POSCO ’s Outstanding Steel, Stretching Long and Beyond the Globe

POSCO INSIDE

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The manufacturing field of automobiles, energy, home appliances, electronics is earning spotlight as it is creating value, in the Europe market, which continuously creates new fascinating trends. POSCO has been widely introducing its brand’s value by establishing a cooperation system among Steel Business Headquarters, Pohang and Gwangyang Steel Works, Europe Offices, European Local Processing Centers, Logistics Centers, and performing effective correspondence against European clients’ demand of steel. POSCO shows its global potential by providing competitive steel within the European market, and which captivates its clientele.

Global Automotive Materials Marketing with Volkswagen and More

With the basis of its global production and sales network, POSCO is enhancing automotive flat product sales in the growth area of strategic demand. This year’s automotive flat product sales amount is expected to exceed 8 million tons.

Especially, Volkswagen, a German automobile manufacturer, is solidifying a cooperative relationship by highly evaluating POSCO’s value creation capability that is based on strict quality and time control.

The Volkswagen headquarters in Germany and global Volkswagen factories are improving their automotive material supply and quality stability through POSCO’s global infrastructure. Moreover, Volkswagen is discussing various combined efforts with POSCO for the purpose of vehicle weight reduction and production cost reduction. With a solid basis of trust from European clients like Volkswagen, POSCO is expected to speed up its advancement in the world market.

EVI Activities for the Energy/Offshore Plant Industry

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The energy/offshore plant industry is high in change of risk and difficult to predict. In terms of technology and marketing, a high entry barrier exists because the industry only purchases steel materials from exclusive suppliers with stringent quality certification.

However, various EVI (Early Vendor Involvement) activities has enabled POSCO to form a network in the European energy/offshore plant industry in a notably rapid pace. For example, POSCO has been developing steel and technology solution with the perspectives of clients and expanding business channels based on the development and constantly seeking for new business opportunities.

Through cooperation of POSCO Steel Business Headquarter, Poyang/Gwangyang Steel Works, the Research Institute of Industrial Science and Technology (RIST) and European offices, POSCO is executing marketing activities and expanding direct business with major European oil companies such as Shell and Saipem. With a basis on solution marketing of quality certification and technology collaboration, POSCO is promoting to advance to the extended market by forming close relationships with major European client companies.

New Renewable Energy Materials Development

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Sales of steels for the new renewable energy industry is another example of POSCO’s effort to expand business in the European market. In May 2012, Siemens and POSCO signed the MOU for cooperation in steel, energy and material field’s business and technology development. They have been discussing a joint promotion approach for steel technology cooperation, new material business and more.

As the general interests in green energy and demand for new renewable energy growth escalate in Europe, Siemens is also increasing its productions for green energy installations such as a wind power generator. In response, POSCO suggested a new type of steel that suits the characteristics of wind power generator materials in the European market. Since this year, POSCO is developing and selling high magnetic non-oriented electrical steel sheet targeting the new renewable energy generator. POSCO is responding preemptively to the client’s request in addition to its product development and supply.

Targeting the Premium Home Appliance Market in Europe

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In the field of display home appliances in the European premium market, Samsung electronics and LG electronics, the global home appliance companies of Korea, are standing at the front line in the local market. Before the companies execute their successful strategies for Europe, POSCO’s preemptive material supply comes first. Especially due to the industry’s fast cycle of new product releases, POSCO predicts the technical transformation of display home appliances and prepare for the prospective demand for steel materials. Accordingly, POSCO is operating with a response strategy to provide future home appliance material.

In 2007, POSCO founded POSCO-PWPC( Poland Wroclaw Processing Center) with LG International Corp. in Poland. Moreover, establishing POSS-SLPC(POSCO SAMSUNG Slovakia Steel Processing Center) with Samsung C&T in Slovakia, POSCO is supporting the display home appliance material for the European market. Currently, Samsung electronics and LG electronics are expanding their influence across Europe. As a stable partner company for materials, POSCO will supply competitive materials and solution.

Client Acquisition through Solution Marketing for STS Clients

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Occupying about 15% of the worldwide demand, Europe is a global STS cold-rolled steel market where its annual demand is about 3 million tons. Especially, Italy and Germany are known as the top two STS markets of Europe. Located in Vallese di Oppeano complex, POSCO-ITPC (Italy Processing Center) is POSCO’s very first STS product processing center established in Europe. The processing ability of the center is about 35 thousand tons per year.

Deviating from previous distribution system through the establishment of POSCO-ITPC, POSCO was able to adopt a system of integrating the global STS production center’s products and selling to the actual demanders in Europe. At the same time, POSCO became capable of high quality processing and Just-In-Time production requested by the European client companies demanding high quality STS.

While executing various marketing activities to procure stable client groups of STS demand in the European market, POSCO-ITPC has obtained more than 140 clients of actual demand after only one year since its foundation. Also, rather than simply providing a cutting service of STS products, POSCO is strategically reinforcing its cooperative relationships by expanding client-oriented solution marketing activities. For example, POSCO is providing combined-processed product service to create added value and high quality processing service for excellent abrasive products. As a result of these efforts, POSCO-ITPC continues to create business profits from January 2014, which is only three months after its operation launch.

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