POSCO
Encyclopedia
POSCO is a multinational
steel
-making company headquartered in Pohang
, South Korea
. It is the world's third-largest steelmaker by market value and the most profitable Asia-based steelmaker.
POSCO currently operates two steel mill
s in South Korea, in Pohang
and Gwangyang
. In addition, POSCO operates a joint venture
with U.S. Steel
, USS-POSCO, which is located in Pittsburg, California
.
With the strong Korean shipbuilding
and automotive industry
dependent on POSCO for steel
, it has been seen as the bedrock of Korea's industrial development over the past 40 years.
's administration concluded that self-sufficiency
in steel and the construction of an integrated steelworks were essential to economic development. Since South Korea had not possessed a modern steel plant
prior to 1968, many foreign and domestic businesses were skeptical of Seoul
's decision to invest so heavily in developing its own industry. Despite the skepticism, under the lead of Park Tae-joon, then TaeguTec
president, POSCO was established as a joint venture between the Korean Government
and TaeguTec
. It began production in 1972, just four years after the company's inauguration in April 1968 with thirty-nine employees.
Japan
provided the money for the construction of the initial plant, following an agreement made at the Third South Korea-Japan Ministerial Meeting in 1969. Financing included US$73.7 million in government grants
and loan
s, US$50 million in credit
from the Export-Import Bank of Japan
, and technical assistance from Nippon Steel
and other corporations. This cooperation was one consequence of the normalization of relations with Japan
in 1965 and reflected the view of the government of Japan as noted in the Nixon
-Sato
communique of November 21, 1969, that "the national security
of the Republic of Korea is essential to the security of Japan."
products in 1972 and focused its sales policies on the domestic market to improve steel self-sufficiency at home. It made special efforts to supply quality iron
and steel
to related domestic companies at below export
price to strengthen their international competitiveness.
POSCO produced 6.2 million tons of raw steel in 1980, recording a 13% increase over the previous year, and was one of the few exceptions when almost all areas of the Korean economy were in economic depression. Domestic industries absorbed POSCO's major products such as automobile and home appliance manufacturers consuming hot rolled products, shipbuilding
and construction
and engineering
companies consuming medium plates, and electric motor
and transformer
manufacturers consuming electrical sheets. Some over-produced products were exported to foreign countries but the significant import
of sections for construction left Korea as a net importer. Globally, POSCO was already the most efficient steel producer in certain products.
By the late 1980s POSCO's growth had been immense. It was the fifth biggest steel company in the world, with an annual production approaching 12 million tons worth 3 trillion won
. POSCO's continued to expand productivity
and size at a time when the steel industries of the United States
and Japan
were declining. POSCO completed its second-phase mill at Gwangyang
in August 1988. A third-phase mill completed in 1992 further increased crude steel production to a total output of approximately 17.2 million tons a year. In terms of productivity, POSCO was the world's best steel manufacturer throughout the late 1980s and also was at the top in terms of facilities.
Pohang, previously a fishing
port whose major industry was processing fish
and marine
products, became a major industrial center with almost 520,000 people. In addition to the huge integrated steel mill
, Pohang
became an industrial complex housing companies that manufacture finished steel products of raw materials provided.
accelerated in 1993 when POSCO's president
and founder, Park Tae-Joon, who had wielded absolute managerial authority for more than 25 years, resigned.
These changes were not without controversy however. Park Tae-Joon was ousted under the Kim Young-sam
government for alleged slush fund
building and money laundering, which was later proven to be false, and went into "voluntary exile" in Japan
. Most of the top management under him at the time were also fired. After the inauguration of the Kim Dae-Jung government and Park's rehabilitation and climb to power, most of these former managers were returned to their previous posts at the state owned steel maker. Then POSCO chairman Ryu Sang-bu and president Lee Ku-taek, and POSCO Development chairman Park Doo-pyo and managing director Cho Yong-kyong, all received support from Park who later went on to become the Prime Minister of Korea.
With the change in leadership—from Park Tae-Joon to Ryu-Sang Bu, POSCO increased decentralization
and diversification. POSCO's management emphasized greater flexibility
, autonomy
, and consensual decision-making processes. The chairman also moved to devolve more autonomy
to the profit centres and changing from a strictly hierarchical organizational structure
to one based on teams.
