Chairman In-hwa Chang: “I extend my deepest gratitude to all POSCO Group employees who made today’s honor possible··· We will leap forward as a global premier materials company through bold challenges and innovation”

Discusses manufacturing AI transformation and solutions to global economic fragmentation with opinion leaders, experts, and scholars at the Korea Society roundtable, exploring Korea-U.S. cooperation opportunities

POSCO Group announced its strategy for strengthening global leadership in New York, exploring manufacturing solutions through cooperation between Korea and the U.S. in the AI and energy sectors.

Chairman In-hwa Chang participated in the Global Steel Dynamics Forum hosted by World Steel Dynamics (WSD, a global steel industry analysis organization) in New York on June 18 (local time), introducing POSCO Group’s strategy for advancing as a premier future materials company.

The event was attended by steel industry leaders and approximately 500 industry stakeholders, including David Burritt, CEO of U.S. Steel, Lourenco Goncalves, Chairman of Cleveland Cliffs, and TV Narendran, CEO of Tata Steel.

The forum was made particularly meaningful with a ceremony inducting POSCO Holdings as the first global steel group to be permanently enshrined in the WSD Hall of Fame.

▲POSCO Group Chairman In-hwa Chang (left) poses for a commemorative photo after receiving a specially crafted WSD Hall of Fame plaque in the form of a baseball jersey from WSD CEO Philipp Englin at the WSD Forum held in New York on June 18 (local time).

POSCO Holdings has been ranked first for 15 consecutive years since 2010 in WSD’s “World’s Most Competitive Steel Company” evaluation, which has assessed 35 steel companies worldwide since 2002 across 23 criteria, including technological innovation, production scale, cost reduction, processing costs, financial soundness, customer accessibility, and raw material procurement. The company was inducted into the Hall of Fame in recognition of this honor and superior competitiveness.

Chairman Chang expressed his sentiments, saying, “The 15 years of maintaining first place in overall competitiveness is by no means a short period, and I am deeply grateful for the valuable sweat and dedication of all POSCO employees.” He also conveyed his appreciation, noting that “the Hall of Fame induction represents encouragement and support from the global steel industry.”

He emphasized that this induction marks the beginning of a new chapter for the POSCO Group, which will continue its relentless efforts to enhance competitiveness through the realization of intelligent factories via AI and the development of hydrogen-based steelmaking technology, becoming a POSCO that grows responsibly through a bold and challenging spirit and continuous innovation.

Prior to the forum, Chairman In-hwa Chang participated in a roundtable organized by The Korea Society, an organization established to promote mutual understanding and cooperation between Korea and the United States, on June 17 to explore Korea-U.S. cooperation strategies centered on group businesses.

The roundtable was attended by experts and scholars from both countries in the fields of AI, geopolitics, and energy, including Korea Society Chairwoman Kathleen Stephens, President Thomas Byrne, University of Maryland Chair Professor Jay Lee, and American Energy Alliance President Mark Menezes.

The session featured in-depth discussions on Korea-U.S. cooperation opportunities in the steel, secondary battery materials, and energy sectors amid geopolitical uncertainties, including global economic fragmentation.

Additionally, practical solutions were explored to address challenges facing manufacturing during the AI transformation era, including the utilization of the “Industrial Large Knowledge Model (ILKM)” that enhances reliability by integrating expert process knowledge and data from various fields into AI, as well as robot automation solutions for high-risk, non-standard manufacturing environments.

In April, Chairman In-hwa Chang attended the World Steel Association Executive Committee meeting in Australia, inspected the Senex Energy gas field project site in Australia, and visited the construction site of Ultium CAM, a cathode material production subsidiary located in Canada, to personally oversee global secondary battery materials business operations. In May, he participated in the opening ceremony of Australia’s Core Resources Research Institute, the first overseas resource-specialized research institute established by a Korean company, continuing his global management activities centered on steel and secondary battery materials businesses.

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.

