POSCO held its 2016 Investor Forum in New York on February 12. From left, Merrill Lynch Managing Director, Patrick Doyle; Interpreter; POSCO President Ohjoon Kwon; Vice President Jung Woo Choi;, and Senior Director Min Yong Noh.

Officials from 24 investment institutions in New York, including McKinsey & Company and TIAA-CREF, attended the forum and expressed their interest in POSCO’s management activities, including “Innovation POSCO 2.0.”

POSCO announced that its sales revenue and business profit margin dropped year on year due to the company’s poor performance following the slump in domestic and international market conditions last year. POSCO also added that its loss recorded 1.56 trillion KRW, leading to a 96 billion KRW year-on-year net loss during the term.

Despite the slump in the market, sales revenue and profit margin achieved a stable status, reaching sales volume of 35.34 million tons—the largest in POSCO’s history. Moreover, POSCO noted that its net profit during the term grew through the increase of sales of high value-added products, such as World Premium (WP) products, as well as the increase of solution marketing-related sales.

President Ohjoon Kwon greeting overseas investors on February 12 at Lotte New York Palace Hotel.

President Kwon continued with a Q&A session with investors after the presentation on management performance and management planning.

In response to China’s recent plans to reduce its steel productivity by 100 million tons, President Kwon stated, “The problem of China’s steel oversupply has lasted for a few years and the market imbalance has become worse after the export of products that are priced lower than the marginal unit cost. The Chinese government has consistently shown its determination to resolve the oversupply issue, but its efforts did not amount to essential reduction.”

He also added, “However, considering the central government’s recent announcement by Premier Li Keqiang regarding the reduction of obsolete equipment, and the fact that 80 percent of Chinese steel companies experienced loss since the second half of 2015, the feasibility seems to be higher than before.”

“As the steel price has shown small rebound at the beginning of the year, fast market recovery can be expected if the structural regulation is executed properly,” Kwon stated. “We have exceeded the goal of restructuring in sub-companies since Innovation POSCO 2.0 was announced last year and achieved a bigger amount on hand than that of 2009 through restructuring assets. We also raised performance in original technology sales through moving 1FINEX and CEM technology and exporting related technologies. We will continue to strengthen our competitiveness of steel this year by collaborating all capacities on acceleration and structure innovation, which includes business structure, cost structure, profit structure and consciousness structure.”

Regarding technology competitiveness maintenance through POSCO’s R&D investment management, Kwon noted, “POSCO has a larger R&D investment compared to other global competitors and is maximizing R&D investment efficiency through intimate cooperation and a trading relationship with the Technology Institute, along with production engineers. We will continue to focus on strengthening POSCO’s original technology competitiveness this year by including the sales force in the cooperation relationship for completing the solution marketing model.”

POSCO was the first Korean firm to be listed on the New York Stock Exchange (NYSE) in 1994 and President Kwon himself rang the closing bell at NYSE last February in celebration of the twentieth anniversary of the company’s listing.

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No Summer Can Stop Us at Pohang Steelworks and Gwangyang Steelworks

Regardless how hot it is out there, POSCO’s Pohang Steelworks and Gwangyang Steelworks continue pouring out hot molten metals. These are the photos of POSCO employees fighting against the hot summer with passion and spirit.

Han Woo-sik, of Material Quality Management Team, is removing scales at Pohang 4th Continuous Casting Area’s Correction Yard

 Employees from POSCO Family ‘Donghoo’ are focusing on scarfing on hot slabs

An employee at Pohang 3rd Wire Rod Factory gives a thumb-up while checking flaws on 200℃ hot coils

Kim Hyun-soo, Pohang Steelworks Main Maintenance Division, is operating a special welding in a mask and gloves

POSCO Family ‘Sejongro’ employees pose at Pohang 3rd Cokes Factory in heatproof gears and masks

Pouring molten metal into a cast at Gwangyang 2nd Continuous Casting Factory

An employee at Gwangyang 2nd Wire Rod Factory checks flaws on 500℃ how coils

To cool the unbearable heats from the weather and the facilities, POSCO is providing ice machines and cold water fountains at Pohang Steelworks and Gwangyang Steelworks. It is to protect POSCO employees’ health and safety from working at offices, control rooms and high temperature worksites.

How Our Employees Fight Face-to-Face With Summer Outside Steelworks

Pohang Steelworks’ in-factory refectory has been serving ‘Samgyetang,’ a tradition Korean chicken soup with ginseng, so our employees can ward off summer heat and stay healthy. On July 23rd, we also have shared red bean ice desserts with 189,000 employees of POSCO and outsourcing partners. During the feast, POSCO’s managing directors listened to the employees’ voices over any difficulties they are facing. This would be helpful for improving the working condition at the steelworks.

Kang Hae-won, PRTech, is smiling while having a bowl of hot soup at Pohang 1st Cold Rolling Factory

Employees at 4th Furnace Factory’s Iron Making Division are having watermelons

A Pohang Steelworks employee is wiping the face of his fellow employee from TCC Hanjin

On July 12th, Gwangyang Steelworks shared hot chicken soups, cold watermelons and red bean ice desserts with all factories to encourage the workers and to protect their health. The wives of Gwangyang Steelworks’ employees also joined to prepare the meals for their husbands working in this hot summer.

Employees at a shipping crane are given encouraging refreshments from a colleague at Gwangyang Steelworks’ Manufacturing Technology Department

Employees at Gwangyang Steelworks’ Chemical Division are wiping their faces near the hot-aired 5th Cokes Furnace

Employees at Technology Institute are having watermelons, prepared by their families

Gwangyang Steelworks’ employees at Iron Making Division are chilling themselves with ice-creams during the break

The wives of Gwangyang Steelworks’ 1st Steelmaking Factory employees prepare cold noodles for their husbands

The wives of Gwangyang Steelworks’ 2nd Cold Rolling Factory are serving cold watermelon salad to the employees

Employees are receiving medial consultations

During the hot season, the Health Promotion Teams in Pohang Steelworks and Gwangyang Steelworks provide travelling clinic service. From early July, the medical teams which consist of doctors, pharmacists, nurses and industrial hygiene managers, visit each workplace two to three times a week, and this will continue until the end of August.

It is truly impressive and we are in awe of the POSCO employees’ challenging spirits in this weather. We hope their morale was also boosted by the supports from their families and colleagues.