In July 1994, POSCO created two subsidiary companies, POSTEEL and POSTRADE. POSTEEL is the domestic sales and service arm of the company, while POSTRADE handles international trading of POSCO products. Both subsidiaries commenced full operation in September 1994, with all international POSCO affiliates transferred to POSTRADE by the end of that year. The landmark Posteel Tower on Tehran Street
, in Seoul's Gangnam district
(not to be confused with the POSCO Center, also on Tehran Street) was completed in 2003.
government-owned corporation
s. The government planned to retain a majority share of the stock
; initial reports in the South Korean press in 1998 indicated that the sale of public shares was going slower than anticipated. However, the administration led by Kim Young Sam changed the initial policy direction of privatization
of POSCO and decided not to sell government-owned stock to keep it as a government investment enterprise.
But, the Kim Dae Jung
administration following the Kim Young Sam administration listed privatization
of public enterprise
as a high priority policy in economic policy
agenda to implement mainly because of outbreak of the economic crisis. The new administration decided to privatize
POSCO and by 1998, the South Korean government had reduced its ownership
of shares in POSCO to less than 20%, and more than 50% of the shares in POSCO were in the hands of foreign investors. In 2000, full privatization
of POSCO was completed.
process, new Chairman Lee Ku-Taek began efforts to introduce a professional management
and governance
system of global standards for POSCO. Under the new governance system, management made accountability
to shareholders a priority. POSCO also introduced a new performance-based evaluation and compensation system. Throughout most of its privatization
drive, POSCO increased its revenue
and business profit
. Thanks to robust demand
at home and in China
, POSCO recorded the largest profits in the global steel industry in 2004. Net earnings
from POSCO's array of steel products - used in everything from screw
s to skyscraper
s - shot up 80% to $1.66 billion in 2004 from the previous year.
With increasing global competition, POSCO looked to China
and India
for new opportunities. South Korean wage
s were too high to support a whole range of activities and POSCO looked elsewhere for new projects while keeping the areas where they have a comparative advantage
in South Korea
. By 2006, POSCO had 26 subsidiaries
and invested over $2.4 billion in fresh investment
on mainland China
, especially in galvanized
and stainless steel
to supply global auto
and appliance makers that have opened plants there. In 2006, POSCO started operating the Zhangjiagang Pohang Stainless Steel(ZPSS) steel mill
capable of producing 600,000 ton
s of stainless steel
and hot-rolled products annually in China’s Jiangsu
Province. As a result, POSCO became the first foreign firm operating an integrated stainless steel
mill in China
, handling the entire production process from smelting iron ore to finished products, including the cold rolled stainless plant it already operates.
with the State of Orissa
in India
. Under the agreement, POSCO plans to invest US$12 billion to construct a plant with four blast furnace
s, an electricity plant, housing, and an annual production capacity of 12 million ton
s of steel
, which is slated to start production in 2010. The project, which would start with a 3 million ton
ne capacity initially, would fetch revenue
for the government to the tune of Rs
700 crore
to Rs 800 crore (Rs 7-8 billion) annually. It would also provide direct employment to 13,000 people and ensure indirect employment for another 35,000. The Orissa
State government also promised to provide a total of 600 million tons of iron sources, and will allow POSCO to use iron ore from these sources over the next 30 years. If the project goes ahead, it will be the single largest foreign direct investment
in India
as well as being the world's biggest greenfield
steel plant ever.
However, from 2005 till date (as of August 7, 2010), the India project has not been able to proceed due to strong opposition from the local residents in the area proposed to be given for the steel plant. There have been allegations that the federal and State governments have been illegally trying to take lands and forests for the project, in violation of the Forest Rights Act. There have also been claims that the project will only benefit the company while displacing more people than it employs, damaging the environment and taking India's mineral resources at a very low price.
opportunities in other developing countries
such as Vietnam
and Mexico
. It was announced in August 2006 that POSCO will build a large-scale steel mill
in southern Vietnam
. POSCO plans to build the US$1 billion plant in two phases for hot-rolled and cold-rolled products by 2012. When completed, the mill is expected to produce three-million ton
s of steel products annually. Posco also plans to build a $250 million plant in the city of Altamira
, Mexico
, to produce 400,000 tons of galvanized steel sheet a year for automaker
s . The venture
will be Posco's first wholly owned steel-plate plant in North America
. Posco plans to begin construction
in early 2008, and start operations in 2009, producing galvanized
and galvannealed
steel.
