POSCO Achieves a Perfect Score of 10 in five Key Areas, Including Technological Innovation, Processing Costs, and Upstream and Non-Steel Businesses

POSCO has been recognized as the “World’s Most Competitive Steelmaker” for the 15th consecutive year.

World Steel Dynamics (WSD), a well-known global steel analysis institution, revealed the results of its World-Class Steelmaker Rankings for 2024 on December 22 (local time in New York).

Established in 1999, WSD has, since 2002, evaluated 35 steel companies worldwide based on 23 criteria, including technological innovation, production scale, cost reduction, processing costs, financial soundness, customer access, and raw material procurement.

POSCO achieved the top overall ranking with a score of 8.62 out of 10, despite facing difficult sales conditions both domestically and internationally, including stagnant domestic demand, a surge in low-cost imported steel, and escalating global trade tensions. The company earned top scores in five categories: technological innovation, processing costs, skilled labor, mergers and joint ventures, and upstream and non-steel industries.

These rankings are an essential reference point for assessing the management performance and future potential of major global steel companies.

Earlier this year in April, POSCO was named a Sustainability Champion by the World Steel Association for the third consecutive year. Additionally, at the Steelie Awards in October, the company won top honors in three categories: technological innovation, communications, and education & training.

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

On December 7, employees celebrated reaching 20 million tons and took a commemorative photo.

FINEX is an innovative, paradigm-shifting technology where molten iron is produced directly in a blast furnace. The process eliminates preliminary processing and uses cheaper powder-type iron ore and bituminous coal as raw materials. Subsequently, investment and production costs can be reduced by 85 percent compared to those of general blast furnaces of the same size. In addition, the technology reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to general blast furnaces.

The beginnings of the technology date back to the 1990s when the Korean government chose POSCO’s smelting reduction steelmaking for a national project and contributed KRW 22.2 billion for research and development.

As a result, POSCO started operating the FINEX 2 plant with an annual production capacity of 1.5 million tons in 2007, and the FINEX 3 plant with an annual production capacity of 2 million tons in 2014, which now produces 10,000 tons of molten iron every day. Surprisingly, the Korean steel industry, which was heavily reliant on foreign technologies in 1968, now leads the world’s steel industry in terms of technology.

However, the path to success was filled with challenges.

In 1998, objections were raised against additional investment for the FINEX technology because there were no clear, tangible results even after KRW 60 billion was invested. Even so, POSCO management made a decision to construct a demo-plant with an additional investment of KRW 100 billion for technology development in order to secure long-term competitiveness rather than seeking immediate profit.   

In addition, POSCO convinced steelmaker Voestalpine, who was in possession of the world’s leading technology for molten iron production, to participate in the project as a partner. POSCO was able to do this by offering to cover the full cost of dispatched researchers and engineers should the technology become successful.

In 2003, there was a slight setback when the newly-opened core FINEX processing facility failed to operate successfully. However, after dozens of tests with 80 in-house professionals over 3 months, the facility was up and running.

Molten iron is produced directly in a furnace in the FINEX plant.

Sang-ho Lee, Director in Charge of Commercialization at POIST, said, “With less than 50 years of steelmaking experience, POSCO has managed to achieve a next-generation, innovative steel-producing technology. It feels great because even though POSCO started as a fast follower of foreign technologies, we are now a leading company in the world’s steel industry with our FINEX technology.”

POSCO currently has over 200 patents for its FINEX technology and HCI technology in Korea and 50 patents in more than 20 countries worldwide. Many overseas companies have expressed an interest in FINEX, and POSCO is in talks with world-renowned steelmakers in China to export its FINEX technology.

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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.

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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Volkswagen brought back its iconic Microbus in the form of a new electric, self-driving ID Buzz concept car. (Engadget)

The headlines from the Consumer Electronic Show (CES) were all about self-driving, electric, and connected cars. As these topics continued to be highlighted at NAIAS (see the new Volkswagen ID Buzz pictured above), there was also a focus on the importance of structural design.

