POSCO chairman calls for changes in steel industry
POSCO Chairman Choi Jeong-woo gives a keynote speech during the online conference “Steel Success Strategies” hosted by World Steel Dynamics, Tuesday. / Courtesy of POSCO
By Kim Jae-heun
POSCO Chairman Choi Jeong-woo said his company needs to prepare for a paradigm shift in car making, suggesting “new mobility” as a mega-trend in the steel industry.
Choi gave a keynote speech Tuesday during World Steel Dynamics' online conference, Steel Success Strategies. His topic was “Post-COVID19 Megatrends: A New Decade.”
During his 25-minute English address, Choi shared his outlook for the global steel industry amid the COVID-19 pandemic, and ongoing economic and social changes.
“In the future, steel will still be the most important material in improving people's quality of life,” Choi said. The chairman picked five keywords as the mega-trends of the industry: mobility, urbanization, digitization, carbon-neutral and nationalization.
In preparation for a time of new mobility, Choi said the steel industry will have to cope with the paradigm shift in the auto industry and develop ultra-light but high-strength materials.
He also stressed that the industry should focus on developing high-performance and multi-functional eco-friendly materials as demand for construction steel is increasing steadily due to urbanization and the effects of natural disasters, including the fine-dust problem.
Regarding digitization, Choi said “digital twin steel mills” should be established where optimal facilities and processes are controlled through real-time simulation based on steel mill facilities and process data.
The chairman said that to neutralize carbon, the industry should concentrate on utilizing carbon dioxide and byproducts created during steel manufacturing processes, and in the longer term, companies should be able to produce steel using hydrogen.
Choi talked about POSCO's strategy to cope with the new trends.
“POSCO is leading new mobility with its secondary battery material business and various uses of composite materials,” he said. “We are also pursuing the value of co-prosperity with construction companies through the premium steel building material brand Innobilt.”
Last year, POSCO's smart factory was selected as exemplary by the World Economic Forum. However, Choi said the company is working to improve it further.
At the end of his address, Choi suggested pushing the “Green Steel Initiative,” in which steelmakers collaborate and share know-how in reducing carbon.
Meanwhile, POSCO has been selected as the world's most influential steelmaker for the 11th consecutive year. Despite a slump in the market because of COVID-19 and declining demand for steel, the company managed to rank No.1 for its efforts in reducing processing costs and adopting world-class technologies.