The POSCO Charter of Corporate Citizenship states the following: “We nurture a robust business ecosystem with business partners.” For that purpose, it continues, “We support client success by providing the finest products and services.” This is why the three POSCO employees have been getting together outside of work.

l POSCO’s Exceptional Client Support Service

HAPIS Co., Ltd. has been receiving hot-rolled steel from POSCO and producing ‘Lightweight H-shaped steel’ since 2010. ‘Lightweight H-shaped steel’ is used to reduce weights in construction, machinery, and other structures. Since it is manufactured by welding three narrow hot-rolled steel into an H-shape, welding technology is of most importance in product quality. At HAPIS, the technicians do the welding themselves, but most of the time, they utilize welding equipment called a ‘high-frequency welder’.

▲ CEO Jong-Ee Choi working with a high-frequency welder.

Despite being an SME, HAPIS was the second major manufacturer in the domestic lightweight H-shaped steel market. However, over the past decade, domestic demand has declined by more than 50%, and the struggle to compete with the market leader hasn’t been successful as well. These factors have led sales to diminish. HAPIS tried to overcome this by pioneering overseas markets in Japan, the United States, and so on but failed to meet the required product quality. HAPIS CEO Jong-Ee Choi said that it felt like he was on a dead end.

“10 years of product development is relative, but not so short. I collected all the books by my own and read and studied, but it seemed that the last puzzle was not filled. I felt like I was on a dead end.”

▲ CEO of HAPIS Co., Ltd., Jong-Ee Choi

CEO Choi spoke out his difficulties to the POSCO Marketing Office, “I want to export lightweight H-shaped steel, but the quality isn’t as good as that of competitors’. What should I do?” Suggesting a solution to this question wasn’t easy, but the following three months brought about things that made up for the last decade.

POSCO’s Joon-Ho Lee and Ho-Jin Kwon — both in charge of HAPIS at the POSCO Construction Steel Materials Marketing Office — set out for the project immediately. On comparing the competitors’ lightweight H-shaped steel products with those of HAPIS, the difference was apparent. The weld bead* of HAPIS products wasn’t as neat as the competitors’. If the bead isn’t neat, not only does it harm the appearance, but it can also cause corrosion when the product is painted or plated — thereby resulting in issues with the durability of the product. *Bead: An elongated strip of metal that is formed along the weld when welding steel

Since lightweight H-shaped steel is produced with a high-frequency welder, the importance of equipment maintenance was obvious. The Marketing Office concluded that this was the key to resolving the issue, and soon requested help from the Maintenance Technology Department of Pohang Works. That’s how a field engineer and an expert technician from Pohang came all the way to Pyeongtaek. Working on this project from September to November, their three months were quite intense.

As a result, by November, even a non-expert could identify a significant change in the quality of the lightweight H-shaped steel produced. When overseas buyers visited, they were surprised at the reformed outcome.

▲ The lightweight H-shaped steel weld bead condition of HAPIS Co., Ltd. — before the solution (left), after the solution (right).

CEO Choi said, “When you mention the service of a steel company, it’s usually about handling claims after the product is supplied. However, from my experience, POSCO’s service is different — and exceptional. A/S stands for after-sales service, but this word would be unsuitable for POSCO’s service. POSCO helps in developing the product, maintaining equipment, and it even finds customers for the products. Just like the innovation in our product quality, I could see that POSCO’s support service had also changed tremendously.”

l The Tenacity of HAPIS Sparked a Fire

This support service was special to POSCO too, since a high-frequency welder doesn’t exist in POSCO. How could POSCO utilize equipment — that they have never dealt with before — and completely transform product quality in just three months? POSCO Newsroom sat down with POSCO’s technician, engineer, and marketer at HAPIS to listen to their stories.

Q. How did the solution for HAPIS begin?

Mr. Kwon: HAPIS wanted to extend its business abroad. POSCO introduced HAPIS’ products to overseas buyers, but it didn’t work out well at the time due to quality issues. At the Marketing Office, we decided to go for another try after enhancing the quality.

Q. Why did both a technician and an engineer come together?

Mr. Cho: When the Marketing Office ask us for support, we arrange the best experts and visit the site. This time, we had to deal with unfamiliar equipment, a high-frequency welder. So we needed a technician to understand the equipment, and an engineer to theoretically verify the given solution and establish a process. That’s why technician Kim, a veteran with more than 30 years of experience in the field, and I, an engineer, have been dispatched here.

