For several years, the steel industry has taken measures to eliminate these issues, and the effort is ongoing. What are some of the key issues surrounding the industry’s air quality management? POSCO Newsroom presents worldsteel, “Air Quality Management.”

The steel industry recognises the importance of the issues surrounding emissions to air and their impact on ambient air quality, human health and the environment.

For decades, the steel industry has taken measures to address these issues, thereby significantly and demonstrably reducing emissions per tonne of steel.

▲ worldsteel.org – Source: UNECE Convention on long-range transboundary air pollution

Steel, whether produced via the integrated, direct reduced iron or electric arc furnace route, requires the transport, storage, handling, heating and transformation of raw materials.

All these processes have the potential to generate emissions to air *, primarily in the form of dust (or particulate matter (PM), sulphur dioxide (SO2), and nitrous oxides (NOx). Other emissions generated in small quantities include dioxins and heavy metals, typically attached to dust particles.

Today, all steel plants are subject to environmental regulation, which set requirements to restrict emissions to air. This regulatory framework is translated into an environmental permit (or licence to operate), which establishes plant-specific Emission Limit Values (ELVs) covering the primary emissions to air, dust, SO2, and NOx, and in most cases other
emissions.

The environmental permit also sets monitoring requirements and it is common for steel plants to have additional requirements within the permit, such as maximum production capacity, emission ceilings for specific emissions, taxes or fees on emissions or specific reduction targets.

l Emissions from Stacks versus Diffuse and Fugitive Sources

Stack emissions are released at height from identifiable sources (point sources) and are dispersed in the atmosphere. Diffuse and fugitive emissions (non-point sources), contrary to stack emissions, originate from an area, such as a stockpile or a road.

Stack emissions are managed using a variety of controls, such as beneficiation (i.e. removing potential contaminants before further processing), yield/process optimisation (‘more with less’), combustion control, abatement technologies (i.e. bag filters, electrostatic precipitators (ESPs), wet scrubbing systems, activated carbon adsorbers, cyclones, mist eliminators, etc.), source monitoring, incident investigation, plant inspections, source modelling and targeted plant maintenance regimes.

Stack emissions from the steel industry are managed to be well below prescribed ELVs. Exceedances are infrequent and occur in most cases during process disturbances. In these cases, authorities are informed and investigations carried out to identify the root cause, prevent recurrence and drive continuous improvement.

Emissions from iron and steelmaking operations, including cast house floor emissions from blast furnaces, are controlled via secondary dedusting systems (i.e. bag filters, wet scrubbers, ESPs, etc.) with a collection point inside the building. Occasionally, for safety reasons, the flaring of process gases is required. In this case the gases will have been filtered beforehand.

Diffuse emissions are mainly associated with material handling, stockpiling and transport activities. A variety of controls are used to manage potential emissions from these activities, such as minimising volumes of material stored, stockpile design, watering of stockpiles and roads, application of surface sealants, use of enclosures for bulk material storage, paving and sweeping of roads, dedusting of transport belts or use of closed belts, windbreaks/vegetation and video surveillance.

In addition to these measures, several tools are used to proactively manage emissions, such as weather alert systems, ambient monitoring, plant inspections/audits and risk/incident management systems.

Fugitive emissions, such as emissions generated from the roof of some buildings or emissions escaping from valves and evaporation of solvents are typically controlled and managed through maintenance and monitoring.

Diffuse and fugitive emissions are commonly regulated through the application of regional ambient air quality standards, which are based on an assessment of modelled or potential impact on the ambient air quality at selected ambient monitoring locations in the neighbouring area.

l Regulatory Framework

An environmental permit is a requirement for the operation of a steel plant. The permit is based on an assessment of the environmental impacts of
activities and most permits set ELVs in addition to defining monitoring and reporting requirements.

Environmental permits are typically reviewed periodically, or in case of production increase, construction of new facilities, new/revised environmental standards, or when new substances are identified.

