POSCO in Korea’s History - Home - SEAISIseaisi.org/seaisi2017/file/file/full-paper/Keynote -...

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POSCO Established (1968)

POSCO in Korea’s History < 1 >

Gwangyang Works (1992)Pohang Works (1973)

Modernization (1962-1982)Korean War (1950) Seoul Olympics (1988)

< 2 >The Hope of a Bright Future

Gwangyang Works

Pohang Works

Group Overview: Business Portfolio

POSCO

Group

Trading

Infra-

structure

Materials

&

Chemical

Energy

POSCO DAEWOO

POSCO E&C

POSCO A&C

POSCO CHEMTECH

POSCO M-TECH

POSCO ESM

POSCO ENERGY

ICT

POSCO ICT

< 3 >

Group Overview: Worldwide Operation and Performance

16,957

14,811

60,706Employees

Global POSCO Affiliates

28,938

2016 Financial Highlights (Consolidated)

4.1%

Revenue

2015 2016

(million U$)45,722

2,449Operating

Profit

5.4%

Operating Profit Margin

< 4 >

(million U$)

POSCO’s 50 Years of Journey

Established

(1968)

Pohang Works

First Stage

Completed (1973)

Gwangyang Works

Completed (1992)

Listed on NYSE

(1994)

PT.Krakatau POSCO

Completed (2013)

POSCO Energy

(Acquired, 2005)

Daewoo International

(Acquired, 2010)

0.5 Mt

20 Mt

(2016)

37.5 Mt

< 5 >

Revenue

Crude Steel Production

Phase 1: Foundation

Phase 2: Domestic Expansion

Phase 3: Diversification & Global Expansion

Phase 4: Smartization

Auto

44.5

Others

Transport

Construction

20

19.5

16

Source: worldsteel (2015)

N. America

LATAM

CISEU

China

India

Asia(Ex-China)

POSCO in the Global Steel Market

6.9%

2.7%

10.3%6.3%

49.6%

13.3%

5.5%

World Production

(Crude Steel)

1,620.5 Mt

4.3%South Korea

ME+Africa

2.7%

(%)

POSCO

Hyundai

Steel

Others

52

28

20

< 6 >

(%)

Challenges Responded

Foundation Domestic Expansion

Diversification

& Global Expansion

?Technology

Experience Capital

$ Gwangyang

SteelworksLand Reclaimed

CAGR* :

15.1%

CAGR:

2.5%

‘92‘68 * CAGR: Compound Annual Growth Rate

< 7 >

• Overwhelming uncertainties

• Lack of fundamentals

• Respond to domestic demand

• Support economic development

• Seek new business opportunities

• Broaden global presence

Core Values Discovered

Job creation

Global CSR activities

Production: Carbon management system

Products: Lighter yet stronger steel for

vehicles Solution Marketing

Solution based Platform Business

Co-prosper

with local

communities

Being

responsible for

the next

generation

3. Society

1. Customer

2. Environment

Provide solutions to enhance

customer’s value

< 8 >

Core

Values

1. Customer: Solution Marketing

Commercial SolutionTechnical Solution

PosCoZy(Absorbing noise)

PosMac(High Corrosion Resistant)

PossSD(Lean Duplex Stainless Steel)

Giga Steel(Ultra Advanced High Strength Steel, TWIP)

Human Solution

Reinforcing Services

Marketing

< 9 >

1. Customer: Solution Based Platform Business

POIST SolutionsSolution Based Platform Business

* POSCO Innovative Steelmaking Technology

A

B

C

1.Technologies1-1 Finex

1-2 CEM

2. Engineering

3. Operations

ㆍㆍㆍㆍㆍㆍㆍㆍ23 in total

Combination

of Expertise

Customized

Solutions

Types of

Collaboration

Market

Development

Royalty

Technology

FINEX

CEM

= POIST*

< 10 >

Carbon Management System

Integrated GHG and

Energy Information /

Reduction Manage-

ment.

Carbon Accounting

Management

Management of

Emissions

Verification

* Based on Global Standard Energy Management System (ISO 50001)

10%of all CAPEX allocated to environmental facilities

2. Environment: Production: Carbon Management System

Green area coverage

22%

< 11 >

45%

2. Environment: Lighter yet Stronger Steel for Vehicles

PBC_EV*

*POSCO Body Concept_Electrical Vehicle

Body Weight

Conventional PBC_EV

218 kg

-26%296 kg

Usage of GIGA Steel

Lighter Stronger Fewer GHG

Emissions

U-AHSS & X-AHSS*

CO2 Emissions down by

50%

< 12 >

* U-AHSS: Ultra Advanced High Strength Steel

* X-UHSS: eXtra Advanced High Strength Steel

3. Society: Job Creation

4,4246,105

10,529Employees

POSCO Affiliates

Jobs Created In Southeast Asia

KPSE.SI PerformancesPT. KPSE Services Indonesia

< 13 >

As a social enterprise founded in 2014,

aims at creating jobs for youth in 3 villages

near PT. KP by offering skills training

3. Society: Global CSR Activities

POSCO H beams(Steel Frames)

Steel Village, Vietnam

< 14 >

PosMac(High Corrosion Resistant

Guard Rails)

Steel Bridge, Myanmar

Strategic Approaches and Challenges Beyond

Competition & Collaboration1

Cultural Diversity3

Software & Hardware2

< 15 >

Strategic Approach 1: Competition & Collaboration

CSP (Companhia Siderurgica do Pecem)PT.KP (PT. Krakatau POSCO)

- Capacity: 3Mt/year

- Partners: Dongkuk Steel, Vale

- Location: Brazil

- Capacity: 3Mt/year

- Partner: Krakatau

- Location: Indonesia

< 16 >

Strategic Approach 2: Software & Hardware < 17 >

사진 구성 중

Strategic Approach 3: Cultural Diversity < 18 >

“We must not discriminate against other employees or stakeholders based on race,

nationality, gender, disability and religion. We must respect the dignity and diversity

of each individual.”

Ethics

Charter

Practice

Guideline

Code of Ethics

Global Employees attending the Global Mobility Program

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