Q. Could you see any possibilities when you first came?

Mr. Kim: Actually, I was worried at first. Because there are only a few places in Korea where high-frequency welders are used. I had only seen it a few times at other client companies before, so I didn’t have much information. However, when I came here and met CEO Choi, he showed me a tremendous amount of data that he had collected while studying himself. This data was his tenacity. CEO Choi then showed me the competitor’s products. To be honest, I felt a strong urge. If someone could make it, so could we. I wanted to try it even if it didn’t seem possible.

Q. Even though you were enthusiastic, it must have been quite a challenge.

Mr. Cho: Our seniors went through a lot. They had to start everything from scratch. They found books in the library, translated them, studied them, and continued to exchange information with CEO Choi. There are some people who rely fully on POSCO and just wait for support but Mr. Choi was different. Mr. Choi continued with his research and provided the data to us. Seeing him was a huge motivation.

Mr. Kim: Many people say, ‘With 30 years of experience in POSCO, you must know everything in a glance.’ But in reality, this isn’t easy. Since the solution we provide must lead to benefits that customers can feel. Especially, in this case, we had to deal with high-frequency welders that weren’t our specialty, so I was quite worried. But I put in all my effort into this project because the Marketing Office told me that if the weld bead is revised, this client will make significant progress.

l The Real Solution Starts Now

Q. It looks like you’ve come up with a solution.

Mr. Kim: Many factors affect weld beads like the amount of electric current, the welding angle, and so on. Each factor was thoroughly diagnosed and tested. When you melt the upper and lower surface to affix it in the H-shape, a burr* is created at the melting spot. By purging** this part, we were able to tidy the bead surface. In the past, the welded steel was cooled with water-soluble coolant, but we assumed that this harms the product quality. We are currently testing this hypothesis, but we think that since the coolant is also water, its decomposition — into hydrogen (H) and oxygen (O) — interferes with weldability. Further details are the client’s core technology, so I can’t tell you more. (laughs)
*Burr: a thin, fin-shaped surplus that is formed when processing metal
**Purging: A method of blocking the inflow of oxygen using antioxidant gas to prevent oxidation of the welding spot during welding.

▲ Lightweight H-shaped steel produced by HAPIS

Q. So is the solution done?

Mr. Kwon: No. In fact, it’s just begun. The perfect solution would be the standardization of the product. We have succeeded in producing a product with the desired quality. And now we have to make sure that this continues. For example, when producing 100 products, all of them should be of this same quality. That’s standardization. If this is accomplished, the client can continue to make products with this quality without us. Our marketing must then find a market so that the products could be sold to more places.

Q. Improved product quality will lead to increased sales. Are there any other expected effects?

Mr. Cho: High-frequency welders use a lot of power, but after applying the proposed solution, we could see that the amount of electricity used was reduced. If we can weld with less electricity than before, it can reduce production costs. Currently, HAPIS pays 30 million won per month for electricity, and if the power usage is reduced by 10%, it can save the labor cost of one person per month.

l The Challenge Extended to High Strength Steel

The work on standardization is still on progress. But these pioneers don’t plan to stop here.

Q. Now that product quality has improved, what plans do you have for the next step?

Mr. Choi: In the past, I wasn’t fully sure about our products. I was aware of the weakness in our products, so I couldn’t actively venture into the export market. But now I have full confidence in our products. Some time ago, a foreign buyer visited, and he was surprised to see the improved quality of the bead. He said that if we showed this welding on high strength steel, he would like to place an order. So, with POSCO, we are looking for a solution that meets the needs of buyers from other countries.

Mr. Kwon: Each country has a different and strict welding evaluation criteria. To meet each requirement, we will supply POSCO’s finest steel materials and research welding technology that is appropriate for high strength steel. We got the quality we aimed for, so we will be supplying samples to the overseas buyers. We will join forces with other POSCO affiliates like POSCO International to help HAPIS make the deal.

Q. It must have been hard for you to go back and forth from Pohang to Pyeongtaek. How does it feel now that you’re almost done?

