Recognized for efforts to transition to a low-carbon system, including the introduction of electric arc furnaces and the operation of a sustainability management council

POSCO was selected as the Sustainability Champion for the third consecutive year at the semi-annual member meeting of the World Steel Association, which was held in London, UK, on April 9 (local time).

▲Logo of the World Steel Association Sustainability Champion.

The World Steel Association has been awarding the title of Sustainability Champion since 2018 to member companies leading the steel industry in carbon neutrality and ESG initiatives. This year, 11 companies achieved this distinction, with POSCO earning the honor three times in a row since its first award in 2022.

To be named a Sustainability Champion, companies must fulfill four critical criteria: signatory to the Sustainable Development Charter, finalist in the Steelie Awards or the Safety & Health Recognition, publication of a sustainability report, and submission of sustainability data including Life Cycle Inventory (LCI) emissions data for materials and processes. Companies that meet these requirements are recognized as exemplary leaders in global ESG management.

In addition to meeting all four conditions, POSCO was recognized for its low-carbon transition efforts, including the introduction of electric arc furnaces and investments in Hydrogen Reduction Ironmaking Technology (HyREX), as well as new initiatives such as the establishment of a group safety council and a supply chain management council. These achievements have solidified POSCO’s status as a Sustainability Champion for the third consecutive year.

Furthermore, POSCO has been ranked as the most competitive steelmaker in the world by World Steel Dynamics for 14 consecutive years and continues to spearhead the global steel industry’s transition to carbon neutrality with innovations like its proprietary HyREX technology and the application of low-carbon bridge technologies.

In major cities around the world, industrial activity is creating visible damages. (Source: International Business Times)

In order to meet this mark, industries need to find sustainable sources of fuel in the near future, or be met with costly penalties. Up to now, the price of non-renewable fuel was too attractive for clean energy to be competitive. However, tighter regulations, major leaps in technology and state-level commitment have birthed a new era of renewable energy.

Energy you can bank on

According to Bloomberg analysts, USD 10.2 trillion will be spent on new power generation by 2040, 72 percent of which will go towards wind and solar photovoltaic plants. By then, the cost of solar electricity will drop 66 percent, meaning by 2021, solar power will be cheaper than energy from coal in China, India, Mexico and the UK. The cost of onshore wind power will decrease by 47 percent by 2040, and offshore wind power by 71 percent thanks to more advanced and cost-effective wind turbines.  

Renewable energy is getting more and more competitive, and companies who don’t make the switch to clean fuel will be left out of the race.

SEE ALSO: How POSCO Sees a Future of Renewable Energy

However, electricity doesn’t fall from trees.

It falls from steel! Tons of steel (literally) are used to extract and convert energy from renewable energy sources.

Wind Energy

Most wind turbines are made of steel, and for an average wind turbine, 140 tons of steel are used. That accounts for 80 percent of all the materials that go into the tower, the nacelle, rotor blades and its supporting facilities. The majority of steel is used to make the tower which serves as the foundation on which the blades turn to generate energy. There are several types of turbine towers, such as steel-concrete hybrid towers, steel truss towers and steel lattice towers, but about 90 percent of all wind turbine towers are made of tubular steel. Also, steel’s non-corrosive properties maximize the lifetime of wind turbines and minimize maintenance costs.

Solar Energy

Solar electricity is one of the most promising types of renewable energy. By as soon as 2030, it can make up 13 percent of the world’s energy, and by 2050, the sun will be the largest source of electricity on earth. And steel will be soaking it all up – the sunlight that is. Steel makes up not only the frame of the solar panels, but the heat exchangers and other related infrastructure. Stainless steel is a great choice for solar panel frames because it is dense, high in strength and has the greatest corrosion-resistance than other light metals.  

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

Geothermal Energy

Mother earth just keeps on giving. There are about 1400 TWh of geothermal energy in the earth’s core that can be harvested by 2050. Geothermal energy gives off extreme heat, so it is vital for the heat exchangers, condensers, pipes, filters, pumps and valves to be corrosion resistant. Otherwise, maintenance costs would be unsustainable and corrosion can contaminate the water as well. That’s why most of the infrastructure related to geothermal energy is made of iron castings, stainless steel and steel alloys.

Tidal Energy

There’s plenty of energy in the sea as well. In the world’s oceans, there are about 1 million megawatts of usable tidal energy. Steel makes up most parts of the underwater turbines including the nacelles, support structures and underlying piles for a sturdy and sustainable power source. As with other renewable energy, increasing the lifetime and decreasing maintenance costs will determine the competitiveness of tidal energy. Thus, stainless steel is the go-to material for corrosion resistance. The infrastructure related to tidal energy extraction is massive in scale and will call for thousands and thousands of pounds of steel to construct.  

