcement was a big issue as it was very rare for Korean conglomerates to recruit female employees and there were no past cases of women, regardless job function, being able to freely apply for jobs

Pictured here: A newspaper ad for  the 1^st recruitment of female employees at Pohang Steelworks

After joining the Department for Exports, I worked on exports for southeast Asia and I also moved to the Plant & Equipment Procurement Department and then to the Raw Materials Procurement Department.

What kind of company is POSCO M-Tech and what is your role there?

I am responsible for marketing at POSCO M-Tech.

POSCO M-TECH started as a steel packaging specialized company in 1973. Currently POSCO M-TECH produces the alumnium deoxider and molybdenum used for the steelmaking process as well as steel packing for Pohang and Gwangyang Works. In addition, it has been creating new growth momentum by operating plants for steel raw material such as magnesium plants and ferro silicon factories.

The marketing department has been responsible for raw material procurement and product sales. As such, you can consider this department to be responsible for the profitability of the company.

When did you feel the most satisfaction while working at POSCO?

I felt most satisfaction with my job when I received recognition for my hard work. While working in the Department for Exports, I had to consider how to receive real-time market information and utilize the network of trading companies in order to receive information on each of the different markets. As the system developed, today it has become what we call GIH (Global Information Hub) which is an internal information sharing system for POSCO. In addition, at the time of plant and equipment purchase, TCO (Total Cost of Ownership) was introduced so that purchases were not only based on price but also quality by creating a process that evaluated suppliers based on considerations of maintenance costs and other costs that arise while operating facilities

I felt the most satisfaction after receiving recognition for my efforts which led to increased profitability.

Superwoman who takes care of work and family! What is her secret?

What is your secret to finding work-life balance?

I got married and had a baby soon after joining POSCO so I had to get help from my mother-in-law and a housekeeper. I started to live together with my mother-in-law since the birth of my second child and gave full responsibility on the house chores to the housekeeper even though it was costly. As nurturing and housework were taken care by others, I naturally could concentrate on working and spent time with children during my spare time. For women pursuing their careers, I advise you to ask for help from those around you so that you can focus on making most of your talents and excelling at work.

At first, my children wanted their mother to be home, but as they grew older, they say they are proud to have a mother who has a profession. Especially, my elder child wants to become a person who is passionate about their work like me.

A few words for those who dream of becoming a woman leader! 

As a woman leader, we would like to listen to your views on strength of women leaders and what efforts you have done to be where you are today.

Generally, the woman in the family listens, is considerate, takes initiatives, and solves problems that arise between family members. These are the roles and qualities also required for leaders at work. If you see a family as a small organization, the mother’s leadership which involves listening, being considerate, taking initiatives, and solving problems, could be said to be the strength for women leaders in the workplace as well.

I also try to listen and consider various opinions of employees before saying my thoughts. When receiving reports I always ask for the opinions of the person in charge since there is no one more knowledgeable about the matters at hand than the person in charge. I think when leaders listen to employees, the employees are motivated to work harder, think more and propose better ideas.

In addition,  I think the initiatives of a leader influences the atmosphere of the organization, so I try hard to be efficient with my time by exercising in the morning and constantly working on self-development even after work. I hope I can be recognized by employees as a hardworking leader that is smart and realistic but also warm-hearted.

Please tell us about your plans for the next 5, 10 years.
I am currently working as the marketing executive for POSCO M-TECH and I would like to help grow the company to be a specialized, global materials company. My current work is focused on sales of Ferro Alloy like deoxidizer, molybdenum, etc.

Going forward, I would like to take on responsibilities beyond operation of POSCO’s ferrosilicon factories and magnesium factories to contribute to management as well. I also want to be able to inspire juniors by setting an example as a successful female leader in the steel industry.

Finally, please give a few words to women who are entering the work force!

First of all, I want to say “take a long-term view of your life.” When you first enter a company, you may be disappointed when you realize that not everything can be done with only passion. Because each organization is made up of a diversity of people, there are many unexpected issues that can arise and problems between internal and external bodies. Also it is possible to have to do work that is not necessarily always that meaningful.

Nevertheless, I don’t think you need to be too disappointed. It is through these experiences and conflicts, you are able to build your career and your unique strengths.

