POSCO aims to join global top 100 by 2020

Korean steel giant POSCO said Friday that it aims to rank within the top 100 in terms of global sales by 2020.

The firm said it plans to strengthen its mainstay steel business by increasing output to 50 million tons annually. A 30 million ton-capacity mill in Indonesia will be completed in 2013. Facilities in Vietnam and Pohang, which will be able to produce 1 and 2 million tons respectively, will be built by 2014.

In March, POSCO chose steel, materials and energy as three key businesses to achieve 200 trillion won in yearly revenue by 2020 when it celebrated its 44th anniversary.

Chairman Chong Joon-yang said the growth will be driven by four areas ― the competitiveness of its steel business, its new growth vision, increased management efficiency and the continued philosophy to become a “company that is loved.”

“We cannot ignore the uncomfortable truth that we are at our most serious crisis since being founded due to continuing uncertainties overseas,” said Chong. He has asked employees to work together passionately to see the firm become a powerhouse in energy and materials equal to its steel business.

POSCO will also increase its rate for self-supplying raw materials to 50 percent from 2011’s 34 percent.

It plans to expand its materials selling business so that it will contribute over 10 percent of total revenue by 2014. Its energy business has with same revenue goal.

To get an edge in these areas, the company plans to increase spending on research and development on materials and energy. It currently invests 1.5 percent of total yearly revenue on research, which according to POSCO is high compared to most rivals. It will be increased to 2 percent by 2020.

The steelmaker currently has three research labs that focus on technology, science and business.

Its recognition has been rising visibly in recent years. It ranked 146th in Fortune’s top 500 companies for 2011, posting revenue of 68 trillion won that year. It ranked 161st in 2010.

POSCO has been chosen as the most competitiveness steelmaker for three straight years starting in 2010 by global research agency World Steel Dynamics beating 34 other global counterparts.

It attributes this to the maturity of its workers, production power, heat-resistant steel used in light emitting diode TVs and other technologically innovative products. <The Korea Times/Cho Mu-hyun>