Innovations in high-strength steel have allowed car makers to reduce the weight of vehicles without compromising safety. From large sedans to electric vehicles, advances in steel were spotted all throughout this year’s NAIAS with BMW’s new 5 Series and Ford’s new 2018 F-150 both showing off their lightweight aluminum and high-strength steel compounds that helped shed more than 100 kg from the BMW model.

The push to make vehicles lighter raises safety concerns. Lighter cars require lighter steel, and to make lighter steel there are typically other compromises that have to be made. POSCO, however, with its advanced high-strength automotive steel, has found the solution for automakers to make cars that are both safe and lightweight.

The new BMW 5 Series (left) and Ford F150 (right) made their debut at the North American International Auto Show. Both models used advanced high-strength steel to reduce weight and maintain safety. (NAIAS Image Archive)

POSCO’s Lightweight Auto Solutions Increase Safety

In 2016, POSCO became the first steelmaker to participate at NAIAS, displaying its advanced high-strength steel for automobiles, including its the PosM Steel and hot press forming steel (HPF). PosM Steel is five times stronger than other types of steel making it great for impact absorption and increased safety.

Providing a rapid solution upgrade for strengthened crash requirements, the safety of POSCO’s advanced materials has been certified by the Insurance Institute for Highway Safety (IIHS). In addition, the strength and crashworthiness of POSCO’s advanced steel solution received a score of 5 stars from USNCAP and ‘good’ safety ratings on the IIHS Moderate Overlap Front and Small Overlap Front tests. By reducing possible safety concerns with high strength body solutions, POSCO is able to contribute to the advancement of global auto manufacturers.

With steel being more important than ever in the auto industry, POSCO’s commitment to improving the strength and safety in its automotive steel has helped it maintain its position as a global industry leader. As Gregory Warden of GM said, “there is a whole new generation of steel coming” – and POSCO is helping to lead the way by creating new solutions that guarantee safety and fit the unique needs of its partners.

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While the Smart Energy Marketplace featured innovative products that provide electricity in more sustainable ways, the Sleep Tech Marketplace showcased exciting sleep-related technologies aimed at improving health through better sleep. Check out some of the recent advancements below and let us know what you think!

The Smart Energy Marketplace: Cleaner & Sustainable Electricity

As they do every year, tech giants and startups used CES to debut their new products and ideas. Just when it seemed that the market was saturated with enough cool floating Bluetooth speakers and mobile charging cases, CES 2017 took it to another level with new solar-powered gadgets.

• Designed by Lemon Technology, The California Roll is the first solar-powered, waterproof speaker. It lasts up to 20 hours with only 7 hours of sunlight, includes voice recognition capabilities, and uses NFC to offer a faster and more reliable connection with less energy consumption. Because it is waterproof, the California Roll is good to go, rain-or-shine.
• When your smartphone battery dies, iPowerUp is a case that can recharge the phone from solar cells located on the back. Its solar panels store energy and then charge your phone when an outlet is unavailable.

POSCO’s work in developing smart energy technology can be seen in the World Premium Product, PosMAC (POSCO Magnesium Aluminum alloy Coating). Solar cells need to be installed with materials that are both lightweight and sturdy enough to withstand the elements. PosMAC is uniquely suited for solar energy development because it is durable, light weight, and non-corrosive.

The Sleep Tech Marketplace: Better Sleep & Improved Health

Trouble sleeping? CES showcased a possible solution at its Sleep Tech Marketplace. In its first year, the marketplace showcased several products that help regulate your body’s circadian rhythm and provide a more peaceful sleep.

• If noises are keeping you up at night, Nightingale is a device that plugs into an outlet and masks common indoor and outdoor noises that can disrupt sleep patterns by adding ambient sounds, called “sound blankets.” Two speakers placed in two different units in a room utilize the walls to reflect sound and blend it into the background.
• PEGASI Smart Sleep Glasses solves a series of sleep related issues by generating lights of specific wavelengths to stimulate the suprachiasmatic nucleus on the hypothalamus, which controls the circadian rhythms that help regulate sleeping patterns.

