The annual POSCO Global Volunteer Week was established to not only give back to local communities, but also to reinforce the corporate value of being socially involved.

POSCO has held the GVW around the end of May every year since 2010, commemorating the date of when the POSCO Volunteering Group was initially founded.

Volunteering Activities Utilizing POSCO’s Business Nature of Steel

This year, approximately 84,000 POSCO Group employees have volunteered to help people across the world by making the best use of their expertise.

Employees in Pohang, Gwangyang and Seoul are carrying out activities such as replacing wheelchair batteries for people with disabilities, establishing safe road environments for children, upgrading electrical facilities for senior citizens living alone and planting wildflowers to create a more cheerful environment.

On May 31, CEO Ohjoon Kwon and approximately 40 employees will visit a rehabilitation center for people with disabilities located near the POSCO Center in Seoul. There, they will build a steel garden, paint fences and assemble steel furniture.

The charity week is also simultaneously being held by POSCO branches overseas. With volunteer work tailored to the needs of their local areas, employees in China, Indonesia and Mexico are all taking initiative to benefit their communities. Volunteer activities include distributing basic necessities to local residents, providing rust removal services, painting bridges and installing plumbing systems in welfare centers.

POSCO, through its seventh annual Global Volunteer Week, seeks to actively spread its corporate culture of sharing and communicating with local communities worldwide.

Steel Safety Day was established in 2014 by the World Steel Association to encourage better safety in the steel industry. The goal is ambitious, to achieve an “injury-free, illness-free and healthy workplace with zero incidents.”

Although a young event, it has quickly grown. Last year, more than 525,000 employees and contractors from 327 steel sites took part in the Steel Safety Day audit, identifying and preventing hazards in their workplace.

To that end, Steel Safety Day focuses on the five most common causes of safety incidents: moving machinery, falling from height, falling objects, gas and asphyxiation, and moving cranes.

This year, “falling from height” is getting the spotlight, as steel companies around the world re-examine their height-related safety measures and ensure their workplaces are as safe as possible.

Taking Precautions for Falling From Height

When working at great heights, safety experts recommend three major steps to reduce the risks.

1. Elimination. If you don’t need to do a task at height, then don’t. Stay on the ground.

2. Prevention. If you must work at height, make sure you have the appropriate guardrails, scaffolding and other safety equipment in place.

3. Protection. If 1 and 2 are not possible, then make sure each person is fully protected, with harnesses, life lines and other safety features while working at height.

In addition, the World Steel Association recommends 10 practical guidelines, such as building guardrails, scaffolding and other safety equipment, ensuring all people who work at height be properly trained, and well-maintained rescue equipment always be in place.

To better illustrate these ideas and reinforce its safety message, the World Steel Association has created this infographic about working at height.

And it created another infographic about Steel Safety Day in general.

The steel industry has increasingly focused on safety in recent years. In fact, since 2004, the steel industry has reduced time lost because of injuries by 71 percent. But safety doesn’t happen by accident. It requires deliberate and systematic measures by everyone, from management to employees.

As one of the world’s leading steel manufacturers, POSCO is dedicated to being a leader when it comes to workplace safety. And we look forward to the latest Steel Safety Day on April 28, when once again all eyes will be on preventing injury and keeping our sites safe.

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As a result, in December of the same year, Chinese President Xi Jinping declared that China formally entered an era of xin chang tai. In English, the term translates to “new normal” or “a new state of normality.” His statement acknowledged the nation’s slowing growth and addressed the need to create a growth structure centered on investment and innovation.

China’s “new normal” is about transitioning to this new way of growth. Changes in the country’s economic fundamentals, including the “new normal” market environment, also apply to the Chinese steel industry. As a result, the industry, too, is searching for new solutions.

Shifting Gears

Over the past few decades, the Chinese economy grew at unprecedented rates, which caused a variety of problems both domestically and internationally. Rapid growth was accompanied by adverse effects, such as regional and socioeconomic inequality, environmental pollution, abuse of natural resources and overcapacity.

In the “new normal” era, China aims to address current economic and social issues while seeking growth through innovation. To achieve this goal, Xi Jinping created a five step “new normal” plan.