Korea is the largest source of tidal energy in the world, with 552.7 GHw of electricity harvested from Siwha Lake every year. It’s also where steelmaker POSCO is located to provide the necessary types and grades of steel for renewable energy production.

POSCO E&C has its own solar, wind, tidal and refuse-derived fuel (RDF) plants, which makes sure even industrial wastes get turned into energy. The company was also the first company in Korea to build a solar power plant in 8 different regions capable of generating 31.2MW of solar electricity.

In order to stay competitive in the market, industries are already using or transitioning towards renewable energy sources to fuel their business activities. As governments around the globe also commit to a greener future, the demand for steel used in renewable energy infrastructure will see a significant boost.

Cover photo courtesy of the National Geographic.

Being in a global leadership position is not new to CEO Kwon. He served as the chairman of worldsteel’s Technical Subcommittee since 2012, when he was president of POSCO, and since 2014, he served as a member of the executive committee, the highest decision-making body of the organization, when he was inaugurated as the CEO of POSCO.

The new leadership will be looked upon to invigorate technical exchanges among steelmakers around the world, and boost the advancement of technology in the steel industry. In particular, while countries around the world are strengthening protectionism due to global oversupply, worldsteel’s leadership will be counted on to coordinate and arbitrate the interests of steelmakers through effective communication and networking.

The news of CEO Kwon’s new leadership role comes a day after POSCO received worldsteel’s Steelie Award for “Innovation of the Year.” The Innovation of the Year award is given to one member of worldsteel who made the most innovative accomplishments in technology or sustainability. POSCO was recognized for its use of artificial intelligence (AI) in coating weight control, the cold rolling process, automated operation and the furnace heat control process to improve quality and reduce costs at the same time.

This year’s award marks the last of 4 awards POSCO has received from worldsteel including the award for sustainability in 2010, and the awards for Innovation in 2012 and 2015.

Cover photo courtesy of World Steel Association.

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It is also the most common material found in medical supplies that contribute to people’s health and safety on a daily basis.  

Surgical Steel

“Surgical steel” is a term used to describe stainless steels for medical applications, and are generally made up of 316, 440 and 420 stainless steels. Surgical stainless steels are corrosion resistant, have a shiny, aesthetically pleasing exterior and are extremely hygienic. Plus, they have a long life cycle and require minimal maintenance.

Surgical steel is also used for screws and joints that hold bones together. (Source: National Geographic)

Due to these properties, surgical steel is the material found in medical equipment such as syringes, scalpels and gauges. Moreover, screws used to hold broken bones together and other parts for application inside the body are made of surgical stainless steel.

For the same reasons, surgical steel is also used to make jewelry.

Know anyone who is allergic to certain types of jewelry? Often times people think they are allergic to gold or silver, but chances are, they are allergic to other alloying elements, the most common one being nickel. In the United States, up to 17 percent of women and 3 percent of men are allergic to nickel, and the number is rising. Surgical steel with zero nickel content is a safe and cost-friendly alternative, and demand for the hypoallergenic material is growing.

Surgical steel is commonly applied to piercing jewelry. (Source: Elixa)

Surgical steel was a part of the 45.8 million metric tons of stainless steel produced globally in 2016, almost double the 24.5 million metric tons produced in 2005. The growing demand and application of stainless steel are playing a positive role in the economy, but it has also been the cause of environmental pollution.

POSCO’s Surgical Steel

One of POSCO’s surgical stainless steels is the PossRB1. It is comparable to the 420J2 stainless steel that is often applied to kitchen blades, however, it has a much higher level of hardness, and thus can be applied to surgical scalpels and razor blades.

Surgical scalpels come in direct contact with the body and need to be especially clean and non-corrosive. (Source: NY Times)

Another example is POSCO’s 304i stainless steel used to make syringe needles. It is an upgraded version of 304 stainless steel with a 9 percent nickel content, traditionally applied to syringe needles. The production process of syringe needles is demanding and require multiple steps to process into the desired thinness and diameter. To add, the materials need to be especially clean, or else the needle can fracture or not reach the desired thinness. POSCO’s 304i stainless steel is manufactured using POSCO’s strip casting technology and can be processed into the thinnest diameter requirements for 32 gauge needles (dental needles).

Syringe needles require a demanding production process. (Source: Tangent Industries)

POSCO’s poStrip Technology for Stainless Steel Production

In order to reduce the harmful environmental effects of steelmaking on the environment, POSCO partnered with the Research Institute of Industrial Science & Technology (RIST) in 1989, to come up with an innovative technology for stainless steel production called poStrip, or POSCO’s strip casting technology.   