Grow your dreams and boldly take on those challenges. If you were tired of simultaneously taking care of children and doing work, ask for help from your family, friends or neighbors. And enjoy the work and responsibilities with passion.

I advise to work while keeping in mind what others around me and customers need. Most of all, work stamina is very important. You should always make time to take care of your health. That way, you can have an enjoyable work life.

Hope that Yukyung Lee is a source of inspiration for you. Please look forward to reading our next post for the POSCO Women Leadership Series!

What is CLOV FPSO project?

The CLOV project, consisting of the oil fields at Cravo, Lirio, Orqudea and Violeta in Angloa’s offshore, involves the integrated development of a four-field cluster on the northwest sector of Angola’s offshore block 17, in water depths ranging from 1,100 to 1,400m. The FPSO (Floating Production, Storage and Offloading) facility to be utilized for the project is designed to receive, process, and store oil or natural gas, and can be maneuvered to serve different locations.

POSCO, the first steel manufacturer to provide the entire supply

Two years ago, Total, the project operator, awarded Daewoo Shipbuilding & Marine Engineering (DSME) a $1.8 billion engineering, procurement, installation and construction contract for the FPSO. With its 34-year relationship with DSME, POSCO became the first steel manufacturer to provide the entire supply of thick plate steel for a major offshore facility, from a single mill. This included some 88,000 tons of steel plate. The scale of the CLOV floating facility is huge, involving construction of what will be one of the world’s largest FPSOs. The vessel is 305m long, 61m wide, and weighs 110,000 tons. After the Pazflor FPSO, CLOV is reputed to be the second-largest FPSO in the world.

POSCO ‘Z Quality’ steels

Steel selection was a key component of the FPSO design and construction, and the need to procure high-strength, quality steel in turn underscored the importance of selecting the correct steel manufacturer. POSCO was already registered with Total as a supplier capable of meeting the strict requirements for offshore structures, one that could quickly respond to changes in plans and requirements, as needed.

POSCO was also able to meet technical requirements that only a few mills in the world are capable of meeting. Out of the total 88,000 tons of steel supplied, approximately 20,000 tons were Z quality (low-sulphur steel with tested level of ductility through the thickness direction) for the topsides and hull. These high-quality steels are often specified for critical applications, since they must endure high levels of stress. Besides, the POSCO facilities in Korea are one of the few steel mills capable of producing and supplying these Z quality steels.

POSCO completes the job in just 10 months

Another challenge was the short construction timeframe called for on the CLOV project. For most offshore facility construction projects, suppliers typically have one year to complete their order. Often, the extended time period is needed to allow for changes in design and specification that inevitably arise over the life of such projects. Here again, POSCO’s ability to respond quickly proved vital.

POSCO was able to develop and incorporate offshore structure steel production technology and lessons learned from its involvement in the Pazflor FPSO project, again with Total and DSME, As the first company in the steel industry to implement the Process Innovation business management software system since 1999, POSCO has been able to successfully manage the total process through this established IT system, receiving orders and delivering supplies quickly in response to client requests. Based upon this technical skill, POSCO was able to respond appropriately and in a timely manner during the CLOV FPSO construction process, when design changes and sudden requests were made. Even with design changes and sudden requests, the Korean steel supplier was able to provide its deliverables in approximately 10 months, from January to October 2011.

Once the final stage of work on the FPSO are completed this spring, the vessel will be prepared to sail away in May to its designated location in Angola’s offshore block 17. There, it will be moored and stationed in preparation for a mid-2014 commissioning.

POSCO will continue to sail on

In September 2011, POSCO agreed with Shell, a multinational oil company, to exclusively supply thick plates the firm needs for offshore plant projects by 2016. POSCO has also signed an MOU with GE to co-develop and supply rolled steels and related technology for energy plants.

In partnerships with POSCO E&C, Daewoo International Corporation, SungJin Geotec and other POSCO Families, POSCO is aiming to complete the developments of over 60 types of energy steel materials for obtaining energy plant contracts as well as supplying relevant steel materials. In doing so, POSCO targets to gain a 10% market share of the global energy thick plate industry by 2020.