• Environmental permits and ELVs must be based on sound science with respect to the potential risk to human health and the environment, and they need to be achievable.
• Environmental permits should never prescribe the use of a specific technology but should allow requirements to be met with a technology/practice of choice. To guarantee the smooth operation of the plant and the optimal protection of the environment, the permitting process must ensure legal and planning certainty.

l Holistic Environmental Assessment

Advanced abatement technologies require energy and other operational supplies to provide effective emission control. For example, wet dedusting technology requires significant amounts of water and electricity as well as chemical additives. To ensure an optimal environmental outcome, it is necessary to consider the impact of the prospective air emission abatement control technology on other environmental aspects (i.e. water pollution, waste generation/treatment requirements, energy requirements and greenhouse gas emissions), commonly known as the cross-media effects.

• When considering a suitable abatement technology for a specific emission source or production process, it is essential to take a holistic approach to the potential environmental impacts and consider the overall sustainability of the technology.

l Application of Emission Reduction Technologies

Every steel plant is unique, for example, in relation to geographic location, the proximity of sensitive receivers, the scale of operation and production processes. Therefore, a robust environmental risk assessment, including analysis of potential cross-media effects, is essential to ensure that identified emission reduction technologies are fit for purpose and sustainable for application at a specific steel plant.

Technical considerations should contemplate aspects such as the applicability to new and/or existing plants, specific operating conditions and types of raw materials and fuels.

• Since every steel plant is unique, it is essential to assess and ensure that identified emission reduction technologies are fit for purpose and sustainable for each application.

Stack emissions from power generation, industrial processes and the steel industry contribute to general background levels of air pollutants and form part of a larger set of physical agents found in the atmosphere. Emissions from natural sources such as forest fires, soil, pollen and sea spray also make up a large part of the background levels.

• Reducing emission generation from point sources improves regional air quality.

Diffuse and fugitive emissions, particularly dust emissions, are typically emitted close to ground level, and as such predominantly contribute to local air quality and tend to raise visual amenity issues.

Other emission sources impacting on local air quality include road traffic, transport, domestic heating, construction and demolition, bulk material handling and agriculture.

• Effective control of emissions closer to ground level drive improvements in local air quality.

l Monitoring of Air Emissions

The steel industry conducts extensive air emissions monitoring to follow up on permit requirements and identify opportunities for continuous improvement.

Monitoring in a typical steel facility includes source monitoring of emissions to identify potential sources of dust, NOx, SO2, and heavy metals. This monitoring combines extractive testing and continuous or online monitoring and reporting to the authorities.

Many steel plants also maintain, or support, broader ambient monitoring networks on the perimeter of the facility or in the neighbouring community of total suspended particles (TSPs), PM10, PM2.5, NOx, SO2 and sometimes heavy metals. Other types of monitoring include deposition monitoring and biomonitoring.

In addition, most steel plants have invested in air quality modelling and other established management activities such as targeted audits/inspections, video surveillance, environmental readiness and community hotlines.

These management practices are designed to determine the steel industry’s ambient air quality contribution, assist in identifying the sources of emissions and drive improvement.

l Health and Environmental Effects

Air pollution has recognised environmental and health effects. Air quality standards are therefore established to prevent, reduce or avoid adverse impacts on human health and the environment.

Through the application of advanced abatement technologies, comprehensive management practices and a drive for continuous improvement, the industry aims to minimise emissions to air and thereby their impact.

• The steel industry engages proactively and constructively with permitting authorities and its stakeholders to respond to emerging health and environmental issues.

l Going Forward, What Are Our Key Focus Areas?

Diffuse dust (dust from material handling, stockpiling and transport activities) is the most visible particulate matter generated by the steel industry. While significant technology and management improvements have been made in the past decades, managing diffuse dust remains a challenge.

Because steel plants are often surrounded by residential areas, either for historical reasons or due to growing rapid urbanisation, the steel industry needs to further engage with local communities to discuss any concerns they may have, leading to an ongoing partnership.

Another area of critical importance is the further refining of sophisticated air quality modelling systems (dispersion modelling), which can determine the share of steel industry activities on ambient air quality and demonstrate improvement over time.

* Emissions to air have the particularity of having a local or regional reach as opposed to CO2 emissions, which have a global impact, and are therefore not covered in this report.

The full length of the worldsteel’s position paper, “Air Quality Management” can be downloaded here.

