POSCO (formerly Pohang Iron and Steel Company) is a South Korean steel manufacturer headquartered in Pohang, South Korea. It had an output of 42,000,000 metric tons (41,000,000 long tons; 46,000,000 short tons) of crude steel in 2015, making it the world's sixth-largest steelmaker by this measure.[2] In 2010, it was the world's largest steel manufacturing company by market value.[3] Also, in 2012, it was named as the world's 146th-largest corporation by the Fortune Global 500.[4]
POSCO currently operates two integrated steel mills in South Korea, in Pohang and Gwangyang. POSCO previously operated a joint venture with U.S. Steel, USS-POSCO Industries, in Pittsburg, California, United States, but U.S. Steel acquired full ownership of the facility in February 2020.
History
1968–1971
In the 1960s, South Korean administration concluded that self-sufficiency in steel and the construction of an integrated steelworks were essential to economic development.[5] Since South Korea had not possessed a modern steel plant prior to 1968,[6] many foreign and domestic businesses were skeptical of Republic of Korea Government's decision to invest so heavily in developing its own industry.[5] The Korean government created Pohang Iron and Steel Company, Ltd (POSCO) in 1968 and appointed as president of the mill a competent retired army general and friend of President Park Chung Hee, Park Tae-joon, a man with a track record of having turned around the government-owned Korea Tungsten Company. Construction of the Pohang plant began on April 1, 1970, and was dedicated on July 3, 1973, with an initial annual capacity of 1.03 million metric tons.[7]
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.[8] Financing included US$119 million in government grants and loans,[9][10] US$54 million in credit from the Export-Import Bank of Japan, and technical assistance from Nippon Steel and other corporations.[8][11] 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."[12]
1972–1992
POSCO first began to sell plate 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.[citation needed]
Beginning in 1973, South Korea's government used its National Investment Fund and the Korea Development Bank to invest large amounts of money into what Park Chung-hee's government viewed as the six strategic industries: steel, non-ferrous metals, shipbuilding, industrial machinery, electronics, and petrochemicals.[13]:136 This strategy helped develop companies POSCO and reduced input costs for production in downstream industries as well.[13]:136
POSCO produced 6,200,000t (6,100,000 long tons; 6,800,000 short tons) of raw steel in 1980, recording a 13% increase over the previous year,[citation needed] 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.[citation needed]
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.[citation needed] POSCO 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.[citation needed] 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.[citation needed]
Pohang, previously a fishingport whose major industry was processing fish and marine products, became a major industrial center with almost 520,000 people.[citation needed] In addition to the huge integrated steel mill, Pohang became an industrial complex housing companies that manufacture finished steel products of raw materials provided.
Pohang University of Science and Technology (POSTECH)
POSCO CEO Park Tae-joon was quoted as saying, "You can import coal and machines, but you cannot import talent".[citation needed] Park realized the need for Korea to educate their youth in science and technology to ensure Korea's position in the high technology arena. Park founded the Pohang University of Science and Technology (POSTECH) in 1986 as Korea's first science and technology research-oriented university with the mission to educate young Koreans who can contribute to national prosperity through the advancement in science and technology. In 2012 and 2013, the Times Higher Education ranked POSTECH 1st in their "100 Under 50 Young Universities" rankings.[14]
1992–1997
Changes in managerial systems and organizational structure accelerated in 1993 when POSCO's president and founder, Park Tae-Joon, who had wielded absolute managerial authority for more than 25 years, resigned.
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 centers 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.
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 privatizingstate-owned enterprises. 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.