Chairman In-hwa Chang introduced the unique aspects of POSCO Group’s core business competitiveness, notably the ‘Green Transformation (GX) and Digital Transformation (DX) plan’ for the steel business, and the pioneering ‘next-generation battery material development’ for the secondary battery materials business.

Shared POSCO Group’s vision for carbon neutrality and an eco-friendly future society through investments in hydrogen reduction steelmaking and secondary battery materials, presenting a future roadmap for the global steel industry.

Chairman In-hwa Chang showcased POSCO Group’s strategy to secure competitive advantages on the global stage for the first time, aiming to propel the company into a premier future enterprise.

▲Chairman In-hwa Chang is delivering a keynote speech on ‘Innovation Towards Future Competitive Excellence’ at the Global Steel Conference in New York on June 18.

On June 18 (local time), Chairman Chang delivered a keynote address on ‘Innovation Towards Future Competitive Excellence’ at the Global Steel Dynamics Forum in New York, hosted by the world-renowned steel analysis firm, World Steel Dynamics (WSD).

The Global Steel Dynamics Forum is the largest annual global steel conference in the Americas since 1986, attracting major steel companies, equipment and engineering firms, and financial institutions. This year’s forum was attended by over 500 industry leaders and stakeholders, including Lourenco Goncalves, Chairman of Cleveland Cliffs, Mark Millett, Chairman of Steel Dynamics, Inc., and Jayant Acharya, Chairman of JSW, to discuss current issues and the future of the steel industry.

In his keynote speech, Chairman Chang highlighted POSCO Group’s innovation efforts to address global megatrends such as industrial transformation, geopolitical uncertainties between the U.S. and China, and demographic and social structural changes. He introduced the company’s business strategies based on steel and secondary battery materials and organizational culture innovation, capturing the attention of the attendees.

Chairman Chang presented Green Transformation (GX) plans through a low-carbon supply system and Digital Transformation (DX) to create Intelligent Factories in the steel sector. He emphasized that the commercialization of hydrogen reduction steelmaking technology, ‘HyREX,’ would complete a low-carbon facilities system, achieving carbon neutrality by 2050. He also stressed the implementation of Intelligent Factories, an intelligent autonomous manufacturing process through collaboration between humans, AI, and robots.

POSCO Group plans to secure unrivaled cost competitiveness using GX and DX technologies while strengthening the construction of a safe work environment by replacing high-risk, high-intensity tasks with AI and robots.

In the secondary battery materials sector, the focus is on securing raw material competitiveness, such as lithium and nickel, while committing to unwavering investments to complete the entire value chain from raw materials to anode and cathode materials and next-generation battery material technology development, with the goal of early commercialization.

Chairman Chang also shared communication strategies to spread a young and dynamic corporate culture in the traditionally manufacturing-centric steel industry, actively engaging with future generations, including Gen Z. As a representative case, he introduced the animation advertisement ‘Fantasteel,’ created in collaboration with the online gaming industry last year, which garnered significant empathy from the younger generation with nearly 34 million views.

Concluding his speech, Chairman Chang shared POSCO Group’s vision to expand its business with innovative materials for an eco-friendly future society and to leap forward as a premier future enterprise with a spirit of challenging limits. He called on the global steel industry to unite to overcome and solve pressing issues such as carbon neutrality.

After the keynote speech, in response to a question from Philipp Englin, Chairman of WSD, about prospects for the electric vehicle market, Chairman Chang stated, “The automotive market will eventually transition to electric vehicles. We will continue to seek new investment opportunities, using the chasm period as an opportunity to solidify our internal stability.”

Meanwhile, WSD has selected and announced the world’s most competitive steel companies annually since 2002. Last year, POSCO was named the world’s most competitive steel company for the 14th consecutive year.

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

WSD Highly Commends POSCO’s Carbon Reduction Efforts, Including the Vision of “Better World with Green Steel”

POSCO has achieved a remarkable accomplishment by securing the top spot as the most competitive steelmaker globally for the 14th consecutive year.

World Steel Dynamics (WSD), a well-known global steel analysis institution, revealed the results of its World-Class Steelmaker Rankings on December 18 (local time in New York).