Although growth in steel demand remains positive, the YoY growth rate is indeed slowing down. In the recent publication of the April 2019 Short Range Outlook (SRO), the World Steel Association (worldsteel) projects the 2019 global steel demand will reach 1,735 Million tons – a 1.3% YoY increase. In 2020, demand is projected to grow by 1% to reach 1,752 Million tons.

Undeniably, when compared to the 2018 growth rate of 2.1%, the demand growth across the globe is steadily diminishing.

Last December, when POSCO Research Insitute released its 6th issue of Asian Steel Watch, a biannual English Journal that focuses on the Asian steel industry and market, it conducted an extensive interview with Mr. Lieven Top who specifically discussed the challenges steel industry is facing.

POSCO Newsroom followed up with Mr. Lieven Top, the Chair of the OECD Steel Committee at the time and now a member, to hear his perspectives on the issue. What are some of the challenges the global steel industry is facing and what are the implications of such challenges for POSCO as it looks towards the next 50 years?

▲ Mr. Lieven Top, OECD Steel Committee Member (Source: Asian Steel Watch)

Just like any other industry, the steel industry is subjected to the effects of important changes in the global economy. According to a recent OECD analysis, global GDP growth forecasts were revised downward for this year as well as 2020.

<OECD Interim Economic Outlook Projections>

▲ Year-on-year, %. Arrows indicate the directions of revisions since November 2018. (Source: OECD)

It can be expected that this change, could cause a negative evolution in various fields, such as trade conflicts, and deterioration of confidence for companies and consumers.

For the steel sector specifically, there were extra downturns with decreasing market prices in 2018 which was accompanied by a substantial increase in crude steel production by almost 5%. The growth of steel consumption, on the contrary, slowed down in numerous large economies. Despite the efforts by some economies like closing down a limited number of capacity, this causes a continuation of overcapacity at a high level. This remains the key challenge of the steel sector worldwide. As long as this structural imbalance between steel capacity and production persists, we are looking at the picture of a struggling sector facing high risks going forward.

▲ *CIS: Commonwealth of Independent States (formerly the USSR)

The only way forward to a fundamental healthy steel future is clear: a significant decrease of this excess capacity. In the seventies, this was demonstrated by the ‘plan Davignon’ dealing with precisely this type of situation of excess capacity in western Europe. One of the painful lessons learned was that the longer one waits with the necessary decisions to reduce significantly, the more difficult it becomes for steel companies, investors, state budgets and the future of workers and their families.

A substantial and crucial part of those needed decisions to address excess capacity is the elimination of market-distorting policies. These policies include certain financial and other government support measures. So-called zombie firms are one large example of the results to what this market-distorting support leads.

With a view on new investments in the pipeline, it is also of importance to avoid potential new sources for considerable extra excess capacity. To avoid the related negative financial and economic effects or underperformance, it is in the interest of all concerned to explore potential approaches for new investments staying in balance with the evolution of local or regional consumption patterns. This would also support market prices and sustainable financial perspectives for industry and shareholders.

l G20 Heads of State Address Overcapacity
The key body to guide and support authorities to address this overcapacity is the Global Forum on Steel Excess Capacity. Bringing together 33 economies, the Forum laid out the groundwork to gather information and report on the root causes and government policies that lead to global overcapacity.

▲ GFSEC representatives at G20 2018 discussing measures for the steel industry on the way forward (Source: G20 Argentina)

Established in late 2016, the Forum reports to the G20 Heads of State, and since its formation, the Forum has been building momentum so that the world’s major steel-producing countries can tackle excess steel capacity at its source. One clear progress that came out of the Forum was the December 2017 agreement on principles and recommendations for states to dismantle market-distorting subsidies. In September 2018 this was followed by the agreement to further reduce capacity wherever necessary, to avoid that overcapacity is increased in the future, as well as to work to eliminate subsidies causing overcapacity. Obviously, these commitments also need to be implemented by all economies concerned.

The Forum is currently in the last year of its three-year term, waiting for an extension. Hopefully, all member countries will be conscious of their historical responsibility in addressing this global steel challenge in a cooperative way. In the 21st century, steel value chains in the world economy have become so intertwined that the impact of any policy decisions reaches far beyond the national boundaries, just as the related responsibility of authorities.

l Multilateral Framework Needed to Address Global Trade Actions

Another growing concern and challenge for these principal actors is the increasing number of trade actions globally in the steel market, and the further decline of the steel trade last year in comparison to 2017. Certain unilateral measures also cause almost chain reactions of trade measures by other countries.