Mr. Kim: It’s too early to answer that question. As I told you, we still have a long way to go. (laughs) The last time we did a tensile test with CEO Choi, the results came out well, and Mr. Choi held out his hand for a handshake without a word. At that time, I realized how important this was to HAPIS. The past three months were a challenge for us too but I have to say, I could feel a sense of accomplishment too.

Mr. Cho: We’ve supported solutions to more than 30 clients this year. Some companies don’t have engineers like HAPIS, so they have no place to ask for help. Our team was organized to resolve these clients’ difficulties and share a win-win with POSCO. There are many tasks ahead, but we will do our best as HAPIS trusts us.

Mr. Kwon: POSCO’s marketing doesn’t end with selling steel. It’s also our job to support our clients who buy our steel products so that they can sell more. The clients who get our help respond by changing their steel to POSCO steel. It’s really rewarding to build trust with each other and see sales increase. As the domestic steel economy has been staggering for a long time, we will spare no efforts to support SMEs strengthen their competitiveness, and find places in overseas markets.

It is no surprise that POSCO is collaborating with various business partners — such as client companies, affiliates, and so on — to create a stable steel business ecosystem. POSCO is contributing to various aspects like product development, equipment maintenance, and market development. Since these areas are the most challenging to SMEs, and can’t be achieved in a short period of time. ‘Shared Growth’ and ‘Solution’ are some of the most used words across all POSCO departments.

POSCO hopes that HAPIS will successfully accomplish the tasks that lay ahead and succeed in the overseas market.

One of the key ingredients of a sophisticated mold processing is the molding plate, which is a flat material used in mold making. Since 2014, POSCO and Shinjin ESCO have been leading the high-end mold plate market based on solid cooperation. We introduce broad ventures from technical cooperation to comprehensive all-round solution marketing activities with Shinjin ESCO.

ㅣQuality Improvement and Cost Reduction through Breakthrough Cutting Technology

Previously, there were neither a particular technology nor specialized manufacturers in the cutting equipment market for mold plate production. Most small and medium-sized retailers practiced oxy-fuel cutting method. It was the mechanical high-speed cutting technology brought about by the Circular Saw, jointly developed by POSCO and Shinjin ESCO, that has radically improved the mold plate quality and its processing efficiency.

Originally, it was inevitable to perform additional annealing due to oxy-fuel cutting method that has a rough cutting plane and heat treatment on the surface. This also generated the unnecessary loss of plate parts.

Mold plate production process

POSCO and Shinjin ESCO jointly developed this machine cutting method to resolve these problems once and for all. This machine cutting method enables precise cutting without heat treatment which does not require an additional surface treatment process. Hence, not only is smooth finishing possible, but the optimized procedure and cost reduction also ensue.

Comparison of thickness, width, and length during rough grinding

ㅣNo to Low-Cost Chinese Products, Yes to Top Quality POSCO Plates

In addition to lack of expertise, low-priced Chinese thick plate imports account for 90% of the domestic mold plate market which explains the sluggish advancement in the domestic mold plate market. No matter how exceptional the processing technology is if the quality of the thick plate is poor, it is difficult to see through the fine design details of the finished product with high degree of perfection. Using solely POSCO thick plates, Shinjin ESCO has a competitive advantage over other mold plate makers.

ㅣPOSCO & Shinjin ESCO Form Win-Win Partnership through Solution Marketing

From technological cooperation to product marketing and sales, POSCO and Shinjin ESCO Solution Marketing has extended far and wide. Most importantly, the thick plate Circular Saw jointly developed by long-term technical cooperation facilitated the advancement of plate mold technology. As POSCO, the manufacturer of thick plates, works directly with the mold plate maker, it allowed the replacement of low-quality Chinese imports with high-quality domestic plates. As a result, Shinjin ESCO is greatly competitive in comparison to other makers, while POSCO is able to secure stable plate retailers.

POSCO and Shinjin ESCO will further solidify their domestic sales target of 15,000 tons of thick plates by 2018. Additionally, POSCO expects to expand its cooperation with Shinjin ESCO, such as securing new importers of technology fee through commercialization of machine cutting technology and entering overseas businesses.

Durable Steel, a Foundation for Sustainable Solar Energy

Tolerance against corrosion is crucial for maintaining a long-lasting solar energy generating system. Once installed, the solar panel and its frame structures are exposed to external forces which can reduce electric power generation. To withstand exposure to wind, water, and salt, PosMAC was invented as a revolutionary coating layer that significantly increases the resistance to corrosion.