POSCO has also been working to develop technologies that can help regulate sound for more peaceful sleep. PosCoZy was designed to provide a more peaceful and quieter living experience through a flooring system that can greatly reduce impact noise between floors in apartment buildings and offices. PosCoZy’s manganese Z-clips’ resistance to vibrations are 4x higher than regular steel. What’s more, PosCoZy helps reduce the sound of typical walking from 50 decibels to just 40dB, while impact sounds are lowered from 58dB to 38dB. That means you can sleep through the night without hearing the party going on upstairs.

Bigger and bolder than ever before, CES 2017 took great strides with new marketplaces, including the smart energy and sleep tech industries. POSCO continues to develop pioneering solutions alongside these breakthrough innovations as well to find advanced solutions for the 21^st century.

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Take a look back at the 8 biggest stories from The Steel Wire in 2016.

1. World’s Most Competitive Steelmaker for the 7th Consecutive Year

POSCO was once again named the world’s most competitive steelmaker for the 7th consecutive year by World Steel Dynamics (WSD). In addition, POSCO became the only steel company in the world to be simultaneously listed on both the Global 100 Most Sustainable Corporations in the World and the Dow Jones Sustainability Index (DJSI).

2. POSCO Earns More than KRW 1 Trillion in Profits and Improved Credit Ratings

For the first time in four years, POSCO’s consolidated quarterly operating profits exceeded KRW 1 trillion. POSCO also saw significant improvements in the overseas subsidiaries as operating profits for Mexico’s CGL, Vietnam’s cold-rolling factory, and India’s POSCO Maharashtra shot up considerably last year. In addition, CEO Ohjoon Kwon’s corporate restructuring initiatives helped pave the way for improved credit ratings.

3. POSCO Expands with Thailand CGL and other Overseas Endeavors

Thailand CGL (Continuous Galvanizing Line), Southeast Asia’s first automotive steel sheet plant was completed in August 2016. In addition, POSCO expanded its overseas presence by signing agreements with Iranian steelmaker PKP to construct a FINEX-CEM integrated steel mill capable of producing 1.6 million tons a year.

4. Taejoon Park’s Induction into the Korean Business Hall of Fame

POSCO’s honorary chairman, Taejoon Park, was inducted into the Korean Business Hall of Fame. He was recognized for transforming Yeongil Bay in Pohang from what was considered a wasteland into a steel mill that produces more than 21 million tons per year.

5. POSCO Strengthens its Foundations with its Unique Innovation Model

POSCO’s unique innovation program, QSS+, part of POSCO’s POSTIM, celebrated its 10^th anniversary. Compared to previous years, the number of ideas suggested by employees tripled, and six smart factory pilot activities were also promoted. A ‘special compensation system’ was also implemented to award outstanding IP projects.

6. A Culture of Shared Growth is Set into Motion through “Human Solutions”

In 2016, POSCO’s advanced Solution Marketing and World Premium Products reached new heights. At the 2016 POSCO Global EVI Forum, customers heard from experts and industry leaders about POSCO’s unique approach to building proactive steel solutions for its customers. And in 2016, sales of World Premium Products reached a record high and accounted for 48.1% of POSCO’s total sales.

7. POSCO Completes its 4^th-generation Synchrotron Radiation Facility

POSCO completed its 4th-generation synchrotron radiation facility in September, the third of its kind in the world after America and Japan. With the accelerator, researchers can capture movements as brief as a femtosecond (1/1,000,000,000,000,000 of a second). POSCO has high hopes for the accelerator to play a role in future pharmaceutical research & development, biotechnology, clean energy, IT, new material technology, and semiconductors.

8. A Fresh Start as POSCO Daewoo

Daewoo International, incorporated by POSCO Group in 2010, announced its new name, POSCO DAEWOO, as a step towards establishing itself as a leading global trade company. Soon after, POSCO Daewoo signed agreements with a gas-fired powerplant in Myanmar, an Indonesia state-owned shipyard, the Ministry of the Interior of Peru, and the Brazilian navy.

