POSCO, founded in 1968 to supply steel domestically, is a leading corporation in Korea that has played a big role in the growth of the national economy for over 43 years.
With integrated steel plants in Pohang and Gwangyang, POSCO is fueling its competitiveness by continuously responding to the rapidly changing business environment, and consequently the company leads the global steel industry.
POSCO is viewed as a leading company globally and was selected as the ‘Most Respected Company in 2011’ in the steel industry by Fortune magazine, and ‘Most Competitive Steel Company of 2010’ by World Steel Dynamics.
To secure global competitiveness, POSCO has achieved its own technical leadership in providing distinguished, strategic product lines, and has remained competent with further improvements in the cost structures at every step of production by minimising wasteful expenditures.
POSCO has set strategic goals to pursue Global TOP3 in terms of quality in Korea, where the company has amassed the technical competence and know-how of its 17,000 employees by increasing investments in higher value-added businesses, while securing Global BIG3 in terms of quantity abroad by expanding global growth investments.
In order to achieve this, POSCO plans to start construction of the first integrated steelworks in South-East Asia, with an annual six million ton scale for the first time in Indonesia’s Cilegon, which will dominate the local market. Three million tons of molten iron can be produced after completion of the first stage of construction in 2013.
In particular, CEO Joon-Yang Chung, Korean representative for Korea-Australia Business Council, proposed ‘Open Management,’ ‘Creative Management,’ and ‘Green Management’ as the new management principles during his inauguration in 2009, and in turn has offered a renewed direction for POSCO in preparation for the future.
“The company has planned to increase its investments in Australia in the future, not only in raw materials used in steel production, but also in green energy business, while strengthening the economic ties between the two countries”
“‘Green Management,’ one of the three new principles, was created on the notion that overcoming fundamental limits as an energy-consuming, carbon-emitting industry and protecting the environment should be the primary business ethics for the steel industry,” says Chung. “By taking the lead in responding to environmental issues and focusing on developing green technological innovations that can reduce the use of resources, we should propose an eco-friendly, sustainable model that can change the paradigm of the steel industry in the future.”
Furthermore, POSCO is expanding its win-win business ideal with small and medium enterprises and actively driving Six Sigma strategies, consequently creating POSCO’s unique management style, which is often acknowledged as being superior to that of its competitors.
Beyond the first two stages of the business cycle, namely ‘Start-up’ and ‘Growth’, POSCO has set 2010 as the first year of the third stage – ‘Maturity’ – with the motto, ‘POSCO 3.0’. POSCO is now aspiring to achieve a sales figure of 200 trillion won by 2020, through not only steel, but also general materials such as magnesium, titanium, lithium, nickel, etc., as well as through renewable energy businesses such as fuel cells, wind power, smart grids, etc.
POSCO recognises that stability in the supply and demand of the raw materials is a crucial factor in achieving the company’s future goals, and in regard to this, Australia is recognised as the most important supplier of raw materials for POSCO.
POSCO is meeting more than half of its iron ore and coal needs with supply from Australia and it has already invested in many mining projects there, including five mines for iron ore, eight for coal, and one for manganese.
Last year, POSCO teamed up with Astron Ltd to produce materials for zirconium tubes. The company has planned to increase its investments in Australia in the future not only in raw materials used in steel production but also in green energy business, while strengthening the economic ties between the two nations.
Through continuous growth and innovation, as well as an active overseas business development, POSCO will advance to become an enterprise that is powerful, yet takes the initiative to remain ethical and socially responsible by contributing to the protection of the natural environment and living conditions, and thus grow to be a trusted name in the community.