The first step is to adopt new technologies and business models to increase the utilization of private capital and the diversification of investment sources. The second step is to satisfy a broad spectrum of consumer demands. The third is to focus on high-tech industries to attract foreign capital. The fourth is to reinforce quality-based market competition structures. And finally, according to the five-point plan, there will be a strong emphasis on conserving resources and protecting the environment.

The Three Lows

The “new normal” era signals a major economical shift for China. The far reaching changes in the nation’s economic fundamentals are characterized by “three lows.”

The first low involves China’s steel production and consumption. Both of these areas are facing low growth, and an early peak is considered to be fast approaching, according to experts. The China Iron and Steel Association (CISA) estimates that the country’s crude steel production recorded negative growth in 2015 for the first time since 2000.

Second, steel prices have been declining steadily, due to oversupply related to overcapacity, intensified price competition and pressure from the excess supply of iron ore. China’s crude steel production led the global “raw materials super cycle” in the 2000s, but its slowdown is gradually freezing demand for iron ore.

Third, China’s steel industry is transitioning from a period of low profit to a period of zero margins. The industry’s pretax profit margin was as high as 8 percent in 2007, but the figure has barely remained above zero in recent years, recording 0.04 percent in 2012, 0.48 percent in 2013 and 0.85 percent in 2014.

Transforming China

In the new era, China’s steel industry aims to overcome crises through four major strategies. First, steel companies are actively building overseas production bases and seeking export markets to relieve domestic oversupply. Second, steel companies are pursuing survival through integration that transcends ownership schemes and regional borders.

Companies are also fostering non-steel businesses to make up for the faltering steel market. CISA estimates that China’s steel industry derived over 90 percent of its gross profit from non-steel businesses in 2013 and 2014.

Finally, the steel industry is improving profitability through advanced technology and improved product quality. Additionally, it is increasing brand power, upgrading operation technologies and making drastic changes to business models.

Developing these areas is important because, according to experts, the competitiveness of the steel industry now depends on advanced operation technologies, brand innovation and IT services more than ever.

The Future of Steel in China

A CISA representative forecasted massive transformations in China’s steel industry. Two of the major projected changes expected to occur in the next five to ten years are increased exports and entry into overseas markets. These signs of change are already visible, as the Chinese government recently opened the doors of its steel industry to foreign capital.

Exports have soared due to the depressed domestic steel market, and government policies to move steel facilities overseas are being put into effect. Experts agree that this move will have a positive impact on China’s steel industry.

The Chinese steel market is expected to expand further, as steel companies are predicted to double their efforts to increase exports and enter overseas markets. The opening of the nation’s steel industry will no doubt bring about changes for the global steel market, especially considering that China makes up half of it.

Related Link:

In Southeast Asia, Surging Imports Lead to Rising Trade Barriers

The Future of Manufacturing in Korea

The Evolution of the Steel Production Process

The Myth and Reality of Global Steel Overcapacity

POSRI Releases First Edition of Bi-Annual English Journal “Asian Steel Watch”

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As one of the world’s leaders in steel manufacturing, POSCO has been integral in both the development of Korea’s economy, as well as the economies of its global business partners.

Steel has not only influenced lifestyles in practical ways, but has also made its mark culturally. Often referenced in pop culture (music and movies), it has also found its way into colloquial language.

The Language of Iron

Iron, a fundamental metallic element, is used as an adjective to describe strength.

Iron Grip

To have an iron grip means to have a tight grasp on something. It can also mean firmness or domination.

Ironclad

In the 1800s, military ships and vehicles were clad with iron to reinforce them against cannon ball attacks. Metaphorically used for something that cannot be broken, legal bindings can be described as ironclad.

Iron Fist

Iron fist is an expression used to describe a person’s strict control of a situation or a group of people. Historically, people often refer to sovereign leaders as “ruling with an iron fist.”

Iron Lady

Iron Lady has been used to describe female political leaders around the world. The term describes a strong-willed woman. The metaphor was most famously applied to Margaret Thatcher.

Steel Phrases

Iron is used to make an even stronger metal, steel. Like iron, steel is used metaphorically as an adjective to describe those who are strong-willed.

Steel Will

Frequently used as a positive characteristic, having a steel will is used to describe those who overcome adversity. Steel is often used to refer to one’s resolve, focus or determination.

Heart of Steel

Having a heart of steel can suggest one does succumb to emotional turmoil. This characteristic can be perceived as strength or coldness.

