November 27, 2024

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Posco Vice Chairman Kim Hag-dong speaks during a ceremony held at the steel giant's headquarters to announce its new vision, Thursday. (Posco)

Posco Group on Thursday unveiled a new vision titled "Better World with Green Steel" to aggressively ramp up its global steel competitiveness, while upholding environmental, social and corporate governance values.

During a ceremony held to announce Posco's vision at the group's headquarters, attended by some 250 executives and employees, Posco said it aims to post total sales of 100 trillion won ($78 billion) by 2030, while doubling its operating profit margin logged in 2022.

Plans to establish global crude steel production facilities with a total production capacity of 52 million tons, by 2030, were further unveiled.

Posco said it aims to achieve such goals while making sure they achieve carbon neutrality and uphold ESG values.

"Posco will overcome the prevailing opinion that the steel industry produces lots of carbon, and will lead the evolution of the future steel industry while securing the blue ocean sectors, through the convergence of various high-tech technologies," said Vice Chairman Kim Hag-dong during the ceremony.

"For sustainable growth, a new milestone is needed to respond to the changing era," he said.

Specifically, Posco announced it will focus on perfecting its technologies dealing with low-carbon steel.

To aggressively aim for carbon neutrality while ramping up steel competitiveness, the company added it will build HyREX demonstration plants, or plants that utilize Posco's hydrogen reduction steelmaking technologies, as well as manufacture combined blowing converters. Combined blowing converters allow for top-blown oxygen and inert gas injected through the converter bottom to gain additional heat in the blast furnace.

The company added it will expand the use of low-carbon hot briquetted iron, a critical raw material for the adoption of electric arc furnaces, to aggressively aim for carbon neutrality.

Posco also said that by operating low-carbon steel production systems in electric furnaces starting 2026 in its Gwangyang steel plant, it plans to achieve its carbon neutrality goals by 2030 and complete the establishment of a supply system for 10 million tons of low-carbon products.

Posco added it plans to focus on developing next-generation eco-friendly products in a variety of rising sectors including New Mobility, Green Energy, and Smart Infrastructure.

For example, Posco said it will build additional plants that develop Hyper NO, Posco's brand for non-oriented electrical steel, a key material for the motors of electric cars, in Korea and North America.

In the overseas market, Posco said it plans to establish additional production bases centering on Indonesia, India and North America.

Posco said it plans on more than doubling its overseas crude steel production capacity by 2030 to solidify its position as a global steel company. As of 2022, Posco's overseas crude steel production capacity stands at 5 million tons per year, according to Posco.

Specifically, in Indonesia, Posco said it plans to establish a car steel plate production facility and further its reach into the Southeast Asian market.

In India, Posco said it plans to build a low-carbon production base and with Posco's cold-rolling plant in Maharashtra, expand its market share in India.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)