As part of the privatization 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.[citation needed] Net earnings from POSCO's array of steel products– used in everything from screws to skyscrapers– shot up 80% to $1.66 billion in 2004 from the previous year.[citation needed]
With increasing global competition, POSCO looked to China and India for new opportunities. South Korean wages 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,[citation needed] 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 tons 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. In June 2022, POSCO is temporarily cutting production lines in Pohang plants as thousands of truckers go on a strike for higher pay, causing disrupted cargo transport in the country.[16]
POSCO has maintained its presence in Russia through its local subsidiary, even as the country faces widespread condemnation and international sanctions for its invasion of Ukraine. Operating through its Russian subsidiary, POSCO remains engaged in the Russian market, a decision that has drawn criticism for undermining global efforts to economically isolate Russia. While numerous companies have withdrawn from the Russian market in response to the ongoing war, POSCO's decision to continue operations has sparked significant criticism. Observers argue that its actions contradict global efforts to isolate Russia economically and may be seen as enabling a regime responsible for atrocities and the loss of innocent lives in Ukraine.[17][18][19]
POSCO in India
In June 2005, POSCO signed a memorandum of understanding with the State of Orissa in India. Under the agreement, POSCO plans to invest US$12 billion to construct a plant with four blast furnaces, an electricity plant, housing, and an annual production capacity of 12,000,000 metric tons (12,000,000 long tons; 13,000,000 short tons) of steel, which is slated to start production in 2010.[citation needed][needs update]The project, which would start with a 3,000,000-metric-ton (3,000,000-long-ton; 3,300,000-short-ton) 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.[citation needed] The Odisha 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.[citation needed]
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.[20] 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.[21]
Further, a study [22] undertaken by the Mining Zone Peoples' Solidarity Group,[23] an international research group focused on India, finds evidence of irregularities in dealings with state, bureaucracy and judiciary and questions and debunks the social, economic and environmental claims that the project has made.
The MoU between POSCO and State of Odisha expired in 2010. Following allegations that the ministry had not adhered to Forest Rights Act, Ministry of Environment and Forests (MoEF) set up the N.C. Saxena committee in July 2010 to review the clearance. Despite the committee's report indicating that provisions of the Forest Rights Act had been violated, the MoEF issued final order on January 31, 2011, and gave environment clearance to POSCO. In May 2013, the National Green Tribunal (NGT) halted land acquisition for the POSCO projects. In July 2013, POSCO completed land acquisition despite the order given by NGT. In December 2013, POSCO began construction of a boundary wall around its plant site. In December 2013, the NGT criticised the forest clearance granted by the Union Ministry of Environment and Forests (MoEF) to the proposed steel plant of South Korean steel giant, POSCO, in Odisha.[24]
There have been reports that during protests and land acquisition during Feb - Mar 2013, there has been bombing attack on the resisting villages and naked protest against the police atrocity.[25]
The Central Government of India came out confident on 15 January 2014 that with the renewal of environment clearance, South Korean steel giant POSCO's project in Odisha would take off soon. After a meeting with visiting South Korean Minister of Trade, Industry and Energy Yoon Sang-jick, Mr. Sharma told the media: "So far, 1,700 acres of land — out of 2,718 acres — have been transferred to POSCO and the rest will soon be given." On July 17, 2015, news reported that South Korean steelmaker POSCO may halt a $12 billion US dollar plan agreed with Odisha, India a decade ago due to the delay in regulatory approvals.[26] In 2016, POSCO confirms with National Green Tribunal (NGT) that it will suspend the steel plant project in Odisha, India.[27] POSCO finally exited from this project on March 18, 2017 (Saturday).
On 13 January 2022, the Adani Group announced that it had signed an MoU with POSCO to explore the setting up of an Integrated Steel Mill in Mundra, Gujarat, with an estimated total investment of US$5 billion.[28]
POSCO in other developing countries
POSCO Center-Beijing
POSCO have pursued investment 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.[citation needed] POSCO plans to build the US$1 billion plant in two phases for hot-rolled by the end of 2012 and cold rolled products by the time of December 2009.[29] When completed, the mill is expected to produce three-million tons 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 automakers.[citation needed] The venture will be Posco's first wholly owned steel-plate plant in North America. Posco began construction in early 2008, and started 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 December 2013, the steel plant Krakatau Posco in Cilegon, Indonesia began operation. Its annual production capability is 3 million tons of steel.[33]
POSCO's Headquarters, along with the POSCO Center, form the 'brain' of the company, overseeing major tasks, such as the management, planning, and finances 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.
Pohang and Gwangyang Steelworks
Posco steel mill in Pohang, Korea
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 iron through March 2004 - enough to build some 250 million compact cars. Crude Steel Production (2008) = 13.6 million tons.[35]
Gwangyang Steelworks
Gwangyang - Constructed in four phases between September 1982 and October 1992 on Korea's southern coast, the nation's second integrated steelworks. Gwangyang focus on manufacturing automotive steel, high-strength structure steel, API line pipe steel, and other strategic product categories. Crude Steel Production (2008) = 17.4 million tons.[35]
Pohang, formerly spelled Po-Hang, is the largest city in North Gyeongsang Province, South Korea, with a population of 499,363 as of 2022, bordering the East Sea to the east, Yeongcheon to the west, Gyeongju to the south, and Cheongsong and Yeongdeok to the north.
