POSCO – Company of the Month – February 2021

Company name: POSCO

Founder: Park Tae-Joon

Year: 1968

Total Assets:

Revenue: US$ 60.87 billion

Net Income: US$ 3.22 billion

Country:  South Korea

Headquarter: Pohang, South Korea

Industry: Steel

Webpage: www.posco.co.kr

Number of employees: 29,648

POSCO, previously Pohang Iron and Steel Company Ltd., is among the world’s main steel producers. The business enterprise manufactures a yearly kind of 26 million lots of hot- and cold-rolled steel merchandise, together with steel coil, plate, cord rod, electric sheets, and stainless steel. Approximately 72% of POSCO’s steel stays in Korea, to be used in that country’s shipbuilding, automotive, and home equipment industries, at the same time as the relaxation is exported to a few 60 countries.

POSCO additionally operates several subsidiaries and joint ventures throughout the world. Like different steel producers, POSCO struggled in the course of the Asian financial disaster of the past due 1990s. Since then, the business enterprise has targeted on constructing partnerships with different worldwide steel companies (together with its as soon as arch-nemesis Nippon Steel Corporation), improved its services of price-delivered steel merchandise, and subsidized out of non performing operations and joint ventures. POSCO is likewise quickly increasing in China.

POSCO is engaged in the manufacturing of steel merchandise. It operates via Steel, Engineering and Construction, and Trading segments. The Steel phase produces cold rolled, hot rolled, and stains much less steel merchandise, plates, cord rods, and silicon steel sheets. The Engineering and Construction phase consists of planning, designing, and production of business plants, civil engineering projects, and business and buildings. The Trading phase exports and imports steel merchandise and uncooked substances. The business enterprise was founded on April 1, 1968, and is founded in Pohang, South Korea.

With the sturdy aid of Korean President Chung Hee Park, the chairman of Korean Tungsten Mining Company, former Major General Tae Chun Park, spearheaded the 2nd try and collected a worldwide monetary bundle to construct an included steel mill. This scheme, to construct a plant able to generate 600,000 tons of crude steel according to year, becomes elaborated by a consortium of 7 Western steelmakers, referred to as Korea International Steel Associates (KISA).

In October 1967, an agreement among KISA and the Korean authorities stipulated that KISA might boost a worldwide mortgage via means of 1969, and the whole included mill by 1972. Costs had been envisioned at $100 million. The working business enterprise, Pohang Iron and Steel, became integrated in 1968. For a maximum of its history, however, Pohang becomes generally called POSCO. Reflecting this reality, the business enterprise officially followed that name in 2002.

It becomes a part of the Korean development strategy to discover the brand new plant as a long way as feasible from Seoul, to create business facilities in the course of the country. Tae Chun Park and the authority’s ministry settled on Pohang in the Kyongsangnamdo province as a location. When production commenced in 1970, it became carefully supervised by Tae Chun Park, who now no longer simply insisted that providers meet closing dates, however additionally, in a few cases, elevated closing dates and insisted that they be met. When the first phase of production became finished in 1973, a month beforehand of schedule, the fundamental plant consisted of a blast furnace and steel converters. These had capacities of 949,000 and 1,000,000 tons, respectively. The plant had a foundry pig iron furnace, with a manufacturing potential of 150,000 lots, in addition to a blooming and slabbing mill, billet mill, and a plate and hot rolling mill. This plant reached complete manufacturing inside 4 months in preference to the minimum of one year the Japanese steelmakers had anticipated.

While production of the primary section was going on, Koreans had been skilled abroad, mainly in Japan, to take over a number of the technological paintings worried in working the mill. They worked along with their Japanese opposite numbers in production and working, gaining precious experience. As a result, in the next expansion, the quantity of the working era that needed to be delivered in from out of doors progressively decreased.

POSCO became the world’s main steel business enterprise in 1998 based on crude steel manufacturing via non-stop efforts to boom facility performance and productivity and set up an included virtual machine via an enterprise transformation in 1999 reorganizing all work techniques from purchase, manufacturing to income.

Privatized in 2000, POSCO commenced steelworks production in Indonesia and India to enlarge manufacturing bases in foreign places. Global management has been bolstered by growing progressive technology inclusive of FINEX and poStrip, foreign places funding improved to steady strong uncooked substances supply, and the ratio of the excessive price delivered strategic product income is quickly growing as well.

POSCO is likewise constantly putting efforts into making company governance obvious and innovating POSCO’s precise company culture. Going a step further, POSCO is enjoying its duty as a company citizen, now no longer simply specializing in financial profitability, however additionally striving for sustainable control this is balanced and harmonized with environmental soundness and social duty.

POSCO has created the exquisite from not anything with a tough spirit and electricity to do so to conquer limits and led Korea’s steel enterprise as much as this day. With all POSCO Family companies, POSCO will keep growing to achieve ‘Global Top 100, 200 Trillion Sales’ by 2020 and emerge as a main worldwide business enterprise.