On June 30, 2006, POSCO completed the construction of its sixth continuous galvanizing line (CGL) at its Gwangyang
mill in the South Jeolla Province
. With this new addition, POSCO becomes the no. 2 producer of sheet-steel just behind ArcelorMittal.
In early 2007, Warren Buffett
's Berkshire Hathaway
purchased a 4% stake in POSCO.
, planning
, and finance
s of the steelworks at Pohang
and Gwangyang
. The construction of POSCO headquarters
at 1 Goedong-dong, Nam-gu, Pohang
, was completed on April 1, 1987, and has since become a structure that symbolizes the entire company.
Teheran Valley high-tech venture corridor also hosts a wide variety of free cultural programs, events, and exhibitions throughout the year.
through March 2004 - enough to build some 250 million compact car
s. Crude Steel Production (2004) = 12.67 million tons
Gwangyang - Constructed in four phases between September 1982 and October 1992 on land Korea's southern coast
, the nation's second integrated steelworks is among the world's most advanced. Gwangyang focus on manufacturing automotive steel, high-strength structure steel, API line pipe steel, and other strategic product categories. Crude Steel Production (2004) = 16.23 million tons
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
-making company headquartered in Pohang
Pohang
Pohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
. It is the world's third-largest steelmaker by market value and the most profitable Asia-based steelmaker.
POSCO currently operates two steel mill
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
s in South Korea, in Pohang
Pohang
Pohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
and Gwangyang
Gwangyang
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.The city is also home to K-League soccer side Chunnam Dragons....
. In addition, POSCO operates a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with U.S. Steel
U.S. Steel
The United States Steel Corporation , more commonly known as U.S. Steel, is an integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company is the world's tenth largest steel producer ranked by sales...
, USS-POSCO, which is located in Pittsburg, California
Pittsburg, California
Pittsburg is a city located in eastern Contra Costa County, California, the outer portion of the East Bay region of the San Francisco Bay Area. The population was 63,264 at the 2010 census....
.
With the strong Korean shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
and automotive industry
Automotive industry in South Korea
The Korean automobile industry is currently the fifth largest in the world in terms of production volume and the sixth largest in terms of export volume. While its initial operations were merely the assembling of parts imported from Japan and the United States, Korea is today among the most...
dependent on POSCO for steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
, it has been seen as the bedrock of Korea's industrial development over the past 40 years.
1968–1971
In the 1960s, South Korean President Park Chung-heePark Chung-hee
Park Chung-hee was a Republic of Korea Army general and the leader of South Korea from 1961 to 1979. He seized power in a military coup and ruled until his assassination in 1979. He has been credited with the industrialization of the Republic of Korea through export-led growth...
's administration concluded that self-sufficiency
Self-sufficiency
Self-sufficiency refers to the state of not requiring any outside aid, support, or interaction, for survival; it is therefore a type of personal or collective autonomy...
in steel and the construction of an integrated steelworks were essential to economic development. Since South Korea had not possessed a modern steel plant
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
prior to 1968, many foreign and domestic businesses were skeptical of Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
's decision to invest so heavily in developing its own industry. Despite the skepticism, under the lead of Park Tae-joon, then TaeguTec
TaeguTec
TaeguTec Ltd. , formerly known as Korea Tungsten Co. , is a multi-national corporation headquartered in Daegu, Korea. It is the largest cutting tools manufacturer in the Far East, also Korea’s largest manufacturer of tungsten cutting tools and hard metal tools with the only integrated tungsten...
president, POSCO was established as a joint venture between the Korean Government
Government of South Korea
The Government of South Korea is divided into executive, judicial, and legislative branches. The executive and judicial branches operate primarily at the national level, although various ministries in the executive branch also carry out local functions. Local governments are semi-autonomous, and...
and TaeguTec
TaeguTec
TaeguTec Ltd. , formerly known as Korea Tungsten Co. , is a multi-national corporation headquartered in Daegu, Korea. It is the largest cutting tools manufacturer in the Far East, also Korea’s largest manufacturer of tungsten cutting tools and hard metal tools with the only integrated tungsten...