This also illustrates the importance of a multilateral rule-based framework and institution like the WTO. This will support a further evolution towards a sustainably growing international trade. From which also the whole steel sector will benefit in the long term. As this provides a basis for legal certainty for all actors involved in the steel industry, especially in unstable situations of frictions that we are confronted with, when already uncertainty brings also an economical cost.

l Circular Economy: An opportunity and a Way Forward
An additional factor in this moving and rather complex landscape is the rise of the circular economy. As a front runner, the steel sector had not waited to apply this frame, long before the term even existed. The difference is the spread and application in many more industries and products. Forecasters are continuously working on improved modeling, to estimate the impact of this concept on the steel sector also. It is becoming more and more evident, that also the steel sector, and the needed capacity and production levels, will undergo the effect of this accelerating evolution.

▲ (Source: World Steel Association)

* A sustainable future for steel: a new economic model like circular economy maximizes the value of raw materials by encouraging reuse and remanufacturing. In a circular economy, the already-high recycling rate for steel will increase and will result in more recycled steel to make new steel products.

At the same time, the frontrunner position of the steel sector and circular integration in other industries worldwide, do also create economic opportunities for steel companies contributing to potentially significant reductions of greenhouse gasses in societies the next decades. In order to fulfill the full potential of this role, the expectation is that particularly the steel sector is looking at increasing investments on low carbon energy use and production processes. Venturing into promising economic pathways by cross-sectoral cooperation, backed by intergovernmental cooperation and innovation practices will help to move towards a future proof steel industry.

POSCO hosts 50th global technology convention ‘World Steel Association Technology Committee (TECO)

TECO is a global convention in which global steel companies share their current status of technology development and discuss the current issues that the steel industry is facing. POSCO hosted the 50th TECO for a second time following its first hosting of TECO back in 2010, to celebrate its 50th anniversary this year.

At this convention, more than 60 experts from steel and related industries such as ArcelorMittal, NSSMC, Tata Steel and Voestalpine and also Secretary-General of the World Steel Association joined to shine the conventions. This convention held in Gyeongju, South Korea from April 23rd to April 26th.

Since sustainability has become main global issue, the main focus of the convention was carbon dioxide emissions and energy. The participants in the convention expressed their own perspectives related to the development of iron and steel manufacturing, rolling process technology and development of innovative products and digitalization that lead positive impacts on environment.

Wonderful opportunity to spread POSCO’s world premium technology

POSCO’s own technology that may shine in the convention is ‘high-manganese product and manufacturing technology that is invented first in the world. This unique technology was one of the driving forces of POSCO become world leading company.

Additionally, participants had a great opportunity to experience Pohang Steel Works, the FINEX plant, smart factory and rolling system and then visit POSTECH to see world’s 3rd 4G synchrotron accelerator.

* 4G synchrotron accelerator: ‘Ultra-high-performance gigantic microscope’ that observes the microscopic structures and reaction of materials using synchrotron radiation when accelerating electrons at the speed of light.

The World Steel Association, founded in 1967, is the most authoritative organization in the steel industry, which promotes the understanding and interests of the steel industry. Currently, as many as 170 steel companies, related associations and laboratories around the world are listed as members. The World Steel Association and the Technology Committee shares the technologies developed by individual steel companies in every year to propose joint research on steel technology and encouragement of cooperation.

‘Future Vision Declaration Ceremony’was held on April 1, the 50th anniversary of POSCO, POSCO CEO Ohjoon Kwon shared his philosophies of the centennial enterprises and the new mission and vision

On April 1st, the 50th anniversary of POSCO, named ‘Future Vision Ceremony’ was successfully held. The main topic of the anniversary was not only celebrating 50th years POSCO’s efforts both industrial and social fields but also suggestion of future directions of POSCO, ‘Missions and Visions’ 

‘Unlimit the limt: Steel and Beyond’

POSCO is dreaming of KRW 500 trillion in consolidated sales in 2068, the 100th anniversary of the company.