Steel Gaze

Having steely eyes means one has an intense gaze. Usually meant to describe those with strong determination, it can also mean their eyes reflect a hardness or coldness.

Coming Up

In October, with the theme of “History“ we will share stories focused on the history of steel as it drove agriculture and industry, enhancing lifestyles and connecting the world. POSCO’s long history as a leading steel manufacturer has played a big part of globalization. Stay tuned for the following stories.

POSCO’s Top Five Moments: The top moments from each decade of POSCO’s history

How POSCO Became POSCO the Great: From its beginning, how POSCO forged ahead to become Korea’s greatest steel producer

The Iron Age: Changing Daily Living: A historical view of the Iron Age and how it changed individual life

Steel History of Weapons and War: How use of iron impacted weaponry and war

The Industrial Revolution: Changing Society with Steel: How the Industrial Revolution changed life on a societal level, bringing about the beginning of globalization and urbanization

The images that cross your mind may seem apocalyptic, or even impossible to fathom. There is barely a part of our lives today that is not influenced by the metal, and it is not an exaggeration to say that steel is perhaps the most significant component of the modern world. Without it, civilization as we know it would cease to exist. Let’s take a look at a few ways the world would be a different place without steel.

Skylines would be incredibly boring.

Structures such as skyscrapers and towers would be inconceivable without steel supports and cables. Therefore, buildings would be low-rise at their tallest, making densely populated cities devastatingly uncomfortable. It’s hard to imagine a world without the likes of the Burj Khalifa, the Eiffel Tower or the Empire State Building, all of which utilize steel as a main construction component.

We’d have very few options for dinner.

The food we eat today has been refined in factories with steel tools, processed with steel equipment, baked in steel ovens and preserved in steel cans. It is delivered to us via steel trains on steel rails, or by steel trucks over steel-reinforced roads. As such, in a world without steel, our food sources would be limited to what could be cultivated locally and the possibility of faminewould be persistent.

Getting in touch would take for-ev-er.

(Image source: http://bit.ly/1dgLFuc)

Without steel to manufacture telephones, computers or even mail trucks, we would be stuck relying on less than efficient carrier pigeons (which were actually a thing a few thousandyears ago) or the pony express. So much for instant connection.

Reading material would be extremely limited.

(Image source: http://bit.ly/1tNFW6q)

Newspapers, magazines and books we read today are mostly printed on a steel press. Even the paper is made from wood which is cut with steel implements and processed in steel machines. Mind you, there wouldn’t be any steel-plated pens, either, so quills would be used to write and copy the material. Of course, there might be bronze movable type printing, but it would still take a very long time and amount of patience to carry out.

Disease would run rampant.

Stainless steel has contributed greatly to improved sanitation in hospitals, restaurants and other public environments, and has helped to save the lives of millions. Easy to clean, it is more hygienic, impervious to corrosion and scratch-resistant, and is capable of standing up to harsh sterilizers, heat and heavy use, preventing deadly bacteria from surviving on its surface. Without it, the constant threat of diseases such as Ebola and measles would be very real.

Unemployment would rise and the economy would crumble.

Crude steel production reached 1.66 billion tons worldwide in 2014 which only says one thing about our world… it’s growing. It’s estimated that more than 95 countries are producing steel today, with more than two million employees worldwide, and a further two million contractors and four million people in supporting fields. Without this vital industry, the world economy would suffer and many people would be without jobs.

A glimpse into the world of steel

Fortunately, we do live in a modern world where steel does exist and its importance is clear. Yet few people tend to notice it, or understand how it works. Which is why TenarisUniversity, in conjunction with the World Steel Association’s steeluniversity, has launched the massive open online course (MOOC), “Introduction to Steel.”

This lively online learning program will feature the basics of steel melting, steel’s historical and cultural context, its relationship with society and the sustainability of a world supported by steel by utilizing everyday examples, demonstrations and film footage of steel making. Additionally, it will encourage community interactions between students and the professor.

“We believe in the highest standards of education to develop people all around the world,” Rolando Lange, Director of TenarisUniversity noted. “With this MOOC, we hope students will get passionate about steel as a material and learn about the critical role it plays in our society.”

