S&P Upgrades POSCO’s Outlook to “Stable”

S&P Upgrades POSCO’s Outlook to “Stable”

On February 16, international credit rating agency Standard & Poor’s (S&P) revised its outlook for POSCO’s BBB-plus credit rating from “negative” to “stable.” S&P forecast that POSCO would maintain its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) at 20%, which is higher than that of its global competitors. This is, in large part, a result of improved performance in sales (due to the increased sales of high valued-added products), its excellent operating efficiency, and a decrease in the oversupply of steel in the region. S&P added that POSCO is expected to maintain its adjusted debt-to-EBITDA ratio at 2.5 – 3.0 over the next two years by creating a stable free cash flow and continuously reducing borrowings. As a result,...

POSCO Increases Investments in the Cathode Materials Business

POSCO Increases Investments in the Cathode Materials Business

On February 10, POSCO CEO Ohjoon Kwon visited POSCO ESM’s (POSCO Energy Storage Materials) cathode materials factory located in Gumi, South Korea, to personally inspect the production status and shipping processes. Since his nomination to serve a second term as POSCO CEO, Ohjoon Kwon has shown his commitment to strengthen and reinforce POSCO’s non-steel business ventures.     POSCO ESM produces cathode materials, which are essential for the manufacturing of secondary batteries for portable IT devices such as electric vehicles, laptops, and cell phones. Since last month, it succeeded in mass-producing ‘PG-NCM’ (POSCO Gradient Nickel Cobalt Manganese), the high-capacity cathode material for low-speed electric vehicles.* They have also been supplying these materials to LG Chem. Presently, POSCO ESM is focused...

As several others stand by, POSCO CEO Ohjoon Kwon holds a clump of lithium carbonate at the PosLX plant opening.

POSCO Opens its First Lithium Production Plant for Battery Manufacturing

On February 7, POSCO held a ceremony to celebrate the completion of its lithium extraction plant (PosLX). The PosLX Plant is expected to produce 2,500 tons of lithium carbonate per year – enough to manufacture about 70 million laptop batteries. This output will supply POSCO’s battery making partners LG Chem and Samsung SDI, as well as POSCO ESM, a subsidiary that produces cathodes for secondary batteries.     “Our vision is what propelled us to keep going in spite of many difficulties and limitations,” POSCO CEO Ohjoon Kwon said. “We plan to continue differentiating ourselves in the energy material business with lithium, high purity nickel, and positive electrode materials.” Jong-joo Kim, a director at the Ministry of Trade, Industry and...

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Ohjoon Kwon Nominated as POSCO’s CEO for Another 3-Year Term

On January 9th, POSCO CEO Ohjoon Kwon announced his intention to continue serving as CEO. POSCO’s board of directors assembled a committee consisting of six directors in order to conduct a review. Members analyzed Kwon’s performance through a series of interviews with various stakeholders inside and outside the company, including investors, employee representatives, and former CEOs. As part of the review, Kwon also presented his future plans and strategies to address the changing tides of the industry. During the review, committee members took note of how Kwon strengthened the company’s corporate structure which he initiated through extensive restructuring, increased the company’s profitability and gave the Korean steel industry a more competitive edge. In fact, from 2013-2014, POSCO’s operating profit increased...

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POSCO’s 2016 Operating Profit Up 18% Year-On-Year

At a company briefing session on January 25, 2017, POSCO announced that it had recorded consolidated sales of KRW 53.835 trillion and a consolidated operating profit of KRW 2.8443 trillion in 2016. POSCO Group’s consolidated sales have declined year-on-year due to a sluggish domestic market, unfavorable overseas market conditions, and a decrease in the number of subsidiaries due to group restructuring. However, the group’s consolidated operating profit increased by 18% year-on-year thanks to a significant improvement in profits in the overseas steel sector. In particular, after POSCO’s overseas steel subsidiaries showed a combined operating deficit of KRW 429.9 billion in 2015, they managed to achieve a combined operating profit of KRW 218.2 billion in 2016 due to increased sales of...

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POSCO Named as One of the World’s Most Sustainable Companies

POSCO was selected as the 35th most sustainable company in the world by Toronto-based magazine and research firm Corporate Knights, who released “The Global 100,” the 13th annual listing of the most sustainable corporations in the world. The announcement, made at the World Economic Forum in Davos, Switzerland, marks the third year in a row that POCSO has received such a distinction. POSCO was also the only steelmaker to have been listed. Using publicly available data, Corporate Knights examined about 4,000 companies with a market value of at least $2 billion. Their methodology looked at 14 key performance indicators (KPIs) covering environmental, social, and financial performance metrics. KPIs included energy efficiency, greenhouse gas emissions management, atmospheric environment management, water resources...

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POSCO’s Magnesium Alloy Sheets Used in LG’s Ultra-Light ‘Gram’

POSCO has been working in close cooperation with LG Electronics, which launched the “Gram” in 2014, an ultra-light laptop weighing less than 1kg. Since the Gram’s development stages, POSCO has supplied LG Electronics with optimal exterior magnesium materials.   In 2015, POSCO developed the ‘E-Form’ magnesium alloy, which significantly increases magnesium’s ability to be molded at room temperature (magnesium is known to have poor forming ability at low temperatures). The alloy was applied to the bottom of the Gram 14-inch and 15-inch. Instead of stopping with the ‘E-Form’ alloy, POSCO continued to make further improvements and rolled out its ‘E-Form Plus’ alloy which demonstrated improved formability. LG Electronics incorporated the use of the alloy into the 13, 14, and 15-inch...

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POSCO China Wins Corporate CSR Award

POSCO China was awarded the Corporate CSR Award at the “China CSR 100 Forum” for its social responsibility programs in 2016. POSCO China was the only non-Chinese company awarded for their CSR efforts. The event was held on January 7, 2017, and attended by many prominent government officials, major media, and leading corporations in China. The event was sponsored by the CSR Research Center of the Chinese Academy of Social Science – China’s most authoritative CSR evaluation agency. They evaluate corporate social responsibility and social contribution activities, releasing a corporate public interest development index and a CSR development index each year. In addition, on January 6, POSCO China picked up the Educational Public Service Medal from the Chinese Enterprise Development...

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POSCO Humans Selected as Innovation Leader for Sustainable Solar Power Development

POSCO Humans was selected as one of the top 11 leaders in sustainable solar innovation in 2017 by “Solar Today.” This evaluation was designed to measure the current status of the sector and also to see where it is headed. LG Electronics, LS Industrial Systems and Hanwha Q CELLS were selected along with POSCO Humans.   POSCO Humans started its solar power business in 2013 with Korea Water Resources Corporation in order to provide a framing system for a floating solar power system. Currently, the company is carrying out projects in the structural and EPC sectors. POSCO Humans received excellent evaluations for its steel structures that were built for solar facility installations, the use of PosMAC materials for solar power...

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POSCO Group Receives Awards for Social Contribution in SE Asia

The POSCO Group took home several Corporate Social Responsibility (CSR) awards for its contribution to local communities in Vietnam, Myanmar and Indonesia. For global companies it is often not easy to build successful CSR programs overseas due to differences in cultures, customs, and laws. However, the POSCO Group is working to form strong relationships with local communities near its offices and plants by being attentive to the local issues and actively working to find solutions together with the communities.   POSCO Vietnam helps improve homes with the POSCO Steel Village Since 2009, POSCO Vietnam has been working to understand the needs of the local communities near its plant. By combining the needs of the community with the capabilities of POSCO and...

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