Facing tough sales conditions such as a slowdown in domestic demand and growing global trade issues, POSCO successfully overcame these challenges and accomplished the formidable task of fully normalizing operations after the Naengcheon River flood. The company scored the highest in six categories, including technological innovation, processing costs, workforce capabilities, mergers and acquisitions, national risk, and upstream and non-steel industries, ranking first overall with 8.62 out of 10 points.

Founded in 1999, WSD evaluates 35 of the world’s leading steelmakers based on 23 criteria, including technological innovation, cost reduction, processing costs, financial stability, customer accessibility, and raw material accessibility, and has published comprehensive annual competitiveness rankings since 2002. These rankings are an essential reference point for assessing the management performance and future potential of major global steel companies.

WSD clarified that POSCO’s remarkable score is attributed to its vision of “Better World with Green Steel” and its efforts in carbon reduction steel production.

The company was also named the Sustainability Champion by the World Steel Association for two consecutive years in April and was awarded in the “Sustainability” category at the Steelie Awards in October.

At the first Breakthrough Technology Conference organized by the World Steel Association in Abu Dhabi, UAE, on December 5, POSCO shared information about its carbon neutral strategy and unique hydrogen reduction ironmaking technology, HyREX. POSCO discussed the current status of its development, as well as low-carbon bridge technologies, which demonstrates its leadership in promoting carbon neutrality in the global steel industry.

▲ Stainless steel cold rolled coil products produced at POSCO Pohang Works.

As the only global institute who quantifies a company’s competitiveness using objective indicators, WSD evaluates the competitiveness of top 34 steel companies around the globe based on the 23 criteria ranging from technology, innovation to the environment – seven of which POSCO achieved perfect scores.

WSD’s report is a crucial indicator that can help predict the potential and performance of the companies. What is the secret sauce for POSCO’s unwavering competitiveness? POSCO Newsroom presents, ‘The POSCO Way.’

Since 2002 when the annual WSD’s ranking announcement began, POSCO had securely retained first place for three years until 2004. Albeit its slight dip to second place from 2005 to 2009, POSCO has ascended yet again, attaining world’s most competitive steelmaker for the ninth consecutive year since 2010.

ㅣWSD Steelmaker Ranking Progress from 2002 to 2018

Despite unsteady rankings of worldwide prominent steelmakers ranging from third to tenth, POSCO’s enduring position as first and second place reflects POSCO’s staunch management and firm commitment amid complicated management conditions over the last 17 years.

WSD has the following total of 23 criteria for evaluating steelmaker competitiveness:

ㅣWSD Evaluation Standard

Based on the 10-point scale, WSD determines each factor with a weigh, and then weighted average in the final stage to pull off the ranking score. POSCO was first to exceed the 8-point scale average in 2014. Subsequently, landing first place meant reaching from high on the 7-point scale to 8-point scale.

POSCO won perfect points in the eight evaluation categories including cost-cutting efforts, harnessing tech revolution, downstream business, and skilled & productive workers. High scores were received in pricing power in the home market, profitability, size, and expanding capacity categories.

POSCO has undergone about 150 intensive restructuring for three years since 2014, achieving close to 6.3 billion US dollars (7 trillion won) in cumulative financial improvement. And the company’s earnings at both its domestic and overseas subsidiaries have turned into surpluses, laying a steady foundation for future prospects. In like manner, profit continues to grow as the margin exceeds 7%, and debt ratio remains at the industry’s lowest level of 60%.

POSCO’s advancement in the 4th Industrial Revolution is highly anticipated with expanding sales of WP(World Premium) products through adopting Solution Marketing, and in accelerating the completion of total solution business portfolio from vehicle components to networking systems. Moreover, strategies to implement smartization of factories and marketing them as solution package are under way.

ㅣPOSCO’s Exclusive Future Strategy

Having maintained world’s top position withstanding severe recession caused by surplus over the past three to four years, this stance is reflected in this year’s WSD ranking and is expected to continue.

