Profile: Posco (PKX)
5 Dec 2016
POSCO, incorporated on April 1, 1968, is an integrated steel producer. The Company operates in four segments: steel, trading, engineering and construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation (POSCO Daewoo), exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration.
The Company produced approximately 42.0 million tons of crude steel, a portion of which is produced at Pohang Works and Gwangyang Works. Pohang Works has approximately 17.6 million tons of annual crude steel and stainless steel production capacity and Gwangyang Works has an annual crude steel production capacity of approximately 24.8 million tons.
The Company has established various subsidiaries and joint ventures around the world that engage in steel production activities. It manufactures and sells a range of steel products, including cold rolled and hot rolled products, stainless steel products, plates, wire rods and silicon steel sheets, and it is able to meet a range of customer needs from manufacturing industries that consume steel, including automotive, shipbuilding, home appliance, engineering and machinery industries. It sells primarily to the Korean market. The Company established POSCO Coated and Color Sheet Co., Ltd., which has an aggregate annual production capacity of over 600 thousand tons of galvanized and aluminized steel sheets used in the construction, automotive parts and home appliances industries. POSCO Coated and Color Sheet Co., Ltd. also has an aggregate annual production capacity of approximately 350 thousand tons of color sheets that are used for interior and exterior materials and home appliances. POSCO Coated and Color Sheet Co., Ltd. produced approximately 610 thousand tons of galvanized and aluminized steel sheets and over 310 thousand tons of color sheets.
The Company, through Zhangjiagang Pohang Stainless Steel Co., Ltd., manufactures and sells stainless cold rolled steel products. Zhangjiagang Pohang Stainless Steel Co., Ltd. produced approximately 147,000 tons of stainless steel products. The Company, through Qingdao Pohang Stainless Steel Co., Ltd. subsidiary, manufactures and sells stainless cold rolled steel products in China, and produced over 180 thousand tons of such products. The Company, through POSCO Vietnam Co., Ltd., manufactures and sells cold rolled steel products with an annual production capacity of approximately 1.2 million tons of cold rolled products, which produced over 900 thousand tons of such products.
The Company, through PT. Krakatau Steel (Persero) Tbk., manufactures and sells plates and slabs, and produced over 2.7 million tons of plates and slab. The Company, through POSCO Thainox Public Company Limited, produced over 170 thousand tons of stainless cold rolled products. The Company sells hot rolled products to USS-POSCO Industries Corporation, which uses such products to manufacture cold rolled and galvanized steel products and tin-plate products for sale in the United States. The Company sells hot rolled products to USS-POSCO Industries Corporation, which uses such products to manufacture cold rolled and galvanized steel products and tin-plate products for sale in the United States.
In Mexico, the Company, through POSCO Mexico S.A. de C.V., has an annual production capacity of approximately 0.4 million tons of cold rolled products and commenced commercial production to supply automotive manufacturers in Mexico, Southeastern United States and South America. In addition, it has also established supply chain management centers around the world to provide processing and logistics services, such as cutting flat steel products to smaller sizes.
The Company's subsidiaries that engage in trading activities include POSCO Processing & Service Co., Ltd. that primarily focuses in the domestic market, and POSCO Asia Company Limited located in Hong Kong, POSCO Japan Co., Ltd. located in Tokyo, Japan, POSCO America Corporation located in New Jersey, the United States and POSCO South Asia Co., Ltd. located in Bangkok, Thailand. POSCO Daewoo is a trading company that primarily engages in trading of steel and raw materials, as well as investing in energy and mineral development projects. It also manufactures and sells textiles and operates a department store in Korea.
POSC Daewoo's trading activities consist of exporting and importing a range of products and commodities, including iron and steel, raw materials for steel production, non-ferrous metals, chemicals, automotive parts, machinery and plant equipment, electronics products, agricultural commodities and textiles. POSCO Daewoo is also engaged in third-country trade that does not involve exports from or imports to Korea. The products are obtained from and supplied to suppliers and purchasers in Korea and overseas, which are procured through a trading network consisting of overseas trading subsidiaries, branches and representative offices. Such subsidiaries and offices support POSCO Daewoo's trading activities by locating local suppliers and purchasers on behalf of customers, identifying business opportunities and providing information regarding local market conditions. POSCO Daewoo also invests in energy and mineral development projects throughout the world.
The Company's POSCO Engineering & Construction Co., Ltd. (POSCO E&C) subsidiary is primarily engaged in the planning, design and construction of industrial plants and architectural works, and civil engineering projects. In Korea, POSCO E&C has also focused on diversifying its operations into construction of apartment complexes and participating in a range of architectural works and civil engineering projects, as well as engaging in urban planning and development projects and expanding its operations abroad. One of its urban planning and development projects include the development of approximately 5.7 million-square meter area of Songdo International City in Incheon. It is also engaged in the energy field obtained from the construction of various power plants for member companies of the Company and its subsidiaries, specializing primarily in engineering and construction of LNG and coal-fired thermal power plants. POSCO E&C has obtained various orders for such power plants, including LNG-fired power plants in Incheon, Korea and coal-fired thermal power plants in Ventanas and Angamos, Chile.
The Company's subsidiary, POSCO Energy Corporation, is a domestic private power utility company, which operates LNG combined cycle power generation facilities with total power generation capacity of over 1,800 megawatts. The Company operates a LNG receiving terminal that is equipped with over two 100,000 kiloliters storage tanks, approximately two 165,000 kiloliters storage tanks and additional facilities with an aggregate capacity to process approximately 2.4 million tons of LNG annually in Gwangyang. It has established several subsidiaries that address specific services to support the operations of Pohang Works and Gwangyang Works. Its POSCO ICT Co., Ltd. provides information and technology consulting, and system network integration and outsourcing services. POSCO Processing & Service Co., Ltd. provides material processing and fabrication services. POSCO Chemtech Company Ltd., formerly POSCO Refractories and Environment Company, Ltd., specializes in the manufacturing of refractories and lime used in steel manufacturing processes, as well as a range of chemical products.
The Company competes with Hyundai Steel Co., Ltd. and ArcelorMittal S.A.
6261, Donghaean-Ro, Nam-Gu
Company Web Links
- Australia's Arrium sells Moly-Cop for $1.2 billion to American Industrial Partners
- UPDATE 1-Arrium's Moly-Cop sold for $1.23 bln to private equity firm-sources
- UPDATE 1-POSCO says not a bidder for Australia's Arrium steelworks
- UPDATE 2-POSCO Q3 profit jumps to more than 4-yr high on steel price gains
- POSCO posts weak second quarter; sees long-term benefit from China steel reforms