. It began production in 1972, just four years after the company's inauguration in April 1968 with thirty-nine employees.
Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
provided the money for the construction of the initial plant, following an agreement made at the Third South Korea-Japan Ministerial Meeting in 1969. Financing included US$73.7 million in government grants
Grant (money)
Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...
and loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s, US$50 million in credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
from the Export-Import Bank of Japan
Japan Bank for International Cooperation
The , also known by its acronym, JBIC, is a Japanese public financial institution and export credit agency, and was created on October 1, 1999, through the merging of the Japan Export-Import Bank and the Overseas Economic Cooperation Fund ....
, and technical assistance from Nippon Steel
Nippon Steel
, also referred to as , was formed in 1970. Nippon Steel Corporation is the world's 4th largest steel producer by volume.-Early years:Nippon Steel was created by the merger of two giants, Yawata Iron & Steel and Fuji Iron & Steel...
and other corporations. This cooperation was one consequence of the normalization of relations with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
in 1965 and reflected the view of the government of Japan as noted in the Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
-Sato
Eisaku Sato
This article is about the Prime Minister of Japan. For the governor of Fukushima Prefecture of Japan of the same name, see Eisaku Satō ....
communique of November 21, 1969, that "the national security
National security
National security is the requirement to maintain the survival of the state through the use of economic, diplomacy, power projection and political power. The concept developed mostly in the United States of America after World War II...
of the Republic of Korea is essential to the security of Japan."
1972–1992
POSCO first began to sell plateSheet metal
Sheet metal is simply metal formed into thin and flat pieces. It is one of the fundamental forms used in metalworking, and can be cut and bent into a variety of different shapes. Countless everyday objects are constructed of the material...
products in 1972 and focused its sales policies on the domestic market to improve steel self-sufficiency at home. It made special efforts to supply quality iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
to related domestic companies at below export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
price to strengthen their international competitiveness.
POSCO produced 6.2 million tons of raw steel in 1980, recording a 13% increase over the previous year, and was one of the few exceptions when almost all areas of the Korean economy were in economic depression. Domestic industries absorbed POSCO's major products such as automobile and home appliance manufacturers consuming hot rolled products, shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
and construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
and engineering
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
companies consuming medium plates, and electric motor
Electric motor
An electric motor converts electrical energy into mechanical energy.Most electric motors operate through the interaction of magnetic fields and current-carrying conductors to generate force...
and transformer
Transformer
A transformer is a device that transfers electrical energy from one circuit to another through inductively coupled conductors—the transformer's coils. A varying current in the first or primary winding creates a varying magnetic flux in the transformer's core and thus a varying magnetic field...
manufacturers consuming electrical sheets. Some over-produced products were exported to foreign countries but the significant import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
of sections for construction left Korea as a net importer. Globally, POSCO was already the most efficient steel producer in certain products.
By the late 1980s POSCO's growth had been immense. It was the fifth biggest steel company in the world, with an annual production approaching 12 million tons worth 3 trillion won
South Korean won
The won is the currency of South Korea. A single won is divided into 100 jeon, the monetary subunit. The jeon is no longer used for everyday transactions, and appears only in foreign exchange rates...
. POSCO's continued to expand productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...
and size at a time when the steel industries of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
were declining. POSCO completed its second-phase mill at Gwangyang
Gwangyang
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.The city is also home to K-League soccer side Chunnam Dragons....
in August 1988. A third-phase mill completed in 1992 further increased crude steel production to a total output of approximately 17.2 million tons a year. In terms of productivity, POSCO was the world's best steel manufacturer throughout the late 1980s and also was at the top in terms of facilities.