‘Simonkolleite’, the layer coating on the PosMAC provides strong resistance against corrosion. (Source: POSCO Youtube)

PosMAC stands for POSCO Magnesium Aluminum alloy Coating. Its oxidized layer called ‘Simonkolleite,’ the coating material of the steel that is composed of zinc, magnesium and aluminum that shows five to ten times higher tolerance against corrosion compared to that of other market steels. Beyond such highly competitive performance, PosMAC is cost-effective, providing a long-term financial benefit for both manufacturing and consuming parties. These secure and competitive qualities are key to PosMAC’s trendsetting role in the sustainability movement, reaching the growing solar energy market around the world.

Dominating the Global Solar Energy Market

The sales of PosMAC used for solar structures have been growing doubles each year since its public release in 2013. Domestically, the application of PosMAC is sought through Solution Marketing with solar support structure manufacturing companies including AJU STEEL, Daedong, NEMO ENG, and JEJU TOP SOLAR.

In the global arena, POSCO is engaging in worldwide conferences to publicize PosMAC’s advanced technology. A recent showcase was on May 21 where POSCO participated in the annual Mexican International Renewable Energy Congress, ‘MIREC WEEK 2018’ in Mexico, one of the biggest renewable energy conferences in the world. As the sole steel manufacturing participant, PosMAC’s broad capacity was successfully promoted to major solar EPC (Engineering, Procurement, Construction) companies such as NEXTracker, Soltec, and Axial.

POSCO promotes PosMAC’s superior corrosion resistance capabilities to the South American market at MIREC WEEK 2018 in Mexico.

Solution Marketing Shaping PosMAC’s Today and the Future

One of POSCO’s successful Solution Marketing is observed in joint efforts with AJU STEEL Company. AJU STEEL recognized the innovative traits of PosMAC, not long since its release, and identified various areas that would benefit from PosMAC’s outstanding durability.

PosMAC showed great performance particularly in Jeju Island, Korea where there is a higher degree of salinity, humidity and wind that accelerate steel corrosion. These rough environmental conditions had adverse effects on the durability of agricultural facilities. In spite of this, with PosMAC’s high endurance performance, AJU STEEL and POSCO sought to effectively prevent facilities from deteriorating in Jeju. With the success of adopting PosMAC in the agricultural structures in Jeju Island, AJU STEEL has constructed several facilities like bell pepper and banana farms making further use of PosMAC technology. It has undeniably contributed to advancement in agricultural structures.

Additionally, in efforts with AJU STEEL, PosMAC is being actively applied to solar structures and its performance is also highly reliable as marine solar panels that are also susceptible to severe external influences. AJU STEEL is further planning to expand the joint business from building structures into smart farming facilities, eventually seeking export outlets.

PosMAC has proven to be inevitable in building advanced structures which is the backbone of generating sustainable solar energy and bringing agricultural advancement. As such, POSCO has been marked as a dominant pioneer not only in resolving the structural problems of facilities but of continuously creating better living standards actively by encouraging and creating superior infrastructure.

This year, more skyscrapers will fill the skylines of cities, mostly in Asia. Continuing on from previous years, cities, architects and the general public alike are favoring low-energy, sustainable buildings and showing a tendency to renovate existing buildings with reinforcements where possible.

Take a look at 2 of the tallest skyscrapers built in 2017, and some of the most exciting building projects coming scheduled for completion in 2018.

2017: Ping An Finance Center

The Ping An Finance Center is located in the city of Shenzhen, and is the second tallest building in China and fourth tallest building in the world. The entire structure measures 599.1 meters, or 1,965 feet, offering 119 floors of office and retail space.

Stainless steel keeps the Ping An Finance Center protected against the strong winds and salty climate of Shenzhen. (Source: Kohn Pedersen Fox)

The Ping An Finance Center is classified as a composite building, meaning both steel and concrete materials are used to make up the main structural parts of the skyscraper. This can apply to any of the following combinations – steel columns with concrete beam floors, steel structure with a concrete core, steel columns encased in concrete or a system of steel tubes filled with concrete. The exterior is outfitted with a sculpted stainless steel facade for maximum corrosion resistance to coastal climate.