The poStrip technology is an innovative way to make steel production more sustainable. (Source: POSCO E&C)

For more than 13 years, POSCO and RIST experimented with a twin-roll strip casting system where thin strips of steel can be produced in a single, continuous process. Hot molten steel passes through two cylindrical rollers that rotate and cool the hot steel sheets immediately, thus eliminating the need for hot rolling. In conventional casting processes, molten iron is poured into molding frames to produce steel slabs that are then rolled into sheets.

The new technology vastly reduced the cost of production, delivery time as well as the amount of harmful emissions created in the steelmaking process. In the end, POSCO’s poStrip technology was perfected and applied to various types and grades of POSCO’s stainless steels.

Not only is the innovative technology cost-effective and sustainable, it produces better quality steels.

In 2015, POSCO received the Steelie Award for Innovation of the year from the World Steel Association. POSCO was recognized for its high-quality stainless steel products that were produced with the innovative strip-casting production technology. POSCO will continue to research and improve the production and overall quality of stainless steels so that its partners can manufacture world-premium supplies, machines and architecture.   

Contrary to popular belief, mass reduction does not automatically equal fuel savings, especially when it comes to urban driving. There are other factors that determine the fuel efficiency of a vehicle such as driving cycle, vehicle size and its powertrain. Until recently, there was a  lack of variety in engine types and powertrains, so even though automakers reduced the weight of car frames, they could not apply a complementary engine or powertrain to the lighter parts.

So, have automakers been lightweighting for nothing?

Of course not, in the past decade alone, engines and powertrains have also become extremely efficient through advancements in start-stop-systems and downsizing, and newer options including hybrids, electric batteries and range extenders that now allow automakers to capitalize on their lightweight materials.

Although there are several lightweight materials, below are 5 reasons why AHSS continues to be the lightweight material of choice for automakers:

1. Decision Makers Care About the Environment

Well, not everyone, but many countries around the world have started the process to phase out gasoline and diesel-fueled cars, including India and China, the two largest automotive markets in the world. Governments are taking serious action against climate change and it will reflect in their policies. Automakers are choosing to lightweight their vehicles for lower emission rates with AHSS, because not only is AHSS lightweight, there are no trade-offs with other vital features such as safety and cost-effectiveness.

2. Everyone’s Going Electric

Globally, automakers are investing in electric vehicles (EVs) in line with national and international environmental policies. However, EVs still have a ways to go before they become the norm. EVs will face the same safety requirements as regular cars, but with the added responsibility of protecting the battery and its flammable components during a crash.

In 2016 there were several car accidents involving the Tesla Model S, where leaked battery fluids caused fires. Automakers need to find a solution to make EVs as safe, and eventually, safer than traditional cars. As an innovative automotive material, AHSS was built for safety.

3. Safety is Always First

Safety is and should always be the number one priority for automakers, material providers and policymakers alike. Even with all the hype about autonomous driving and sensors, there is very little chance that policymakers will reverse the stringent safety regulations in place today. People want to feel safe, no matter what type of car they are getting into.  

2016 Smart Fortwo and the Mercedes S Class take part in a crash test (Source: Green Car Reports)

One possible material solution is Complex Phase (CP) steel, a type of POSCO GIGA STEEL for the vehicle’s side panels, bumper rails and door impact bars- the parts that determine the safety ratings of the vehicle. It has superior strength and shock-absorbing qualities, without the added weight of traditional high-strength materials, and that’s why carmakers such as GM Korea, Ssangyong Motors and Renault Samsung Motors all use POSCO GIGA STEEL.

4. Cost is Always Second

This goes for automakers as well as drivers on the consuming end. Drivers want lower costs without compromising safety and performance ratings, and desire fuel efficiency- a major reason why automakers are lightweighting.

Some automakers choose alternative materials such as aluminum and carbon fiber to meet lightweight requirements to find that not only are the materials more costly over steel, factories need an equipment overhaul to work with them. Moreover, there are additional costs related to training employees to work with new materials, whereas all auto manufacturers are familiar with welding and forming steel.  

Take a look at this infographic and see how AHSS stacks up against other lightweight materials in terms of cost and performance.  

5. It’s Not Over Till It’s Over

No two lightweight materials are the same when observed under the life-cycle approach, a comprehensive life cycle assessment of a material’s automotive carbon emissions from production to disposal. Often times, the process of manufacturing lightweight materials and improved powertrains result in more carbon emissions than they are saving.