Pohang, previously a fishing
Fishing industry
The fishing industry includes any industry or activity concerned with taking, culturing, processing, preserving, storing, transporting, marketing or selling fish or fish products....
port whose major industry was processing fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...
and marine
Marine (ocean)
Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...
products, became a major industrial center with almost 520,000 people. In addition to the huge integrated steel mill
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
, Pohang
Pohang
Pohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
became an industrial complex housing companies that manufacture finished steel products of raw materials provided.
1992–1997
Changes in managerial systems and organizational structureOrganizational structure
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its...
accelerated in 1993 when POSCO's president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
and founder, Park Tae-Joon, who had wielded absolute managerial authority for more than 25 years, resigned.
These changes were not without controversy however. Park Tae-Joon was ousted under the Kim Young-sam
Kim Young-sam
Kim Young-sam was a South Korean politician and democratic activist. From 1961, he spent 30 years as South Korea's leader of the opposition, and one of Park Chung-hee's most powerful rivals....
government for alleged slush fund
Slush fund
A slush fund, colloquially, is an auxiliary monetary account or a reserve fund. However, in the context of corrupt dealings, such as those by governments or large corporations, a slush fund can have particular connotations of illegality, illegitimacy, or secrecy in regard to the use of this money...
building and money laundering, which was later proven to be false, and went into "voluntary exile" in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. Most of the top management under him at the time were also fired. After the inauguration of the Kim Dae-Jung government and Park's rehabilitation and climb to power, most of these former managers were returned to their previous posts at the state owned steel maker. Then POSCO chairman Ryu Sang-bu and president Lee Ku-taek, and POSCO Development chairman Park Doo-pyo and managing director Cho Yong-kyong, all received support from Park who later went on to become the Prime Minister of Korea.
With the change in leadership—from Park Tae-Joon to Ryu-Sang Bu, POSCO increased decentralization
Decentralization
__FORCETOC__Decentralization or decentralisation is the process of dispersing decision-making governance closer to the people and/or citizens. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy,...
and diversification. POSCO's management emphasized greater flexibility
Flexibility
Flexibility may refer to:* Flexibility , the distance of motion of a joint, which may be increased by stretching* Flexibility , in the field of engineering systems design, designs that can adapt when external changes occur...
, autonomy
Autonomy
Autonomy is a concept found in moral, political and bioethical philosophy. Within these contexts, it is the capacity of a rational individual to make an informed, un-coerced decision...
, and consensual decision-making processes. The chairman also moved to devolve more autonomy
Responsible autonomy
In the study of organizations and how they work, it is often suggested that there are only three ways of "getting things done": hierarchy, heterarchy and responsible autonomy...
to the profit centres and changing from a strictly hierarchical organizational structure
Organizational structure
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its...
to one based on teams.
In July 1994, POSCO created two subsidiary companies, POSTEEL and POSTRADE. POSTEEL is the domestic sales and service arm of the company, while POSTRADE handles international trading of POSCO products. Both subsidiaries commenced full operation in September 1994, with all international POSCO affiliates transferred to POSTRADE by the end of that year. The landmark Posteel Tower on Tehran Street
Teheranno
Teheranno is a street in the Gangnam district of Seoul, South Korea. It runs from Gangnam Station through Yeoksam-dong and into Samseong-dong...
, in Seoul's Gangnam district
Gangnam District
Gangnam, Seocho and Songpa are three "gu" in Seoul, South Korea, individually known as Gangnam-gu, Seocho-gu and Songpa-gu and often collectively referred to as "Gangnam". These districts are known for their expensive real estate. Media reports frequently refer to this area when they cover stories...
(not to be confused with the POSCO Center, also on Tehran Street) was completed in 2003.
1997–2000
In 1997, Seoul announced that it was going to transform POSCO into a private company in line with the government's new policy of privatizingPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
government-owned corporation
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
s. The government planned to retain a majority share of the stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
; initial reports in the South Korean press in 1998 indicated that the sale of public shares was going slower than anticipated. However, the administration led by Kim Young Sam changed the initial policy direction of privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
of POSCO and decided not to sell government-owned stock to keep it as a government investment enterprise.
