Success
                   of POSCO
- Second steel plant opened in Qingdao, China

POSCO launched the operation of its cold stainless steel plant in Qingdao, China on March 10, in a ceremony attended by a host of dignitaries including POSCO Chairman Lee Ku-taek.
POSCO holds a 70 percent stake in the new joint venture firm, Qingdao Pohang Stainless Steel, China Qingdao Steel Group 20 percent and POSCO China 10 percent.
The new steel firm, with a capacity to turn out 180,000 tons of stainless steel annually, is the second steel mill that POSCO set up in China
POSCO successfully built the Qingdao-Pohang cold steel plant after breaking ground in April, 2003, to supply cold steel products in northern Chinese regions. POSCO will supply hot-coil steel to its new Chinese steel plant. Chairman Lee, in his congratulatory speech, said POSCO will double its efforts to be a local firm in China, calling on cooperation and support from local residents and the governments in its endeavor.
Chairman Lee became the first Korean CEO to make a speech at China's Qinghwa University in Beijing March 11 as an invited guest. Lee spoke about POSCO's growth history, the reasons for its success and its future business direction under the title of "POSCO Story".
He said POSCO was reborn as a steel producer with the highest profit as a result of management reform following its quantitative growth until the early 1990s. It pursued both quantitative and quality growth and succeeded.
He recalled that the steel maker has been faithful to its founding philosophy that it should contribute to national growth by making best-quality steel products and be successful, sticking to principles and basics in its management.
He said POSCO has been after three objectives in its strategy including globalization, the development of new steel-making technology and continued reform in its effort to contribute to sustainable development for all mankind.
Lee became the first top business executive to make speech at the famed Chinese university, although invited speakers at the university included many top politicians and heads of state. Chinese President Hu Jintao is an alumni of the university, among many Chinese leaders who studied at the university.
The POSCO chairman told the audience packing the huge auditorium that POSCO has become an enterprise enjoying respect from a number of world-renowned publications including Fortune and Business Week and is being recognized as a IT reform corporation. "In Korea, the steel company is being regarded as a good goalkeeper, although it doesn't have a colorful presence", he said.
Lee said the ratio of net profit to sales came to 19 percent last year; Other steel makers made from $7 to $8 out of every $100 in sales, POSCO cleared $19, the highest in the world among steel makers.
He said POSCO has been able to establish a digital management by successfully taking advantage of IT and it allocated 9 percent of total investment in facilities to improve the environment as if steel mills are located in a park. Some of the factors that made POSCO the company it is today, he said, the steel giant stuck to its founding ideals, principles and basics, with respect to fellow human beings and fulfillment of its social obligations, making the steel mill, a top steel maker with the highest competitive edge in the world.
Lee, however, said POSCO would continue to have challenges ahead and it plans to turn out high value-added steel products and make investments in regions in BRICs countries. POSCO officials said some sharp questions were asked during a question and answer session following the speech focused on iron ore supply and environmental problems, all hurting the competitive strength of POSCO.
About 300 students and professors attended the speech session at the famous Chinese university in Beijing. nw