On the occasion of its 50th anniversary, POSCO held the ceremony to declare its future vision, and announced the mission and vision as a global centennial enterprise at the POSTECH gymnasium at the 50th anniversary of POSCO on April 1, and announced its mission and vision of being one of the true global centennial enterprises.

The new mission of the global centennial enterprise POSCO, which POSCO CEO Ohjoon Kwon detailed in the form of his TED Talk, is ‘Unlimit the Limit: Steel and Beyond.’ This mission, which was finalized after a few months of intensive debate among executives, means that POSCO will capitalize on its past 50-year history of challenges to become a power in the future not only in steel, but also in non-steel areas.

To this end, POSCO is seeking to change its current revenue streams, in which about 80% of the group’s profits come from steel and steel-related areas, in which profits will come evenly from the top three core business groups, i.e. steel, infrastructure and new growth engines, at a ratio of 4:4:2. POSCO aims to see its consolidated sales reach KRW 500 trillion and its operating profits reach KRW 70 trillion in 2068, its 100th anniversary.

In addition to its primary business, i.e. steel, POSCO will concentrate on such infrastructure areas as trading, construction, energy and ICT were included, and such new-growth areas as energy storage materials and light-weight materials.

The vision, which was declared along with the mission, is ‘POSCO the Great.’ ‘POSCO the Great’ was the slogan that CEO Kwon used when he was first inaugurated as CEO in 2014 to revive POSCO which faced a crisis at the time. Now the slogan has become more systematic: Great Business, Great Technology and Great Culture. It means pushing the business structure, technology and organizational culture to the highest level.

As POSCO has contributed to the country and society through steel and educational patriotism, at a time when the company is celebrating its 50th anniversary and starting its march forward toward a centennial enterprise, it decided to conduct business that will repay the country in addition to declaring its mission and vision.

POSCO supports Youth

In return for the country’s unsparing support and the citizens’ enthusiastic support which made POSCO what it is today, POSCO opted to construct the ‘Youth Creativity Center’ (tentative), which features various contents, including the Science and Experience Center in Seoul Forest, located in the center of the capital city of Korea, and donate it to the nation.

The ‘Youth Creativity Center’ will become a learning center where youths, who will lead the country into the future, can easily understand the principles of technology and science through experience, and translate their creative ideas into reality.

Also, the center will have various concert halls and exhibition halls so that anyone can easily enjoy culture and art in everyday life.

If the international design competition for world-renowned architects is held this year, it will reveal its splendor as being the best science and culture complex in Korea.

The POSCO Center in Seoul, which was erected more than 20 years ago, now features a new product exhibition hall that will familiarize citizens with steel, and show customers the future vision of steel, and added a 30-seat PR video center. The product exhibition hall displays various industries demanding steel in the future, and state-of-the-art steel products, and allows visitors to experience the various uses of steel used in our everyday lives using the cartoon and touch technique in a fun way. At the PR video center, visitors can watch POSCO PR videos, and view a steel mill in 3D imagery.

Close to people 

On its 50th anniversary, POSCO, which has contributed to the growth of the country with steel, will air a TV ad, which reflects its will to transcend beyond steel, ‘50-Year Challenge and 100-Years New Dream’ until June 10, and the POSCO Art Museum in the first lower level of the POSCO Center will host the ‘Homage to POSCO’ exhibition until May 8. The artworks embodying the growth and rebirth of POSCO will be on display. Also, the POSCO Museum in Pohang will host the ‘Half-Century Video Records of POSCO,’ which introduces various images and historical materials which recorded its 50-year history of growth, until June 30.

In addition, until the end of May, POSCO will prepare an opportunity for the CEO and employees to communicate and harmonize with one another in Seoul, Pohang and Gwangyang with the aim of strengthening the solidarity among employees marching toward a centennial enterprise.

POSCO always stands with country 

POSCO’s 50-year history is in true sync with the history of the growth of the Korean economy. POSCO has never stopped growing for half a century since its foundation, and continued to turn profits without ever running into the red and still contributes to the economic development of the country.

POSCO was established in 1968, and molten metal was first produced in 1973. Its sales amounted to KRW 41.6 billion in that year, and increased 686 times last year to KRW 28,553.8 billion. Korea’s per capita GDP was merely US$ 198 in 1968, but it increased about 140 times in 2016 to US$ 27,539.