This is where POSCO’s Smart Factory comes in. As a leading steelmaker, POSCO prides itself as being one of the most innovative manufacturing companies in the world, and by incorporating cutting-edge technology in its day-to-day operations, it’s easy to see how this is possible.

How Does It All Work?

The Smart Factory is all-encompassing: not only does this system cover the actual machinery of POSCO’s steel manufacturing through the IoT and artificial intelligence, but also highly-tuned wearables that ensure workplace safety.

Smart technology is not something new to POSCO, as it has embraced the IoT to create safer workplaces in the past.

The Smart Factory takes POSCO’s already-firm hold over smart manufacturing technology, and applies it to a broader purpose. Enhancing facilities by making them smarter not only helps workers, but improves the product overall.

Now, how exactly does this Smart Factory work, and what does it really do?

Starting with the Basics: Operation Management

Steel manufacturing facilities are large and complex, and in order to create the best product, the major units need to be properly managed.

One example is the monitoring of a rolling mill. POSCO’s Smart Factory houses rolling mills with IoT sensors attached, which collect data for analysis. These pieces of equipment are crucial to the steelmaking process – they take semi-finished slabs and flatten and elongate them.

The Smart Factory analyzes the data, and automatically sends out directions to control settings for an optimized operating environment. Whenever the sensors detect abnormal signals, operators can zoom in on inspecting its whereabouts.

If there is a case where external support is needed, the Smart Factory takes into account the skills of the workers on site, and evaluates what is needed. 3D blueprints examine facilities for enhanced efficiency, using virtual simulation to study the facility from the inside-out.

Guaranteeing Quality Control

One of the reasons why POSCO is considered a premium steel producer is because of the quality of its products. Hence, it is crucial that its facilities are able to perform to the best standards possible.

With the Smart Factory, POSCO is able to identify any defects during the production process prior to the final stages of the operation.

The system carefully examines each product from start to finish, monitoring raw materials from initialization to checking the state of a nearly-finished product entering a blast furnace.

In the chance that a defect does manifest, the Smart Factory scans the products to diagnose the problem. As a program meant to learn, the operation determines the exact cause of the defect, taking into account how to prevent it from occurring again in the future.

Enhanced Support from Artificial Intelligence (AI)

The most interesting ingredient in POSCO’s Smart Factory is artificial intelligence (AI) – which is utilized to create an optimized environment without human interference.

AI allows the facility to be able to conduct inspections throughout the facility, independently assessing issues and automatically assigning solutions given the available information. It is one of the elements that contribute to the unique nature of the Smart Factory.

Predicting through Simulation

The Virtual Factory is a 3D virtual facility that is a replication of the actual factory environment, simulating the production process and predicting the quality of new products.

With this technology, POSCO established a system that would create new, high-quality products in a shorter period of time.

The Virtual Factory also serves as a source for new employees to learn how to operate facilities, minimizing the chance for errors.

Prioritizing Employee Safety

Last, but definitely not least, POSCO’s Smart Factory model incorporates managing employee safety in smarter ways.

Sensors are installed in the workplace to pick up on any harmful stray gases, noises and temperatures, and notify operators of threats. They also look out for people working on site, monitoring and alerting employees in situations where they might be close to hazardous objects.

Wearables have been used for safety purposes in the past at POSCO, and with the addition of Smart Bands, workers working in harmful environments will be able to better prevent injuries. Data from the band is sent to a control center for immediate action in case of trouble.

Smart Factory, Smart Company

POSCO has already involved the IoT to develop improved safety measures, but now with the Smart Factory, the entire production process has advanced for the sake of creating better products in the future.

The Smart Factory transforms the conventional idea of a steel mill into an intuitive operating system, promising faster production, higher-quality goods and safer work environments.

Matching its position as a leading global steelmaker, POSCO’s Smart Factory gives evidence of the company’s optimized facilities for creating the most reliable steel products available worldwide.

POSCO Looks to Internet of Things (IoT) for a Safer Workplace

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