Comprised of a four-hour framework, the course is open to all free of charge. It starts on June 2 and will run for two weeks. Registration is now open. Click here to enroll in the class, or for more information.

On October 15, OECD and the Ministry of Employment and Labor co-hosted a conference on ‘Employment and Skills Strategies’ in Korea. At the conference, POSCO announced a report on its management result and the best practice cases of POSCO’s National Human Resource Development (HRD) Business, under the title of ‘Mutual Growth Through Talents Cultivation for Small and Medium-sized Enterprises (SMEs)’. As POSCO continues its history of being nominated as the Best Consortium Education Institution and the chair of the Council for Shared Growth Human Resources Training for seven consecutive years, we would like to introduce you today about what POSCO is offering for the National HRD Consortium Business.

National Human Resource Development (HRD) Consortium Business
As a crucial company that has been influencing the national economy since the 1960s, POSCO has been conducting its social responsibility by responding to the government’ request on Korea’s human resource development and SME cultivation with HRD Consortium department starting from 2005. The National HRD Consortium Business is a platform that major companies with excellent education infrastructure supply free trainings for employees of SMEs that are relatively short in learning opportunities. As an exchange, the government provides partial expenses to the major companies that operate the National HRD Consortium Business. With outstanding education content, the latest facilities and the 40 years of know-how, POSCO has been leading the nationwide consortium business.

Training Curriculum: From Recruitment to Retirement
Currently, POSCO is providing total 130 courses under the categories of technology, safety, IT, and ethics. Customized for each trainee companies, the courses provide a wide range of lectures from technical education for newcomers to E-MBA curriculum for executive members and even ‘Green Life Design’ program for prospective retirees.

Methodical Development of Talents for SMEs
Not only are the education trainings provided but also education consulting, systematic on-the-job training, learning systematization and many more programs are offered in order to implement appropriate solutions to reinforce the trainee company’s competence. The ‘S-On-the-Job Training’ is a program that supports systematic skill development, especially the program focuses on each corporation’s own necessity at the site. Also, the learning systematization is a business model that is designed to share the practical knowledge and know-hows that only the on-site workers could possess. Through these training programs, POSCO supports its hundreds of trainees to learn essential techniques and progress autonomously as they return to their work fields.

Cultivating Professional Talents and Field Oriented Skills

The ‘Corporation University’ and ‘Work·Study Parallel System’ have been operating since their launch this year. A long-term curriculum for prospective hires or current employees, the ‘Corporation University’ curriculum even supports those without undergraduate degrees in order to nurture them as highly skilled professionals through intensive technique trainings. The ‘Work·Study Parallel System’ is a government program created in 2013 for corporations to hire job applicants as learning employees in order to systematically train the requisite talents for the corporation. After completing 1~4 years of the training programs and assessment process, the learning employees are translated into full-time employees. With current registrations from 112 people of 21 partner companies, POSCO will develop curricular that are apt to each company’s demand and initiate the curricular starting next year.

Donghoo: The Best Practice Case of POSCO’s Human Resource Development (HRD) Business
Established in 2010, Donghoo was a start-up company that provides advanced steels for energy to POSCO. To produce these steel products, craftsmanship and technical skills are essential qualities for employees. However, due to the fact that 80% of their total employees are considered novice, stabilized operation of its factory seemed somewhat difficult. In order to amend the condition, Donghoo participated in the POSCO’s HRD Consortium Business. Their newcomers started with POSCO’s 3 months program and continued to receive organized education to advance as professionals. Donghoo’s consistent endeavor on education evidently appeared as an apparent growth in their management index. In addition, the training programs have granted faith and confidence, which are much more valuable asset to Donghoo. According to Kim Yong-soo, the CEO of Donghoo, they will continue to actively utilize the curriculums of the HRD Consortium in the future for further progress.

Since POSCO is fulfilling its social responsibility and SMEs are learning beneficial trainings without any cost, the HRD Consortium is truly an innovative and productive system that seems to be critical to building national competence in the future. As the Best Practice organization of the National HRD Consortium, POSCO will continue its role as an educational infrastructure that contributes to consistent and shared growth of the 21^st century.

POSCO hosted the 26th POSCO Family Technical Conference at POSTECH on August 20 and 21. The Conference is a special festival for engineers designed to raise the company’s technical competitiveness to the next level. Since it was first held in 1989, the conference has developed into an annual event that stimulate the development of new steel technology and enhance shared growth and customer values by reinforcing technical competitiveness across the POSCO family.

