Steelmaker Aims High

Chairman Lee: POSCO to be among top 3 in the world by 2018

POSCO celebrated its 40th anniversary with a pledge to generate 100 trillion won in total annual sales from steel and energy products by 2018 with an annual growth rate of 10 percent.
Chairman Lee Ku-taek of the steel giant said now is the time for POSCO to make inroads into the world steel market as it prepares for the next 40 years. The steel mill will be able to produce 50 million tons of steel annually in 2018, along with new business operations on the energy side including fuel batteries.
POSCO plans to generate 70 trillion won in sales of steel products by 2018, which means it has to double the 34 trillion won achieved last year.
The POSCO chairman said the steel giant is looking into building steel production bases in the United States and Europe, regions that have been neglected by the steelmaker so far. At the same time, the company will strengthen its presence in India and the Middle East, its second growth base under its long term vision, "Global Big 3 and top 3,"designed to make Korea an Asian steel business hub.
POSCO will be able to turn out 40 million tons of steel at home and 10 million tons at its overseas steel plants.
Honorary POSCO chairman and founder of the steel giant Park Tae-joon recalled that it was the late President Park Chung-hee who instructed him to lead the project to build POSCO. He said without the late president, the project would not have gotten off the ground. He said he alone agreed with the need to build the steel work, although many were opposed to the idea. When the late Park gave him the responsibility to carry out the project, he felt his shoulders so heavy, adding that the pictures of him then looked so grim all the time.
He said the nation's priority is still making economic progress. He said it is fortunate that the government is wll aware of it and tries its best.
In order to be among the top three steelmakers in the world, the Korean steelmaker plans to reform its management structure and speed up the development of steel production technology.
Lee also said the steel giant will have to foster the growth of its non-steel businesses including energy and construction, among others. The annual sales for the non-steel sectors will reach 30 trillion won by 2018, up from 5.3 trillion won now.
In the energy sector, POSCO plans to beef up its commercial energy production capacity and management capacity for LNG terminals, in addition to the development of its fuel battery business. It will also strengthen its construction affiliate POSCON to engaged in overseas plant construction projects.
On taking over Daewoo Shipyard, Chairman Lee said the company is waiting for the announcement of the public bidding date for the shipyard, although he was evasive about whether the steelmaker will enter the bidding.
Among its overseas concerns, the Indian venture is being delayed due to problems related to mining rights and the purchase of land, but there is are no serious barriers, he said. A survey has not yet been completed in Vietnam for building a steel plant and negotiations are being conducted with the Vietnamese government.
It could be easier than expected, he said. Lee added that POSCO will go for M&As with foreign steelmakers if the chances are there and conditions are right.
POSCO's affiliate POSCON has succeeded in localizing the technologies for the production of a fuel battery, 'POS-BOP1,'which is able to generate 300 kw of power. The development was celebrated in a ceremony to launch the generation of power at the POSCON fuel battery power plant on March 13.
The 'POS-BOP1'is equipped with the Balance of Plant that produced the Molten Carbonate Fuel Cell and the BOP, was developed for the first time in Korea. Korea previously had to import all of the molten carbonate fuel cells from FCE Co. of the United States.
POSCON has been able to localize the BOP technology in just three months from its transfer last year from FCE Co. including design, assembly and installation.
In March of last year, the company successfully tested a fuel battery system that converts
energy obtained from a chemical reaction into electricity and secured its stability. 'POS-BOP1'will be produced at a fuel battery plant to be completed in August and supplied through POSCOPOWER, another affiliate of POSCO, from the end of this year at the earliest.
POSCON will now try to jointly develop a 2.4mw fuel battery system with FCE now that it has secured the technology for assembly that allows fuel supplied by a 300 kw-class MBOP to be transferred to stack.
In the meantime, POSCO is building a fuel battery plant in the backyard of the Youngil Bay Industrial Complex in Youngil, North Gyeongsang Province. nw

Founder and honorary chairman of POSCO
Park Tae-joon(photo above)
Chairman Lee Ku-taek, right, hands a plaque to founder and honorary chairman Park Tae-joon for commemoration of his role in building POSCO.(photo left)

Chairman and CEO Lee Ku-taek of POSCO.

POSCO officials and staff celebrate the steelmaker's 40th anniversary on April 1 in an auditorium at its Pohang complex. Standing in front row are Chairman and CEO Lee Ku-taek,and founder and honorary chairman Park Tae-joon.

Officials and staff celebrate the operation of POSCO's blast furnace on June 9, 1973 with then chairman Park Tae-joon among them.