2017: Lotte World Tower

Korea’s Lotte World Tower is the tallest building in Korea and the fifth tallest building in the world measuring 555.7 meters and 1,823 feet from the ground to the very top. Construction began in Seoul back in 2011 and took 7 years to complete. The 129-story building is made of a reinforced concrete core, concrete encased steel columns and steel floor spanning.

Seoul’s Lotte World Tower was built with 40,000 tons of steel. (Source: Arch Daily)

POSCO supplied the 40,000 tons of steel to build the Lotte World Tower, consisting of both regular and thermomechanical control processed (TMCP) steel. As part of POSCO’s solutions marketing, the company proposed using 120 mm thick high-performance grade steel (SM490TMC) instead of welding 40 mm and 80 mm thick plates together for better performance and cost efficiency. The steelmaker also proposed the use of a steel column flat plate structure and steel piping for enhanced shock, high-wind and fire resistance.

Lotte World Tower also features solar panels, wind turbines and water harvesting systems as part of a sustainable, eco-friendly design.

SEE ALSO: Steel Wonders of the World: POSCO Steel Builds the World

2018: Hanking Center Tower

The Hanking Center Tower scheduled for completion in March of 2018, will set a new world record as the tallest all-steel building in all of Asia. Most skyscrapers are made of a mixture of concrete and steel, but the Hanking Center Tower is composed of a unique, all-steel structural system. The main body is also detached from the core by about 9 meters, held together by a series of sky bridges and steel braces to allow the building flexibility to withstand seismic activity and maximum exposure to natural light.  

The Hanking Center Tower is the tallest all-steel building in Asia. (Source: Curbed)

At 350 meters, or 1,148 feet, the Hanking Center Tower will be classified as a super tall building when completed in west Shenzhen, China. The building underwent extensive seismic and wind tunnel tests for performance verification, and residents and visitors alike will be able to enjoy the sky gardens and spacious open spaces in the heart of the city.

2018: Salesforce Tower

San Francisco has a new tallest building with the opening of the Salesforce Tower in January of this year. Standing at 326.1 meters, or 1,070 feet, the skyscraper also made extensive use of steel for its columns and floor spanning and features a reinforced concrete core. The Salesforce Tower is also one of San Francisco’s most-expensive buildings at USD 1.1 billion.

The Salesforce Tower is the tallest building in San Francisco. (Source: Curbed)

Not only is the 65-story building San Francisco’s tallest building, it is the city’s first commercial building to use a water recycling system. The city government, Boston Properties and Salesforce teamed up to support blackwater reuse that will give tenants of the building access to recycled water. The skyscraper also has net-zero greenhouse gas emissions.

2018: Comcast Technology Center

The 341.7 meters, or 1,121 feet tall Comcast Technology Center opened early this year, and stands as Philadelphia’s tallest skyscraper. The USD 1.6 billion building also has smart features, including a central plant that acts as the brain of the building, using artificial intelligence to learn human patterns.

The Comcast Technology Center is a green building with smart features. (Source: The Skyscraper Center)

The skyscraper can track the number of people inside, predict weather patterns and will only generate just enough energy required for any given time. The building also makes use of water running through all parts of the building to cool temperatures and has a special, silver coated glass which can repel heat from the sun. As such, the Comcast Technology Center is one of the most technologically advanced and green buildings in the U.S.

Continuing on from a strong year of construction in 2017, the new skyscrapers of 2018 and beyond will continue to strive for environmental sustainability, incorporate newer technologies and make extensive use of steel for cost efficiency and safety.

Since 2014, sales of products combined with Solution Marketing have tripled, and sales of POSCO’s World Premium Products (WPP) have increased by 56 percent.

It Wasn’t Always Smooth Sailing

When the 2008 global financial crisis hit, the global economy as a whole suffered. The steel industry experienced stagnant growth, even in its subsequent recovery. From 2012 to 2016, annual steel sales remained fixed at 35 million tons.

The 2008 Financial Crisis was felt in markets all over the world. (Source: South China Morning Post)

The main culprit for the slow recovery was overproduction, mostly from the heavily-subsidized Chinese steel industry. Between 2000 and 2014, steel production doubled from 800 million to 1.6 billion tons, exceeding the global demand for steel by 100 million tons.

As a result, steel markets around the world saw prices falling, layoffs and steel mill closures.