POSCO has been recognized as the leading company among the world’s top steelmakers for the past eight consecutive years. To note, POSCO received this year’s honor in the midst of difficult domestic and overseas market conditions due to last year’s global oversupply, tighter import regulations triggered by the spread of protectionism and internal financial restructuring.

The Steel Survival Strategies held discussions on current trends and future strategies of the global steel industry before the WSD announced the honor. Thirty-seven steel companies around the world were evaluated on 23 different criteria such as production scale, profitability, technological innovation, price competitiveness, cost reduction, financial soundness and raw material acquisition.  

POSCO has topped the list a total of 13 times since 2002, when WSD first began its global competitiveness rankings, putting POSCO at the top of the rankings for the longest period of time.

POSCO came out on top with a perfect 10 in five categories: technological innovation, cost reduction, labor skills, restructuring and investment environment, putting the overall score at 8.31 points. The total was 0.26 points higher than last year, due to positive evaluations of POSCO’s solutions marketing activities, the expansion of high-value-added products as well as its financial restructuring.

Other notable companies on the list include Russian steelmaker Severstal (second place) for iron ore and coal mines, US steelmaker Nucor (third place) for their technological innovation and profitability, NLMK steelmaker (fourth place) for their iron ore, and NSSMC (fifth place) with positive evaluations in business diversification and restructuring.

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The announcement distinguished POSCO as the world’s top steelmaker for the eighth consecutive time in six years. 

The WSD evaluated 36 steelmakers from all corners of the globe in 23 categories including production capacity, profitability, technological innovation, cost competitiveness, cost savings, financial stability, and procurement, as of June 2015.

As a result of focusing on the enhancement of core corporate competitiveness by growing the sales of high value-added premium products and solution marketing founded on technology, POSCO acquired an average of 7.91 points, with a maximum score of 10 points in technological innovation, putting the Korean steelmaker at the No.1 spot. 

According to the WSD’s rankings, following POSCO was the second-ranking American mini-mill steelmaker Nucor Corp., having reaped the benefits of the shale gas developments that coincide with the recent recovery of the steel market in industrialized nations. Nippon Steel and Sumitomo Metal of Japan ranked third, demonstrating rising sales related to increased export competitiveness under the Abenomics policies. Brazil’s Gerdau came in fourth, followed by Severstal of Russia. Hyundai Steel of Korea ranked ninth for the second consecutive year. 

During the Steel Success Strategies forum, which was held under the theme “Just the Beginning,” it was forecasted by the WSD that the global steel industry would continue at its current slow pace for some time after assessing the short-term market conditions from 2015 to 2017. On the bright side, the organization noted that the global steel industry should recover some momentum and see improvements in the raw materials market from 2017. This, of course, is uplifting news as POSCO continues to move forward.

Top 10 Rankings of World-Class Competitive Steelmakers 

1 POSCO (Korea) 7.91 
2 Nucor (U.S.A.) 7.55 
3 Nippon Steel & Sumitomo Metal (Japan) 7.49 
4 Gerdau (Brazil) 7.34 
5 Severstal (Russia) 7.31 
6 JSW Steel (India) 7.20 
7 NLMK (Russia) 7.14 
8 JFE(Japan) 7.104
9 Hyundai 7.05
10 Erdemir 7.03

POSCO was recently named by WSD as the world’s most competitive steelmaker for the seventh time in a row during the past five years. Apart from receiving credit for technological innovation and human resource management, POSCO has also been making continuous socio-economic and environmental efforts side by side with its stakeholders to create value and bolster mutual growth. The recently published 11^th annual sustainability report sums up these efforts. Let’s have a closer look.

About the 2013 Sustainability Report

[Download the 2013 Sustainability Report HERE]

First, the Report includes both financial and non-financial data.

POSCO and listed subsidiaries within the POSCO Family*, or those having more than KRW 1 trillion in sales are included in the consolidated ESG(environment, society, governing structure) data, which was verified by Samil PricewaterhouseCoopers.

Second, we report ‘Key Issues’ which have high ranks in the materiality test.