CEO Ohjoon Kwon stated in his opening speech that the key to overcoming current crisis facing POSCO is the ‘realization of technical POSCO’, and that participants should awaken the passions within them. Kwon asked engineers to take responsibility and reinforce the intrinsic competitiveness of steel through solution marketing. Also, he emphasized that “POSCO needs to hold a dominant position over competitors by maintaining an unapproachable technical barrier, and as POSCO is striving to foster the new growth industry through choice and focus, everyone should actively participate in securing a future mega growth engine”. Kwon also encouraged cooperation between engineers and researchers as well as the technical exchange between processes, for the acceleration of technical development.

A Place to Share Information and Discuss Various Topics 

On the first day of the conference, 24 sessions focused on clients’ use of products and manufacturing technology were held. 23 experts invited from local and foreign universities, research centers and companies presented theses and shared research results throughout each session. Those from POSCO family companies, outsourcing partners, clients, suppliers, universities, research facilities as well as POSCO employees also participated in the discussions, which made the event more meaningful.

Meanwhile, a technical discussion regarding POSCO’s main issues was held on the 21st. Over 2000 people involved and interested in POSCO were involved in this year’s conference and the participants actively engaged in the discussions! There were 24 sessions held on the first day and 28 on the second, while an overall of 249 theses were presented during these sessions. An outstanding total of 6450 theses have been presented throughout the history of POSCO’s technical conferences. It’s quite a lot, right?

The POSCO Family Technical Awards, a Motivation for Development 

At the ‘POSCO Family Technical Awards ‘ held on August 20, POSCO encouraged technical development by awarding 27 projects which achieved outstanding results and contributed to POSCO’s technological competitiveness.

Five projects including “The Establishment of Low-Cost Clean Steel Manufacturing Process based on Operations of Steelmaking Models” received the ‘innovation awards’, which is the top prize. Seven projects including “R&D of the Water Supply System for Reduction of Viscosity Bubbles in Ocean Discharge” received the ‘creative awards’, and eight projects including “The Development of Precise Control Technique for the Secure Supply of World’s Top Directional Iron Loss” received the ‘takeoff awards’. Nominees for the POSCO Family Technical Awards which holds the highest authority amongst those in POSCO Group’s technology unit, are selected strictly and fairly by judges upon standards such as achievement, technology and field applicability. The ‘challenge’ awards, ‘persistence’ awards and ‘unique idea awards’ which were newly established last year, were given to projects which lacked the ability to apply ideas to the field but developed know-hows in the process that could be used for future technological development.

This year, POSCO encouraged employees to produce even more successful results by increasing the reward of the top prize to 150 million KRW, which made the total cost of rewards a staggering 1.29 billion KRW.

Over 1,600 POSCO and POSCO Family company employees including affiliates, foreign branches, and suppliers attended the event. It encouraged those that contributed to best innovation practices, and the participants resolved to reinforce competitiveness through continual innovation activity implementation.

The IF 2013 theme was ‘Sun Tzu meets Darwin!’ which presented the POSCO Family method of pursuing forward movement in a challenging competitive environment in an interesting manner, by combining Sun Tzu’s ‘Art of War’ and Darwin’s concept of ‘Survival of the Fittest’.

 A film was shown at the event depicting the principle of ‘survival of the fittest’ in nature by matching the strategies in ‘Art of War’ with various topics including a whale’s survival strategies, the cooperative efforts of emperor penguins, the environmental adaptations of basilisk lizards, photogenic plants created by outcrossing, and the dragonfly’s eyes which can see 360 degrees, to great audience appeal.

 The event included an award ceremony for individuals and organizations that created superior innovation outcomes in 2013. A total of 71 best practices were selected, 31 for POSCO and 40 for POSCO Family companies, as best practice through evaluation focused on organizations and projects that directly contributed to results based on innovation management.

POSCO CEO Chung Joon-yang declared, “We should overcome business crises through innovation the level suitable to each situation and through vigorous cooperation. We should implement process-based business methods and pursue excellence through a ‘first-class’ spirit.”.

In addition, various performances were presented by POSCO Family employees between sessions, creating a lively atmosphere for the event.

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