SEE ALSO: Asian Steel Watch: Megatrends Shaping the Future of the Steel Industry

A Strategy for Success

In order to stay competitive in a stagnant market, POSCO made the decision to focus on Solution Marketing and the sales of its World Premium Products (WPP) such as POSCO GIGA STEEL for cars and PosMAC for solar panels.

Solution Marketing involves hyper-customization for POSCO’s partners to deliver optimal material solutions for their products. Some notable projects this year have been with automakers GM Korea and Ssangyong Motors for the launch of their new models made of POSCO GIGA STEEL. POSCO gave them full support from development and R&D to testing and post-production evaluations, redefining the role of a steel supplier.

GM Korea and POSCO worked together to incorporate POSCO GIGA STEEL into the 2017 All New Chevy Cruze. (Source: GM Korea)

As a result, POSCO’s operating profit margin (individual basis) was 10.8 percent in 2016, making it one of the highest performing steel companies in the world. Its recovery and growth continued into 2017.

SEE ALSO: 6 Reasons Why POSCO GIGA STEEL is Ideal for Automakers

Cultivating the Industry

Following its continued success with Solution Marketing, POSCO is now determined to share its insights and technology with up and coming small and medium-sized enterprises (SMEs). POSCO has completed 32 shared-growth projects through which they work with SMEs to develop ways to cut costs, improve the quality of their work, provide financial assistance and education and training.

One of the most recent projects for shared growth is a collaborative business model called “System Construction” that provides a framework for effective technical cooperation among POSCO’s partners in the construction industry. The model was developed jointly with NI Steel and entails systemizing composite materials such as beams, floor decks, exterior panels and roofing materials, all based on joint R&D from both parties.

Under System Construction, workers from various sectors come together for joint development.

POSCO is continuing its efforts to advance its competitiveness by providing material and technical solutions to its partners, and along the way, fostering the growth of SMEs in various industries to ensure a more stable and robust economy.

Electrical Steel is used to make electric motors for EVs. (Source: Wonderful Engineering)

According to Markets and Markets, the market for electrical steel is projected to expand from USD 27.84 billion in 2016 to USD 38.98 billion by 2021, at a compound annual growth rate (CAGR) of 7 percent. Electrical steels go through various demanding production processes such as annealing, hot and cold rolling and insulation coating. Having the most advanced production technology is paramount, and choosing the best quality electrical steel will determine the overall performance and efficiency of EVs.

What is Electrical Steel?

Electrical steel, also known as silicon steel, is a steel alloy of iron and silicon used to make the cores of motors, transformers and generators.  This softer type of steel can generate various magnetic properties, has high permeability and low amounts of core loss. It has a small hysteresis curve, meaning reduced magnetic hysteresis as well as iron losses, or energy loss.

There are two kinds of structures for electrical steel; grain-oriented and non-oriented.

Grain-oriented electrical steel sheets are most commonly applied to transformers. (Source: Nikomag)

Grain-oriented electrical steel has a uniform, consistent direction of grains in its structure which allows for greater flux density and magnetic saturation. Most commonly, grain-oriented electrical steel is used for transformers which have a predictable and specific magnetic field direction.

Non-oriented electrical steel plates are traditionally welded together to form electrical motors. (Source: LHD Motor)

A major factor that determines the quality of electrical steel is minimal core loss. Due to the constant change in direction of the magnetic field, the energy that is created can easily be lost in the form of heat. Core loss reduction has to be achieved through high-quality electrical steels that have high flux density and lower levels of core losses.

POSCO’s Hyper NO

POSCO is one of a growing number of companies dedicated to doing its part in creating an environmentally sustainable future. That’s why POSCO has been developing its premium non-oriented electrical steel to provide partners with material solutions for EVs.

Take a look at the video below to see how Hyper NO can increase the performance and efficiency of electric vehicles.

POSCO’s Hyper NO is processed using innovative methods such as the self-bonding technology which replaces traditional welding procedures to improve the core’s bonding force. POSCO also managed to reduce core loss by 5 percent compared to traditional types of non-oriented electrical steel and reduce the motor noise by 5dB with its rolling technology that can process the Hyper NO down to an ultra-thin form of 0/15mm. These technologies, along with the Hyper NO’s high magnetic flux density will increase the efficiency of the motor and improve the overall performance vehicles to which it is applied. Hyper NO is highly sought after by automakers looking for premium-grade electrical steel to apply to their EV motors.    