But, the Kim Dae Jung
Kim Dae Jung
Kim Dae-jung was President of South Korea from 1998 to 2003, and the 2000 Nobel Peace Prize recipient. He came to be called the "Nelson Mandela of Asia" for his long-standing opposition to authoritarian rule.-Early life:...
administration following the Kim Young Sam administration listed privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
of public enterprise
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
as a high priority policy in economic policy
Economic policy
Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy.Such policies are often...
agenda to implement mainly because of outbreak of the economic crisis. The new administration decided to privatize
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
POSCO and by 1998, the South Korean government had reduced its ownership
Ownership
Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has...
of shares in POSCO to less than 20%, and more than 50% of the shares in POSCO were in the hands of foreign investors. In 2000, full privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
of POSCO was completed.
2001–present
As part of the privatizationPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
process, new Chairman Lee Ku-Taek began efforts to introduce a professional management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
and governance
Governance
Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of management or leadership processes...
system of global standards for POSCO. Under the new governance system, management made accountability
Accountability
Accountability is a concept in ethics and governance with several meanings. It is often used synonymously with such concepts as responsibility, answerability, blameworthiness, liability, and other terms associated with the expectation of account-giving...
to shareholders a priority. POSCO also introduced a new performance-based evaluation and compensation system. Throughout most of its privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
drive, POSCO increased its revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
and business profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
. Thanks to robust demand
Supply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
at home and in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, POSCO recorded the largest profits in the global steel industry in 2004. Net earnings
Earnings
Earnings are the net benefits of a Corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT -- earnings before interest and taxes, EBITDA - earnings before...
from POSCO's array of steel products - used in everything from screw
Screw
A screw, or bolt, is a type of fastener characterized by a helical ridge, known as an external thread or just thread, wrapped around a cylinder. Some screw threads are designed to mate with a complementary thread, known as an internal thread, often in the form of a nut or an object that has the...
s to skyscraper
Skyscraper
A skyscraper is a tall, continuously habitable building of many stories, often designed for office and commercial use. There is no official definition or height above which a building may be classified as a skyscraper...
s - shot up 80% to $1.66 billion in 2004 from the previous year.
With increasing global competition, POSCO looked to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
for new opportunities. South Korean wage
Wage
A wage is a compensation, usually financial, received by workers in exchange for their labor.Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees...
s were too high to support a whole range of activities and POSCO looked elsewhere for new projects while keeping the areas where they have a comparative advantage
Comparative advantage
In economics, the law of comparative advantage says that two countries will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods...
in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
. By 2006, POSCO had 26 subsidiaries
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
and invested over $2.4 billion in fresh investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
on mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
, especially in galvanized
Galvanization
Galvanization is the process of applying a protective zinc coating to steel or iron, in order to prevent rusting. The term is derived from the name of Italian scientist Luigi Galvani....
and stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....
to supply global auto
Automaker
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
and appliance makers that have opened plants there. In 2006, POSCO started operating the Zhangjiagang Pohang Stainless Steel(ZPSS) steel mill
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
capable of producing 600,000 ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
s of stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....
and hot-rolled products annually in China’s Jiangsu
Jiangsu
' is a province of the People's Republic of China, located along the east coast of the country. The name comes from jiang, short for the city of Jiangning , and su, for the city of Suzhou. The abbreviation for this province is "苏" , the second character of its name...
Province. As a result, POSCO became the first foreign firm operating an integrated stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....
mill in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, handling the entire production process from smelting iron ore to finished products, including the cold rolled stainless plant it already operates.
POSCO in India
In June 2005, POSCO signed a memorandum of understandingMemorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
with the State of Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. Under the agreement, POSCO plans to invest US$12 billion to construct a plant with four blast furnace
Blast furnace
A blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally iron.In a blast furnace, fuel and ore and flux are continuously supplied through the top of the furnace, while air is blown into the bottom of the chamber, so that the chemical reactions...
s, an electricity plant, housing, and an annual production capacity of 12 million ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
s of steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
, which is slated to start production in 2010. The project, which would start with a 3 million ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
ne capacity initially, would fetch revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
for the government to the tune of Rs
Rupee
The rupee is the common name for the monetary unit of account in India, Sri Lanka, Nepal, Pakistan, Mauritius, Seychelles, Maldives, and formerly in Burma, and Afghanistan. Historically, the first currency called "rupee" was introduced in the 16th century...