As POSCO grew and its steel production increased, domestic industries such as automobiles and shipbuilding continuously grew as well. In 1973, when POSCO started to produce molten metal for the first time, POSCO’s steel production amounted to 449,000 tons, but in 2017, it rose to 37.2 million tons. Likewise, Korea’s shipbuilding tonnage increased from 12,000 tons in 1973 to 23.5 million tons, and automobile production rose from 25,000 cars to 4.11 million cars.

POSCO has also grown remarkably in terms of technology. The FINEX technology, which replaces the modern blast furnace with more than 100 years of history, is an environmentally-friendly and economical innovative technology. POSCO independently developed and commercialized this. Also, in 2013, the company completed the construction of Southeast Asia’s first integrated steel mill in Indonesia. Just 40 years after POSCO owned the first integrated steel mill with the help of Japanese steelmakers in 1970, it grew so big as to build an integrated steel mill in a foreign country on its own, and transformed itself from a technological follower to a technological leader.

Also, POSCO sold 9 million-odd tons of automotive steel last year, which accounts for about 25% of its total sales, the largest proportion among major global automotive steelmakers and sellers. One out of every 10 cars sold in the world is made of POSCO’s automotive steel.

Smarter POSCO 

Recently, the company built its own smart factory platform called PosFrame, leading the smartization of the global steel industry.

In recognition of its excellent business performance, competitiveness and sustainability management, POSCO has been selected by WSD as one of the ‘world’s most competitive steelmakers’ for the past 8 consecutive years since 2010, and in the global sustainability management evaluation, it has been selected as an excellent company in sustainability and as the best company in the steel industry for the past 13 consecutive years, dating back to 2005. It has remained in this honorable position for the longest time in Korea.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

BOD Chairman Joo-hyeon Kim has been an outside director of POSCO since 2015. He previously served as president of the Hyundai Research Institute and chairman of the Economic Subcommittee of the Presidential Committee for Unification Preparation.  He is currently the CEO of Financial News. He Seong-jin Kim, is an expert in industrial policies. He was the Deputy Director-General of Industry in the Prime Minister’s Office, a presidential secretary for policy management, a presidential secretary for industrial policies, the administrator of the Small and Medium Business Administration, the Minister of Maritime Affairs and Fisheries, and president of Hankyong National University.  

CEO & President In-hwa Jang served as the head of multiple organizations, including the New Business Management Office of POSCO, the Steel Solution Marketing Office. and the Technology Investment Headquarters. He was also appointed as head of the Steel Production Headquarters last year, and oversaw steel production sites.

Joong-seon Jeon, served as head of the Raw Materials Purchasing Office of POSCO, head of the Management Strategy Office, and CEO of POSCO C&C. He was promoted to vice-president last month after being appointed as head of Corporate Strategy & Finance Center The shareholders approved the financial statements, reorganized expert committees and revised part of the Articles of Incorporation, including the increase of the number of outside directors.

POSCO CEO Ohjoon Kwon remarked at the general shareholders’ meeting, “POSCO celebrates its 50th anniversary this year. To make a new leap forward in 2018, we will further consolidate our world-leading position in the steel industry, reshuffle our business strategy by with a focusing on high-yield core businesses, converge create convergence businesses with group affiliates, and continuously seeking new business opportunities for our future growth.”

In addition, POSCO is planning to operate the CEO candidates nurturing program more substantially. This program establishes plans for individuals who were selected through an objective verification process from general managers and higher-ranking officials at POSCO and its affiliates, and nurtures them in a customized way. 100 people have benefitted from this program each year since March 2016. Program participants work for companies that POSCO invested in and for its overseas subsidiaries, while participating in leading domestic and overseas universities’ business management courses to foster their entrepreneurial competency and global mindset.

Meanwhile, to repay the country and citizens for their continued support for POSCO since 1968, the business announced that they are planning to construct the Science and Technology Experience Center and the Cultural Complex as part of their activities to celebrate POSCO’s 50th anniversary.

Cover photo courtesy of News World.