The life cycle assessment can be used to determine the carbon output of a vehicle. (Source: World Auto Steel)

At the end of the day, steel has the lowest production-related emissions and can be recycled at the end of its lifecycle. Steel remains the most recycled material because it can be reapplied in different forms almost infinitely.

Automakers are increasingly incorporating lightweight materials to their new models. Although competition for the greatest market share of lightweight materials is fierce, AHSS is by far the leading material when it comes to lightweight solutions. According to McKinsey & Company’s Lightweight, Heavy Impact report, the percentage of high-strength materials used for cars will increase to 38 percent by 2030, compared to 15 percent in 2010. Steel continues to evolve according to the changing demands of the auto market, and for now, there is no other multi-solution material that can compete.

Cover photo courtesy of Hyundai.

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Each year the annual event highlights one of the five main causes of accidents in the steel industry to create a safer working environment. This year, special attention will be given to falling objects and ways to prevent associated risks as below:  

• Cranes: Never allow people to be below a suspended load at any time and all personnel should be one meter away from the load for every meter the load is above the floor.
• Hoisting and Rigging: All lifting equipment must be correctly selected to suit the size and nature of the load.
• Integrity of Overhead Structures: Inspect and maintain overhead structures regularly for impact, corrosion, and fatigue.
• Maintenance and Working at Height: Access to areas below overhead work must be always be restricted.
• Storage and Loading: Material and equipment must be stored properly to prevent it from falling.

Working hand in hand with the World Steel Association and in line with the international safety standards, POSCO continues its effort to create an “injury-free, illness-free & healthy workplace with zero incidents,” such as POSCO’s Self-directed Safety Spread (SSS) program.

Take a look at the video and infographic below. They were both created by the World Steel Association to illustrate the main causes of serious incidents across the entire steel industry and the ways to prevent them.

You can also download PDFs of all of the safety and health infographics here.

Just about everything – from the roof over your head to the device you’re reading this on – contains steel. It is one of the most commonly used materials in the world and has been for quite some time.

World crude steel production added up to about 1.662 billion tons in 2014, based on the 2014 World Crude Steel Production Performances reported by the World Steel Association (worldsteel). Yet despite these numbers, the outlook for the steel industry suggests slow growth for global steel demand, which is mostly a result of the deceleration in China and structural adjustments in most world economies.

Nevertheless, The World Steel Association’s Short Range Outlook (SRO) for 2015 and 2016 notes that even though the growth is expected to be slow, demand is still growing. They forecast that the apparent steel growth will increase by 0.5% in 2015 and 1.4% in 2016. Additionally, in developing and emerging nations, there is an increased optimism for growth, as the steel markets are beginning to exhibit the characteristics of mature markets.

For more information on The World Steel Association’s expected outcomes for 2015 and 2016, click here.

So, which countries claim the spots of the world’s top steel producers for now? Read on to find out and to learn some interesting steel-related facts about each.

5. South Korea

Crude Steel Production: 71 million tons

Interesting Fact:

Rising 270 meters above sea level, The Yi Sun-shin Bridge was opened in 2012 and links the cities of Gwangyang and Yeosu. It is the first suspension bridge to be made solely with Korean state-of-the-art technology and equipment, including 26,000 tons of steel rods and 24,000 tons of steel products. Extending 2,260 meters, it is the longest in Korea and the fourth longest in the world, surpassing even the Golden Gate Bridge. (Source: http://bit.ly/1crFdzx)

4. India

Crude Steel Production: 83.2 million tons

Interesting Fact:

The Lotus Temple, a Bahá’í House of Worship, is one of Delhi’s most iconic architectural feats and was designed in the form of a lotus flower to symbolize the religion’s cornerstones of purity and simplicity. The lotus has three sets of leaves or petals which are made out of thin concrete shells. At the top, a glass and steel roof provides protection from the elements and facilitates the entry of natural light. The temple also utilizes a number of steel reinforcements and structural steel staging. (Source: http://bit.ly/1zWQCTh)

3. United States

Crude Steel Production: 88.3 million tons

Interesting Fact:

In 1943, more than 1 billion pennies were made with steel because the United States was, at the time, engaged in World War II and copper was being rationed to make artillery. Steel pennies weigh 2.70 grams and are fairly lighter than traditional copper Lincoln pennies that weigh 3.11 grams. Today, these pennies are quite popular among coin collectors and are worth about 25-75 cents each. (Source: http://bit.ly/1cooLjx)

2. Japan

Crude Steel Production: 110.7 million tons

Interesting Fact:

Tokyo Tower, a communications and observation tower in Japan’s capital city, was built in 1958. It was constructed of steel, a third of which was scrap metal taken from 90 US tanks damaged in the Korean War. At 4,000 tons, it is significantly lighter than the Eiffel Tower, which weighs 7,000 tons, a result of exceptional advances in construction technology and steel manufacturing. (Source: http://bit.ly/1K3tHbS)

1. China

Crude Steel Production: 822.7 million tons

Interesting Fact:

The Chinese were the first people to combine carbon and iron to make steel. They’ve been making it since the first century BC in blast furnaces powered by the Asian monsoon winds. In recent years, they’ve become the world’s largest producer of steel, and consume twice as much steel as the US, Europe and Japan combined. (Source: http://bit.ly/1KzAKpG)

Production rates according to the World Steel Association (worldsteel) 2014 World Crude Steel Production Performances.