In February 2017, POSCO expanded its production facilities at Pohang Steel Works to increase its annual production capacity of electrical steel from 80,000 tons to 160,000 tons, enough to produce 2.6 million motors for EVs. The strategic move is in line with POSCO’s commitment towards expanding environmentally-friendly businesses as well as its solution marketing efforts to provide customized material solutions to its partners.

Jong-sub Lee, executive VP of POSCO (third from right) explains POSCO’s products to Young-jin Kwon, Mayor of Daegu Metropolitan City (fourth from right) and Young-doo Kim, VP of Korea Gas Corporation (second from right) at the POSCO exhibition booth.

The Asia Pacific Gas Conference is the only gas-related international conference in Korea, first held in 2015. This year, under the theme of natural gas in the future energy market, more than 100 domestic and overseas companies participated, and showcased new technologies and products.

POSCO promoted its high manganese steel, 9% nickel steel, stainless steel and POSCO E&C’s LNG Terminal design and construction technology during the event.

The exhibition space at this year’s event was divided into Product, Solution, PR and Business zones, and on display were steel products related to LNG carriers, high manganese steel LNG storage tanks and onshore LNG storage tanks. In addition, visitors were able to experience the production of POSCO GIGA STEEL and POSCO’s smart via VR videos.

The conference covered topics such as the natural gas industry’s development plans, natural gas and LNG infrastructure as well as new transportation and storage technologies. POSCO also presented a case study of high manganese steel development and production during the part of the conference focused on new material solutions for the LNG industry.

Visitors to POSCO’s exhibition booth watch VR videos about the steelmaking process and the qualities of POSCO GIGA STEEL.

POSCO was able to take away key insights on the recent and future trends of the gas industry, create new business opportunities with potential customers and expand its business with existing customers during the conference. With the new-found knowledge and partnerships, POSCO will work to find more customized and innovative solutions for its partners in the gas industry.

Cover photo courtesy of APGC 2017.

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

Here are 6 more memorable highlights from 2017 so far.

1. POSCO’s First Lithium Extraction Plant

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

The opening ceremony of PosLX

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

2. Leading Supplier of Electric Steel Plates

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

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

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

3. Release of POSCO’s GIGA STEEL Ad

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

4. Commercialization of a High Manganese Steel Production Technology

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

Hot Liquid Steel

5.  Completion of 7CGL for POSCO GIGA STEEL

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

Opening ceremony for 7CGL (Source: Business Korea)

6. Completion of POSCO’s Steel Forming Laboratory

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

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

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

In-hwan Oh, President of POSCO, said, “We implemented a customer-oriented core research infrastructure to help us evaluate products in a production environment similar to that of customers. By doing this, we aim to develop leading technologies and provide preemptive and proactive solutions to customers.”

The Steel Forming Laboratory will be used exclusively to evaluate the products ordered by POSCO customers by looking at properties such as formability, weldability, coating weight, corrosion resistance, and fatigue life. These evaluations will also be used to provide basic customer support such as quality certification. The new Steel Forming Laboratory will primarily be used for more differentiated tasks such as providing application technology solutions involving steel products.

The Steel Forming Laboratory houses various equipment, including roll forming machines and presses, which are used to evaluate the formability of steel products such as POSCO GIGA STEEL and develop new forming technologies. POSCO is the first steelmaker in Korea to use the 2,000-ton hydraulic press in order to evaluate the formability of large components such as the side outers of automobiles. In addition, other equipment such as the high-speed crash test machine, full-scale fatigue test machine, and wheel durability test machine can evaluate the impact and durability of the molded parts of automobiles. They also provide customized analysis results using 3D scanners.

POSCO’s new Steel Forming Laboratory has various facilities for the evaluation and advancement of large components for customers. Above, a POSCO employee can be seen operating the 2000-ton hydraulic press, the first to be purchased by a domestic steelmaker.

POSCO will use these machines to implement its “POSCO One-Stop Development” system, making it possible to perform every step from developing application technologies for steel products to production verification testing without the involvement of customers, a move towards further reinforcing its Solution Marketing services.