The report also includes specific information on the issues selected from the materiality test in order to include detailed information that the stakeholders want to know.

Third, we gathered the opinions of internal and external stakeholders and reflected them in the materiality test before publishing this Report.

Previously, there were some difficulties in reflecting stakeholders’ opinions because they were gathered in the course of preparing the Report. For this Report, however, we listened to stakeholders’ opinions from the planning stage and linked them to the materiality analysis process.

Fourth, we reported the cases of CSV (Creating Shared Value), ‘a management principle that seeks opportunity for business in solving social problems’.

We marked CSV cases separately within the contents describing POSCO’s management activities, including building a Saemaul Village in Ethiopia, training agricultural leaders in Mongolia, the Benefit Sharing Program, and Techno Partnership.

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Note: 2013 Sustainability Report further references

Reporting approach
The 2013 Report is based on the GRI (Global Reporting Initiatives) G4 guideline, ISO 26000, UN Global Compact, and POSCO’s unique report publishing process. The financial information reporting standards and definitions are based on the K-IFRS (Korean International Financial Reporting Standards.

Period of reporting
POSCO publishes the report annually. This Report contains information from January 1st, 2013 to December 31st, 2013. In some instances information up to April 2014 were included. The corporate governance section is based on the decisions made by the Board of Directors at the meeting held on March 14, 2014.

Scope of reporting
The Report contains the sustainability activities and performances of Pohang Steelworks, Gwangyang Steelworks, Pohang headquarters and the Seoul office. The ESG (Environment, society, governing structure) data covers POSCO and nine POSCO subsidiaries that are listed in the stock exchange or have more than KRW 1 trillion in sales. Information on shareholders, investors, and new green growth businesses cover the whole POSCO subsidiary.

Independent assurance
Assurance on this Report was conducted by Samil PwC, an independent assurance institution, in order to assure stakeholders on the credibility of the major data and publishing process of the Report. Assurance was conducted in accordance with ISAE3000 and AA1000AS Type II.

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POSCO 2013 Highlights

Why don’t we take a look at what efforts POSCO made during the year 2013, and their results?

[Click titles for details]

1. POSCO WINS THE ‘WORLD’S MOST COMPETITIVE STEELMAKER’ AWARD FOR 4 CONSECUTIVE YEARS!

On February 1, POSCO was named “The World’s Most Competitive Steelmaker” for the fourth time in a row. This was the result of the evaluation conducted by WSD (World Steel Dynamics) on 34 of the world’s steelmakers in 23 categories including production capacity, profitability, and technology innovation. POSCO had held the top position from 2002 through 2004, then was surpassed by Russian and Indian steelmakers, but regained top spot again in 2010 after 6 years, and has hence remained no.1 for 4 consecutive years.

2. POSCO RENOVATES WORLD’S BIGGEST FURNACE AT GWANGYANG STEELWORKS!

On June 7, after 108 days of repair works, POSCO held the blow-in ceremony for Gwangyang Steelworks’ No.1 blast furnace that was renovated as the world’s largest blast furnace. After its third enhancement made in 2013, Furnace 1’s volume now reaches 6,000 bigger than the previously world’s largest furnace (5,800) built by Shagang Group in China. The Gwangyang blast furnace applies a new cooling system, a production technology involving oxygen enrichment, and reduces fuel consumption by using high-temperature reducing gas efficiently, achieving a cost effective and environmentally friendly process.

3. DAEWOO INTERNATIONAL STARTS PRODUCTION AT MYANMAR GAS FIELD

On June 22, Daewoo International successfully began production at the Mya gas field, located in the northeastern sea of Myanmar. The Myanmar gas field project came in full swing when Daewoo International signed a PSC with the Myanmar Government. The gas produced was passed through the subsea pipeline, subsea production facility, and the production platform to check the gas production and treatment facility, and began selling to CNPC, a Chinese state-owned petroleum company from the gas selling location in Kyauk Phyu, west of Myanmar, since July 2013!