A previous article from last month that promoted the second annual Steel Safety Day outlined the five major causes of injury, which are: Moving Machinery, Falling from Heights, Falling Objects, Gas and Asphyxiation and Overhead Cranes. Each year, Steel Safety Day will focus on one of the five major causes. This year’s Steel Safety Day, which takes place on April 28, 2015, will focus on Moving Machinery.

To download the infographic, click here.

The infographic above lists the five key areas of Moving Machinery, which are training & competency, safe access, guarding & signage, isolation & immobilization, and roles & responsibility. The infographic is meant to give workers a better understanding of the risks and to prevent or reduce any injuries. Similarly, the video below goes into detail about these areas, and suggests a few tips on how to avoid accidents.

It is now our turn to be aware of these practices and apply them in daily life! And remember we learned about only first cause, there will be articles about other causes in the future, so please stay tuned!  

That’s why the World Steel Association (worldsteel) is celebrating the second annual Steel Safety Day on April 28, 2015, to remind industry leaders and manufacturers that excellence in safety and health helps everyone succeed. One of the major goals worldsteel aims to achieve is an “injury-free, illness-free and health workplace with zero incidents.”

The organization released an infographic on March 10 of some quick reminders to companies and employees around the world to help them prevent incidents even before they start.

Safety doesn’t just depend on the workers. To ensure that workers are able to perform at their best, worldsteel says that management also plays a big part in keeping workers safe and healthy.

Since the last Steel Safety Day in 2014, worldsteel estimated that about 75 percent of companies had mitigation plans. But in the coming year, it hopes that number reaches 100 percent.

The event, which was established last year, is intended to raise awareness of the five most common cases of safety accidents. According to worldsteel, by focusing on the five causes – moving machinery, falling from heights, falling objects, gas and asphyxiation, and moving cranes – the organization intends to set up a continuous improvement process and reiterate its commitment to the safety and health of the people who work in the industry.

To find out how to reduce the five main causes of injury, consult the infographic and video below: 

(find more details on worldsteel website)

The Global Contribution of the Steel Industry

Did you know that steel is making the world a better place every day? The amount of daily steel production is enough to build 548 Eiffel towers. Also, steel companies provided 7.8 days of training to each employee in 2013 and 8 million people which is about the same as the population of Switzerland, is working in the steel industry. Moreover, the $100 billion paid in tax is equivalent to putting 10 million students through school each year or building 5,000 new hospitals!

Watch this interesting video created by worldsteel to learn about steel’s global contribution!

Can You Imagine Your Day without Steel?

As mentioned above, steel is enriching the world every day. And, this marvelous material accompanies us through the day: in the bedroom, at work and every where we go. Did you know that steel is indispensable to our daily lives? If you are doubtful, just check the infographic below!

Even More Steel?

Have you ever imagined how pervasive steel is? Can you think of more steel use in our everyday life? Check out our previous postings to learn about the material’s ubiquitous presence in our life and share with us if you can think of anything more!

• What are Automobiles Made of?
  

The automobile is an important part of our daily lives. And steel is a crucial requirement to build this important part. POSCO’s light, but also very durable automotive steel sheets are advancing the global auto industry.

• What is Steel Used For?
  Steel brings amusement and vibrancy to our lives by bringing musical tunes to our ears. Find out more about what steel is used for and how steel is dissolved into our daily lives.

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Worldsteel’s #lovesteel Campaign

In September 2013, the worldsteel launched its #lovesteel campaign for social media and worldsteel website. The #lovesteel campaign is a series of short videos that highlight working experiences in the steel industry. The series consists of interviews of people of worldsteel member companies, and their insights on exciting world of the steel industry to inspire young people who are interested in steel career.

POSCO Also Participated!

In fact, as a member company of worldsteel, POSCO was one of the participants of the campaign. The 14^th video of the series features Yerim Kim who is working in Investor Relations at POSCO. Let’s find out what inspires Yerim to work in the steel industry by watching the video below.

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