Gwangyang is a city in South Jeolla Province, South Korea. Gwangyang 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 Classic football side Jeonnam Dragons.
Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group.
SSAB AB, earlier Svenskt Stål AB is a Swedish company, formed in 1978, that specialises in producing steel. The largest shareholders are LKAB and the Government of Finland.
A steel mill or steelworks is an industrial plant for the manufacture of steel. It may be an integrated steel works carrying out all steps of steelmaking from smelting iron ore to rolled product, but may also be a plant where steel semi-finished casting products are made from molten pig iron or from scrap.
Kalinganagar is a planned industrial town in Jajpur district of coastal Odisha, India. Kalinganagar is emerging to be major global hub in steel, power and ancillary products. A large number of steel plants including projects by Jindal Steel, VISA Steel and Tata Steel are in various stages of implementation.
Jindal Steel and Power Limited (JSPL) is an Indian steel company based in New Delhi. JSPL is a part of OP Jindal Group.
An ironworks or iron works is an industrial plant where iron is smelted and where heavy iron and steel products are made. The term is both singular and plural, i.e. the singular of ironworks is ironworks.
Hyundai Steel Co., Ltd, or HSC is a steel making company headquartered in Incheon and Seoul, South Korea, and a member of the Hyundai Motor Group. It manufactures a wide variety of products ranging from H-beams, rail and reinforcing bars, to hot coil, cold-rolled steel, and stainless cold-rolled sheet.
Gerdau is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Colombia, Dominican Republic, Mexico, Peru, United States, Uruguay and Venezuela. Currently, Gerdau has an installed capacity of 26 million metric tons of steel per year and offers steel for the civil construction, automobile, industrial, agricultural and various sectors.
ArcelorMittal S.A. is a Luxembourg-based multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel. ArcelorMittal is the second largest steel producer in the world, with an annual crude steel production of 78 million metric tonnes as of 2022. It is ranked 197th in the 2022 Fortune Global 500 ranking of the world's largest corporations. It employs around 154,000 people and its market capital is $20 billion. The total value of company assets is estimated to be around $94 billion.
Kaiser Steel was a steel company and integrated steel mill near Fontana, California. Industrialist Henry J. Kaiser founded the company on December 1, 1941, and workers fired up the plant's first blast furnace, named "Big Bess" after Kaiser's wife, on December 30, 1942. Then in August 1943, the plant would produce its first steel plate for the Pacific Coast shipbuilding industry amid World War II.
VISA Steel Limited is a mineral and metals company situated in the Kalinganagar industrial complex of Jajpur Odisha, India with a 1.5 million ton integrated special and stainless steel manufacturing plant. VISA Steel has its registered office in Bhubaneswar, corporate office in Kolkata and branch offices across India. A listed company, VISA Steel's shares are traded on the BSE and NSE.
POSCO India Private Limited is an Indian subsidiary of Korean conglomerate POSCO.
POSCO Energy is the largest private energy producer in South Korea. It is a member of the POSCO consortium, and was established in November 1969, in South Korea as the nation's first private electricity supplier. The main businesses are in coal-fired power generation, fuel cells, liquid natural gas (LNG), and off-gas power.
Park Tae-joon was a South Korean business tycoon and politician who briefly served as the 32nd Prime Minister of South Korea in 2000.
Chung Joon-Yang is a South Korean businessman, former POSCO chief executive officer, who presently serves as Chairman of National Academy of Engineering of Korea.
Nippon Steel Corporation is Japan's largest steelmaker, headquartered in Chiyoda-ku, Tokyo. The company has four business segments, including steelmaking, engineering, chemicals, and system solutions. It is the largest producer of crude steel in Japan and the third largest in the world. The company is on the Forbes Global 2000 list, ranked 1971 in 2023. The company is the second incarnation of the Nippon Steel name, following the original Nippon Steel Corporation which was formed from the merger of Yamata Iron & Steel with Fuji Iron & Steel in 1950 and lasted until 2012.
Pohang Space Walk is a walkable sculpture located in Hwanho Park, Buk-gu, Pohang, North Gyeongsang Province, South Korea. It was completed on November 18, 2021 and opened to the public the following day. The original name for the structure was Cloud, and it received its current name before its completion.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
KRW 75.16 trillion (2021) [1] 