4. DECLARATION OF THE NEW ETHICAL MANAGEMENT PRINCIPLES

Celebrating the 10th anniversary of the proclamation of POSCO’s Code of Conducts, POSCO held a declaration ceremony for the New Ethical Management principle. The new principle, dubbed “Happiness Management” presents the vision “Let’s Come Together to Build a Better World!” and its 3 core values – future, common good, and win-win.

5. POSCO INCLUDED IN THE SUSTAINABILITY INDEX FOR NINE CONSECUTIVE YEARS!

For the first time in the steel industry, POSCO was included in the Sustainability Index by SAM-Dow Jones as a leading company for 9 consecutive years! In the 2013 evaluation, 31 steelmakers were evaluated, and POSCO received 77 points – 3 points higher than the previous year – and was selected as an outstanding company for the 9th consecutive year.

6. FIRST EXPORT OF FINEX TECHNOLOGY

On September 22, POSCO signed an MOA with state-owned Chongqing Iron and Steel Company, to construct a FINEX integrated steel plant. POSCO and Chongqing will each invest 50% in the joint project to build the FINEX integrated steel plant with an annual capacity of 3 million tons.

7. 1% FOUNDATION INAUGURATED!

POSCO’s 1% Foundation was officially inaugurated on November 18. The 1% Foundation was first started in October 2011, where executives and management-level personnel donated 1% of their salaries. POSCO and 26 POSCO Family companies participate in the campaign. The Foundation will implement sharing campaigns using the KRW 4 billion’s worth fund raised through donations during 2013 and the company’s matching grant.

8. INTEGRATED STEEL PLANT IN INDONESIA BEGINS OPERATION

On December 23, POSCO held the blowing-in ceremony for the 3 million tons/year blast furnace in Cilegon, Indonesia. Krakatau POSCO is expected to produce 1.8 million tons of slab and 1.2 million tons of thick plates annually. Krakatau POSCO will secure the domestic sales network which can fetch higher prices than exporting the products, and plans to sell 1.5 million tons of slab and 600 thousand tons of thick plates in the Indonesian market during 2014.

POSCO’s vision is to become a company “loved by the people and admired by the world.” As CEO Ohjoon Kwon promised in his foreword to this report, POSCO will fulfill its duties and obligations as a corporate citizen. As a company built upon the very wishes and aspirations of the nation, POSCO will remember that it is forever in debt to the people and act accordingly. From the endeavors in preserving biodiversity to sharing with those in need through the 1% foundation, POSCO’s corporate philosophy will always be about the betterment of humanity.Thank you.

POSCO named most competitive in Global steel information provider WSD’s assessment of 36 steelmakers around the world

POSCO has been named the world’s most competitive steelmaker for the 7th consecutive time during the past five years.

Global steel information service provider World Steel Dynamics (WSD) announced the World-Class Steelmaker Rankings during the 29^th Steel Success Strategies (SSS) forum on Tuesday, June 17 New York Time.

POSCO earned high points in technological innovation and human resource management

WSD gave the top mark of 7.91 points out of 10 to POSCO. It said POSCO received highest points in four segments, including technological innovation and human resource management.

As of June 2014, WSD made an assessment of 36 steelmakers around the world in 23 categories including production size, profitability, technological innovation, cost competitiveness, cost saving, financial stability, and procurement.

WSD gave credit for POSCO’s improvement on its core steel competitiveness

WSD also gave credit for POSCO’s effort to bolster stable growth and improve core corporate competitiveness by increasing sales of value-added high-end products and engaging in technology-based solution marketing. The company got higher points compared to the previous year on technological innovation, value-added rolled steel production and doing more to bolster downstream steel-related industries.

Following second was American mini-mill steelmaker Nucor Corp. which has enjoyed shale gas development privileges along with a recent recovery in the steel industry among developed nations. Japanese steelmakers NSSMC and JFE followed third and eighth with sales rising due to increased export competitiveness under Abenomics.

Meanwhile SAIL and Jindal, Indian companies that were among the top 10 last year, failed to remain in the list this year. Instead, Hyundai Steel, which secured 24 million tons for production, ranked ninth to join the top 10.