Prime Minister Modi revamped India’s economy with his “Make in India” initiative. (Source: LinkedIn)

Most notably, Prime Minister Modi launched the “Make in India” initiative in September 2014, showing his resolve to revamp the manufacturing industry in India. Under the initiative, domestic as well as foreign companies are encouraged to manufacture their goods in India with the goal of increasing the makeup of the manufacturing industry to 25 percent of GDP by 2025.

At the heart of the initiative is the government’s efforts to ignite the steel industry. The National Steel Policy (NSP) 2017 declared that India will become self-sufficient on domestic steel supplies by increasing its steel production capacity from 122 Mt in 2015 to 300 Mt in 2030. However, the steel industry currently only makes up 1.04 percent of the country’s GDP.

Challenges Ahead for India’s Steel Industry

Despite India’s promising potential and robust government support, the steel industry has not met the government’s high expectations and growth has been modest. According to researchers in volume 4 of the Asian Steel Watch, there are deep structural flaws within India’s steel industry that need to be addressed before the country can reach its full potential.

One of the industry’s biggest challenges is its growing debt – In 2016, the steel industry surpassed INR 3 trillion in debt. Most of the country’s steel and infrastructure projects are financed by the government. What India needs is more private sector involvement, but private players are hesitant due to complex regulations, a lack of business models and no guarantee on returns on investment (ROI). The government has also been slow to secure FDI because, over the years, India’s steel industry has displayed poor planning and management of projects as well as a mismanagement of funds.

India’s mining industry will directly affect the success of the steel industry. (Source: Pinterest)

Another major challenge has to do with India’s natural resource management, as mining companies do not have fair access to the country’s abundant resources. The mining industry is subject to heavy tax burdens including the royalty, local area development tax, forest development tax and much more as it is a profitable business for the government. Plus, the costs of meeting international environmental standards are passed directly onto mining companies. Thus, the price of iron ore and other minerals do not reflect the abundant supplies available, and the higher prices ripple into the steel industry.

Moreover, the government regards the steel industry as the backbone of India’s economy, but in reality, the times are changing.

Technological advances in the manufacturing industry is making the steel production process more efficient and less labor intensive. (Source: South China Morning Post)

In the past, 70,000 workers were required to produce 1.5 Mt of steel. Today, it takes about 3,000-4,000 workers to make 5 Mt a year. The steel industry is just not what it used to be in terms of the positive effects it had on the economy as a whole. The industry requires intensive capital and the only way it will survive is with low labor costs and maximum manpower productivity.

India needs to take full advantage of the country’s abundant resources and capitalize on its competitiveness to reach its full potential. In order to do so, India can start by examining other steel industries that served as the main driver for national economic growth, such as Korea’s.

Takeaways from Korea

After the Korean war in 1953, Korea had to build its economy up from scratch. Like India, the government chose to stimulate its steel industry and spent its war reparations payment from Japan to build POSCO’s steel mill in 1969. Since then, the state-led steelmaker has been a primary engine for Korea’s miraculous economic growth.

The construction of POSCO’s headquarters began in May 1968.

So how did Korea manage such growth?

The government allocated much of its resources to infrastructure construction for efficient logistics and implemented policies to support the mutual growth of steel and steel-consuming industries. Moreover, the government practiced protectionist trade policies long enough to get Korea’s steel business on its feet, then supported a market-driven business model.

The government also kept a close watch on supply and demand forecasts and updated its supply policies timely and accordingly. Factors such as demographic changes, industrialization patterns, urbanization and labor costs should be examined holistically to prevent the gap between supply and demand from increasing too much. For example, in 2010, the Korean government implemented capacity expansion policies that resulted in oversupply and a prolonged recession. This was because policymakers failed to diagnose the symptoms of the mid to long-term steel demand forecasts that showed sluggish demand. Since then, Korean policymakers keep close watch on such measures to update the country’s supply policies.

Finally, the Korean steel industry invested heavily in knowledge accumulation and R&D to wean off of Japan’s technical support and become an exporter of steel technology.

POSCO is now a leader in steel production technology.

Compared to Korea, India has an advantage in almost every aspect. The country’s per capita steel consumption is still low and the booming population will drive demand in steel-related industries. With much room for growth, the Indian steel industry can expect to see accelerated growth when paired with the right policies and government support.