700 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
to Rs 800 crore (Rs 7-8 billion) annually. It would also provide direct employment to 13,000 people and ensure indirect employment for another 35,000. The Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
State government also promised to provide a total of 600 million tons of iron sources, and will allow POSCO to use iron ore from these sources over the next 30 years. If the project goes ahead, it will be the single largest foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
as well as being the world's biggest greenfield
Greenfield project
In many disciplines a greenfield is a project that lacks any constraints imposed by prior work. The analogy is to that of construction on greenfield land where there is no need to remodel or demolish an existing structure...
steel plant ever.
However, from 2005 till date (as of August 7, 2010), the India project has not been able to proceed due to strong opposition from the local residents in the area proposed to be given for the steel plant. There have been allegations that the federal and State governments have been illegally trying to take lands and forests for the project, in violation of the Forest Rights Act. There have also been claims that the project will only benefit the company while displacing more people than it employs, damaging the environment and taking India's mineral resources at a very low price.
POSCO in other developing countries
POSCO have pursued investmentInvestment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
opportunities in other developing countries
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
such as Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
. It was announced in August 2006 that POSCO will build a large-scale steel mill
Steel mill
A steel mill or steelworks is an industrial plant for the manufacture of steel.Steel is an alloy of iron and carbon. It is produced in a two-stage process. First, iron ore is reduced or smelted with coke and limestone in a blast furnace, producing molten iron which is either cast into pig iron or...
in southern Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
. POSCO plans to build the US$1 billion plant in two phases for hot-rolled and cold-rolled products by 2012. When completed, the mill is expected to produce three-million ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
s of steel products annually. Posco also plans to build a $250 million plant in the city of Altamira
Altamira, Tamaulipas
Altamira is a municipality and city in the Mexican state of Tamaulipas. It is located immediately to the north of the municipalities of Tampico and Ciudad Madero, at the southern tip of the state of Tamaulipas, on the Gulf of Mexico. Additionally, it borders the municipalities of González on the...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, to produce 400,000 tons of galvanized steel sheet a year for automaker
Automaker
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
s . The venture
Venture
Venture may refer to:* VENTURE NOTC, the Canadian Naval Officer Training Centre based in CFB Esquimalt, British ColumbiaIn automobiles:* Chevrolet Venture, a General Motors Corporation minivan.* VentureOne, a concept car by Venture Vehicles...
will be Posco's first wholly owned steel-plate plant in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
. Posco plans to begin construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
in early 2008, and start operations in 2009, producing galvanized
Galvanization
Galvanization is the process of applying a protective zinc coating to steel or iron, in order to prevent rusting. The term is derived from the name of Italian scientist Luigi Galvani....
and galvannealed
Galvannealed
Galvannealed or galvanneal is the result from the combined process of galvanizing and annealing to produce specialized sheets of steel. The galvanization is made through the hot-dipping process and gives a very fine greyish matte finish. Galvanneal does not flake off its galvanized coating when...
steel.
On June 30, 2006, POSCO completed the construction of its sixth continuous galvanizing line (CGL) at its Gwangyang
Gwangyang
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.The city is also home to K-League soccer side Chunnam Dragons....
mill in the South Jeolla Province
Jeollanam-do
Jeollanam-do is a province in the southwest of South Korea. The province was formed in 1896 from the southern half of the former Jeolla province, remained a province of Korea until the country's division in 1945, then became part of South Korea...
. With this new addition, POSCO becomes the no. 2 producer of sheet-steel just behind ArcelorMittal.
In early 2007, Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
's Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
purchased a 4% stake in POSCO.
Head Office
POSCO's Headquarters, along with the POSCO Center, form the 'brain' of the company, overseeing major tasks, such as the managementManagement
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, planning
Planning
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior...
, and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
s of the steelworks at Pohang
Pohang
Pohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
and Gwangyang
Gwangyang
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.The city is also home to K-League soccer side Chunnam Dragons....
. The construction of POSCO headquarters
Headquarters
Headquarters denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top of a corporation taking full responsibility managing all business activities...
at 1 Goedong-dong, Nam-gu, Pohang
Pohang
Pohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
, was completed on April 1, 1987, and has since become a structure that symbolizes the entire company.
