Call for Ethical Management

POSCO E & C attempts to build healthy image as part of its reform move

POSCO Engineering and Construction Co., a construction arm of POSCO, targets 3.9 trillion won in orders and 3.5 trillion won in sales for this year. The order target was reduced from the previous year, reflecting somewhat less vibrant prospects for the construction market this year, the company announced recently.
The company plans to focus its business strategies on project-centered construction market and SOC-centered civil engineering markets to secure profitability. It also looks to overseas project orders to expand its business, relying on experienced plant construction knowledge.
POSCO E & C drew up three major strategies for this year under the management ideal of "Firm Building of Healthy Image of POSCO Construction."The first one is to make this year, the initial year for establishing a powerful ethical management practice, as it is the root of modern management during this day and age. To achieve the ideal target, the company will have its departments find their weaknesses in carrying out this style of management and autonomously implement the management by each department or section under a program to be developed later. The company will provide educational programs to its cooperative firms to have them join the movement. The company will also introduce ethical management educational programs tailored for cyber education and business characteristics.
The second one is advancing its management system. The company plans to set up the PI system as early as possible, and move on to promoting the second stage of the PI system and prepare for the introduction of the Six Sigma program. The PI system was created at the cost of 21 billion won with the mobilization of 54,480 people to have the program launched from January 1 of this year. The company is also committed to build up a risk management system to make systematic checks on risk factors in large-scale overseas plant projects in particular, based on a stage-by-stage check up list of risk factors. The company wants to make sure that it is ready for many large plant construction projects to be on its way from overseas building markets this year.
POSCO E & C is also ready to allow global outsourcing as much as possible to boost its competitiveness in costs to help the Indian steelwork project being undertaken by POSCO to be a great success. The company also plans to strengthen its activities on quality and safety management to develop a safety management system without an inch of mistakes with 100 percent customer satisfaction and operations.
Third, the company is set to push its strategic business sectors this year with the domestic construction market about to shake off sluggish tone and try to discover growth sectors. It plans to cope with any changes in the market with flexibility and active plans to follow the need for such moves. The company also will try to secure large project orders such as those for steel production, power plants, and civil engineering to secure a strategic base overseas, along with its operation in Southeast Asia to win development projects.
The company also plans to secure large public projects in the country including those related to turning Chungju into a corporate city and those related to civil engineering and environment sectors. With regard to the Songdo project, the company will promote the second financing successfully and launch the construction of an international school, the Central Park and other key facilities in the project as early as possible.
In the meantime, POSCO Construction secured an order to build a steel plant in Iran worth $3.3 billion. The projected mini-mill plant will be built in the Sirjan Special Economic Zone in the Kerman state in Iran with the annual capacity to produce 740,000 tons of billet on a turnkey basis. The contract for the project took place in Seoul with POSCO E & C President Han Soo-yong and President Borhan of the Samangan Steel Industries Co. attending the signing ceremony. The project is targeted to be completed in May 2009. nw

President Han Soo-yong of POSCO Engineering and Construction Co.