They also have every incentive to do so. From 2010 to 2016, the price of wind and solar energy dropped by 60 and 80 percent, respectively. With the global demand for energy projected to rise 30 percent by 2040, green energy producers and related manufacturers will see an increase in business activity, including the steel industry. Steel is used to produce every single type of renewable energy, and demand for high-quality steel is looking to increase.

Take a look at some of the first movers transitioning to renewable energy and the biggest drivers of renewable energy demand in the global market.  

SEE ALSO: Building a Green Energy Future with Steel

Google, the biggest corporate consumer of renewable energy

At the end of 2017, Google purchased 3 gigawatts of renewable energy, enough to power all of its 15 data centers and offices around the world for an entire year. Google started purchasing wind power from a farm in Iowa back in 2010. Today, Google purchases most of its renewable energy from wind and solar energy farms in South Dakota, Oklahoma and Iowa.

Inside Google’s colorful and green data centers. (Source: Business Insider)

What’s significant about Google’s renewable energy consumption is that even if it does not use up all of the energy for its own operations, the company sells it back into the market in regions where they operate. Then, they retire their Renewable Energy Certificates (RECs), meaning it is no longer re-usable or re-issuable. In doing so, it removes energy supplies from the market and forces producers to keep generating new renewable energy supplies, instead of trading existing RECs. Google is fully backing the renewable energy industry, creating more business for generators and materials suppliers such as steel.

SEE ALSO: India: A Rising Sun in the Global Renewable Energy Industry

With the rapid growth of internet-based services, data centers are also increasing, engulfing extensive amounts of energy. Data centers already account for 3 percent of the world’s entire electricity consumption, and 2 percent of total greenhouse gas emissions, equivalent to that of the airline industry. It’s a relief that companies like Google, with a growing reliance on data centers, are finding sustainable ways to fuel their business, and other companies are following suit.

Apple’s green data centers

Apple is another company that is making bold strides toward renewable energy. The company stated all of its data centers run on 100 percent renewable energy and its operations over 23 different countries run on 93 percent renewable energy.

Apple’s data centers run on 100 percent renewable energy. (Source: Digital Trends)

Apple joined RE100 in 2016, but the company is no newcomer to green energy. In 2015, Apple issued USD 1.5 billion in green bonds to finance eco-friendly business endeavors. Then in 2017, Apple issued another USD 1 billion in green bonds in response to U.S. President Donald Trump’s withdrawal from the Paris climate agreement.

In 2017, President Trump shocked the world by withdrawing the U.S. from the Paris climate agreement. (Source: Fortune)

Because Apple’s business also includes manufacturers who do not follow the same sustainable practices, Apple’s next challenge is to filter through their suppliers and select those that are committed to powering their operations with renewable energy. So far, 8 major suppliers have come on board.

Microsoft and Facebook are on their way

Microsoft’s global operations have been fully powered by renewable energy since 2014. This includes manufacturing, licensing and logistics. All of its data centers are 100 percent carbon neutral, but Microsoft is planning a slow but sure transition towards renewable energy. As of now, about 44 percent of the electricity that powers Microsoft data centers come from wind, solar and hydropower, and their first target is to reach 50 percent by the end of this year. They have also stated they will strive for 60 percent in the next 10 years.

Microsoft is building new data centers all over the world, including the UK (pictured), and plans to run them on green energy. (Source: WindowsAble)

Just like Microsoft, Facebook looks to power 50 percent of all its data centers with renewable energy by the end of this year after successfully reaching its 25 percent target back in 2015. Facebook has a large presence all over the globe, and already, their data centers inLuleå, Sweden, Altoona, Iowa, Fort Worth, Texas and their Menlo Park headquarters are running on 100 percent green energy. Moreover, Facebook plans to power their newest data centers to be built in Ireland, Denmark, New Mexico, Nebraska, Ohio and Virginia with renewable energy.

Facebook’s newest data center in Virginia will run on 100 percent renewable energy. (Source: Adweek)

The largest and most influential corporations in the world that operate the ever-growing, energy-extensive data centers are making the switch to green energy. Their changing business practices will further boost the renewable energy industry, create new jobs and open new business opportunities for the steel industry. As steel plays a vital role in supplying parts for renewable energy infrastructure, high-quality steel solutions will be in increasingly high demand.  

Cover photo courtesy of Rambus.

The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.