Value context and insight. lkm@koreatimes.co.kr
POSCO International begins new era as global, eco-friendly enterprise
POSCO International's office in Songdo, Incheon / Courtesy of POSCO International
By Lee Kyung-min
POSCO Group Chairman Choi Jeong-woo
By Lee Kyung-min
POSCO International will become a green business, and raise the market capitalization to 23 trillion won ($17 billion) by 2030 backed by energy, steel among new businesses, the company said Thursday.
It announced its growth strategy and vision with executives and employees in attendance.
The new vision “Green Energy & Global Business Pioneer,” it said, would lead to sustainable growth.
The new vision is encapsulated with the word green. It will fortify the value chain of major businesses and create POSCO group's future growth drivers.
The firm was incorporated into POSCO Group in 2010 and has since expanded its presence.
Examples are gas field operations in Myanmar in 2013, a POSCO P&S merger in 2017 and the establishment of POSCO Mobility Solution in 2020. It merged with POSCO Energy this year.
POSCO International CEO Jeong Tak
POSCO International registered sales and operating profit of 15.6 trillion won and 171.7 billion won in 2010, respectively.
The figures soared to 41.7 trillion won and 1.17 trillion won in 2022.
The 2022 sales figure was the 17th-highest among KOSPI-listed firms. But the market cap remains undervalued at 3.8 trillion won as of 2023. This is barely an improvement from 3.5 trillion won in 2010.
POSCO International CEO Jeong Tak said that reorienting the value of the widely undervalued share prices will be a daunting task.
The firm will fortify the renewable energy sector to advance the group's carbon neutrality drive. An offshore wind power project will be completed by 2027. It will lead the future green energy market with carbon capture and storage (CCS) projects. CCS is a process in which a relatively pure stream of carbon dioxide from industrial sources is separated, treated and transported to a long-term storage location. For example, the carbon dioxide stream that is to be captured can result from burning fossil fuels or biomass projects linked to gas fields.
It will double the sales of green steel materials to 3.9 million tons by 2030, up from 1.81 tons as of 2022.
It will closely manage supply chains to better procure key green steel materials and secondary battery materials.
Green mobility business will be strengthened with the full operation of overseas manufacturing plants in North America, Europe and China.
The food business will be strengthened. It will strengthen agricultural technology. Otherwise known as agrotechnology, the term refers to the use of technology in agriculture, horticulture, and aquaculture with the aim of improving yield, efficiency, and profitability. Agricultural technology can be products, services or applications derived from agriculture that improve various input/output processes.
It will strengthen related global supply chains in Australia, North America and South America.
The firm will identify future growth driver businesses apart from the group's seven major businesses. Included are new renewables.