POSCO Center
Winner of the 1995 Seoul Architectural Award for its progressive combination of modern design and eco-friendly engineering, POSCO Center is regarded as Korea's first state-of-the-art intelligent building. This landmark in the heart of southern Seoul'sGangnam District
Gangnam, Seocho and Songpa are three "gu" in Seoul, South Korea, individually known as Gangnam-gu, Seocho-gu and Songpa-gu and often collectively referred to as "Gangnam". These districts are known for their expensive real estate. Media reports frequently refer to this area when they cover stories...
Teheran Valley high-tech venture corridor also hosts a wide variety of free cultural programs, events, and exhibitions throughout the year.
Pohang and Gwangyang Steelworks
Pohang - Constructed in four phases between April 1970 and February 1981 along Korea's southeast coast, the nation's first integrated steelworks has produced 230 million tons of pig ironPig iron
Pig iron is the intermediate product of smelting iron ore with a high-carbon fuel such as coke, usually with limestone as a flux. Charcoal and anthracite have also been used as fuel...
through March 2004 - enough to build some 250 million compact car
Compact car
A compact car , or small family car , is a classification of cars which are larger than a supermini but smaller than or equal to a mid-size car...
s. Crude Steel Production (2004) = 12.67 million tons
Gwangyang - Constructed in four phases between September 1982 and October 1992 on land Korea's southern coast
Gwangyang
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang city is the home of POSCO's Gwangyang Steel Works, the largest facility of its kind in the world.The city is also home to K-League soccer side Chunnam Dragons....
, the nation's second integrated steelworks is among the world's most advanced. Gwangyang focus on manufacturing automotive steel, high-strength structure steel, API line pipe steel, and other strategic product categories. Crude Steel Production (2004) = 16.23 million tons
Subsidiaries
- POSCON
- POSBRO - A WiMAX/WiBro Mobile Internet terminal manufacturer.
- POSDATAPOSDATAPOSDATA is a comprehensive IT service provider, established in 1989 as a subsidiary of steelmaker POSCO. POSDATA delivers products and services to telecommunications and computing companies and is actively focused on creating the ubiquitous network by harnessing technologies of the future,...
- An IT solutions provider - POSCO Engineering & Construction
- POSMEC
Competitors
- ArcelorMittal
- Nippon SteelNippon Steel, also referred to as , was formed in 1970. Nippon Steel Corporation is the world's 4th largest steel producer by volume.-Early years:Nippon Steel was created by the merger of two giants, Yawata Iron & Steel and Fuji Iron & Steel...
- JFE GroupJFE Groupis a corporation headquartered in Tokyo, Japan. It was formed in 2002 by the merger of and . Both companies were major military vessel manufacturers during World War II....
- Nucor Corporation
- Tata SteelTata SteelTata Steel is a multinational steel company headquartered in Jamshedpur, India and part of Tata Group. It is the world's seventh-largest steel company, with an annual crude steel capacity of 31 million tonnes, and the largest private-sector steel company in India measured by domestic production...
- Bhushan SteelBhushan SteelBhushan Steel is the largest manufacturer of auto-grade steel in India and is spending Rs. 260 billion to expand its capacity to 12 million tonnes annually, from the present installed capacity of around one million tonnes.-Financials and management:...
See also
- List of steel producers
- List of South Korean companies
- PohangPohangPohang is a city in North Gyeongsang Province, South Korea, and a main seaport in the Daegu-Gyeongbuk region. The built-up area of Pohang is located on the alluvium of the mouth of the Hyeongsan River...
- Economy of South KoreaEconomy of South KoreaSouth Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by purchasing power parity , identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD...
External links
- posco.com
- Yahoo! Finance page for PKX
- Yahoo! Finance page for 005490.KS
- Posco India
- India environment portal for resources on POSCO
- History of POSCO 1968-2010
- POSCO india wikilink POSCO IndiaPOSCO-India Private Limited is a planned Indian subsidiary of POSCO, an integrated steel producer with headquarters in Korea.POSCO signed a Memorandum of Understanding in June 2005, to incorporate an Indian subsidiary and build a steel plant in Orissa - a state in eastern India...