Customers may find it difficult to adopt newly developed steel grades right away, but with POSCO evaluating formability (one of the mandatory criteria for selecting steel products) on behalf of its customers, the burden of selecting new steel grades will be reduced.

POSCO will continue to pursue shared growth by conducting joint research with not only large OEM companies, but also small and medium-sized parts companies that find it relatively more difficult to operate various testing machines.

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POSCO knows that car manufacturers must deal with unexpected issues during the production process. So, POSCO has expanded its services with Solution Marketing 2.0 in order to provide the application technology and commercial support that customers need. From planning to production, POSCO works hand-in-hand to ensure shorter processing times that move customers to mass production more efficiently.

History of Solution Marketing

Early Vendor Involvement (EVI)

In 2007, POSCO introduced its early vendor involvement (EVI) program. EVI allowed POSCO to participate in the customer’s product development stages, providing support for application technologies needed during manufacturing as well as in performance evaluation of the steel material. In 2014, POSCO expanded its EVI program with the implementation of the more advanced Solution Marketing.

Solution Marketing

With Solution Marketing, POSCO goes one step beyond its steel production to provide customers with the technological, commercial, and human resources support they need. With a focus on developing better relationships with customers, CEO Ohjoon Kwon has emphasized that “Solution Marketing should evolve into human solutions in which customers benefit from the expertise and relationships of POSCO’s dedicated employees.” Since 2014, sales of products combined with Solution Marketing have tripled, and sales of POSCO’s World Premium Products have increased by 56%.

Solution Marketing 2.0

In 2017, POSCO is launching Solution Marketing 2.0 to provide even better support to its customers. Solution Marketing 2.0 is driven by 3 core strategies:

• Innovate – by improving production speed, value, and standards
• Digitize – by providing highly advanced information technology
• Customize – by tailoring each solution to the client’s specific needs

These three strategies are specifically designed to put the customer’s success first and to help them understand the balance between a product’s features, price, and long-term benefits. Through POSCO’s Solution Marketing 2.0, customers are provided the tools they need to maximize convenience and efficiency in utilizing high-quality steel.

“We see POSCO’s success through the customer’s success. And we do not stop working until the customer is satisfied.” In-hwan Oh, President of POSCO

With Solution Marketing 2.0, this level of commitment is guaranteed to each client in every industry (see how Solution Marketing helped a pipe plant in Russia). For automotive manufacturers, Solution Marketing 2.0 helps streamline the production process and shorten setup time. Combined with POSCO GIGA STEEL, Solution Marketing 2.0 can help automakers manufacture higher quality, complex products in less time.

Solution Marketing for the Auto Industry

Solution Marketing for the automotive industry offers specialized support to clients in their setup process. The development process for automakers is composed of four steps: planning, design, building, and evaluation. Through each step of the process, POSCO works with customers to provide customized solutions, resulting in higher quality products and shortened production times. At POSCO China, Solution Marketing 2.0 provided automotive customers with the speed, value, and quality they needed to maximize convenience and efficiency for their production lines.

Step 1 – Planning

In deciding the car’s concept, design, and material of the car, POSCO provides information regarding the initial concept design including material properties and tear down results (including parts analysis after disassembly).

Step 2 – Design

The objective of step 2 is to confirm the design of the parts and the types of steels to be used. POSCO provides numerical simulations regarding collision safety, structural integrity, and formability in order to suggest final design concepts and applicable steels to clients.

Step 3 – Build

In step 3 the car is built with an eye toward mass production. Based on these results, POSCO provides the customer with a variety of guidelines on how to reduce defects while improving weldability. This helps the automaker apply improvements to the process and minimize manufacturing errors.

Step 4 – Evaluation

In the final step, the manufactured car and its parts are evaluated and assessed.

Evaluations on the car’s durability, structural stiffness, and crash performance can be provided. Also, corrosion and coating performance are analyzed in order the car manufacturer to make further enhancements for long-term performance.

For today’s auto manufacturers facing stricter standards in fuel efficiency and safety, POSCO GIGA STEEL offers the best solution to meet their needs. It offers superior strength and formability for manufacturers while also being lightweight and fuel efficient for consumers.

But POSCO’s commitment to auto manufacturers goes beyond providing advanced steel solutions. With Solution Marketing 2.0, POSCO works with customers from planning to production to ensure success.  

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