About Company POSCO or POSCO Holding Inc. is Korea's first integrated steel plant, established on April 1, 1968, with the goal of national industrialization. Today, POSCO is an international brand that produces 41 million tons of crude steel annually and is the most competitive steel maker. The Korean company acquired global status by spreading its production and sales operations across 53 countries. The company's relentless efforts in innovation and development of technology have contributed to the development of mankind. In the process, the company could gain a tremendous competitive edge. POSCO, now a multinational company, operates through three business divisions – Steel is the primary business division, followed by Engineering and Construction and Trading. The giant steel maker produces and markets steel plates and rolled products globally. The range includes hot and cold-rolled steel product plates, silicon steel sheets, and wire rods. It also produces stainless steel products for shipbuilding, automotive, engineering, home appliance, machinery, and engineering industry. In addition, POSCO has its presence in the construction industry. It offers turnkey services in civil engineering projects, residential and commercial buildings, and building industrial plants right from the planning stage of designing and construction. Its other operations include trading steel and raw materials, power generation, and network system integration. Being primarily a holding company, POSCO is interested in diverse business fields. The company maintains its global operations covering various continents. Headquartered in Pohang Si, South Korea, POSCO was the world's fifth-largest crude steel manufacturer in 2018. The following year, the company earned the first rank globally in profitability in terms of EBIDITA per ton capacity. It was a remarkable achievement for the company that celebrated its Golden Jubilee that year and created a milestone in the company's history. POSCO Maintains its Trend of High Profitability As of 2021, the company's revenue was $66.7 billion, with a market cap of $16.4 billion. In 2021, the company's net income increased three times compared to the previous year. The net profit margin increased 213% over the margin achieved in 2020. What is the Mission of POSCO? POSCO aims to serve its customers with products and services that benefit society in every aspect. To fulfill the mission, the company strives to achieve product quality and management excellence. The company attaches immense importance to innovation and values ethical principles in driving the business. POSCO's ambition is to become a pioneering company that earns high respect from everyone. A Snapshot of the POSCO Business Model POSCO is a new entity of the erstwhile Pohang Iron and Steel Company Limited, and its annual output is roughly 26 million tons of steel products, hot and cold-rolled and stainless steel. The company offers 72% of its output for domestic consumption, mainly in the automotive, shipbuilding, and home appliances industry. The remaining 28% is for exports to almost 60 countries. POSCO is a holding company with several subsidiaries and joint-ventures worldwide, like POSCO-India and Indonesia. Learning a lesson from the Asian economic crisis of the 1990s, POSCO started collaborating and partnering with other international steel companies like the Nippon Steel Corporation, Japan, which was once its arch-rival. The alliances allowed the company to offer value-added steel products while hiving off non-performing joint ventures and non-profitable operations. Today, POSCO has a significant presence in China. Which are the Principal Subsidiaries of POSCO? Dalian POSCO-CFM Coated Steel Co., Ltd. (59%) Pohang Steel Australia Pty., Ltd. (95%) Pohang Steel America Corp. (99%) POSCO International Osaka Inc. (95%) POSCO Engineering & Construction Co., Ltd. (97%) POSCO Venezuela Caompania Anonima (59%); POSDATA Co., Ltd. POSCO Machinery & Engineering Co., POSCO Research Institute (99%) POSLILAMA Steel Structure Co., Ltd. (68%) POS-Tianjin Coil Center Co., Ltd. (39%) POS-THAI Steel Service Center Co., Ltd. (67%) VSC-POSCO Steel Corp. (40%) Posnesia Stainless Steel industry (70%) Zhangjiagang POSCO Coated Steel Co., Ltd. (90%) Zhangjiagang Pohang Stainless Steel CO., Ltd. (80%) The above list bears testimony to POSCO's global reach by establishing operations in various countries across continents. Who are POSCO’s Main Competitors? Bechtel Group, Inc.; Arcelor S.A.; Fluor Corporation; Kawasaki Steel Corporation; Corus Group plc; Nippon Steel Corporation; Kobe Steel, Ltd.; Toyota Tsusho Corporation, and Shanghai Baosteel Group Corporation are POSCO’s main international competitors. Which Technologies did POSCO Innovate? Innovation has been the driving force behind POSCO's progress, helping it become one of the largest steel makers in the world. To name a few, POSCO developed indigenous technologies like Strip Casting, Finex technology, Operation technology, and Endless Hot Rolling technology. POSCO Affiliates POSCO Steeleon is a POSCO-affiliated company that started within the Pohang Steel Complex in 1988. Manufacturing aluminized and steel sheets from galvanized steel sheets of Pohang was the primary operation of the company. In March 199, the company merged with a color steel manufacturer Pohang Steel Materials. The company's products are helpful for home appliances, vehicles, and architectural materials. POSCO M-Tech commenced its operations in 1973 as a specialty raw steel material supplier and steel packaging materials. The company has strengthened its position over the last 30 years and serves POSCO and foreign steel mills that use the products. POSCO M-Tech brings a new synergy to the steel industries by offering products from its non-ferrous metal refinement business, ferroalloy, etc. The company intends to position itself as a global environment-friendly company by using the expertise and knowledge gathered over the years. PNR or POSCO Nippon Steel RHF Joint Venture Co. Ltd is a POSCO-affiliated company formed in January 2008. The JV used Nippon's Rotary Heat Furnace Technology (RHF), an environment-friendly technology that helped to contain the rising cost of steel manufacturing. The technology effectively resolved waste management issues without depending on outside sources, which helped lower costs. It also helped avoid land-fills with steel waste, considerably reducing soil contamination. PNR is a waste handling facility for the steel industry that annually processes 200,000 tons of sludge containing dust and water generated from the steel-making processes. Why is POSCO a True Multinational? The Korean steel maker is a truly multinational company in every continent. POSCO's global business spreads across Europe, Asia, Africa, Oceania, America, and South America. POSCO has a widespread network across Asia in Japan, China, Thailand, Vietnam, Malaysia, Indonesia, and India. In Europe, POSCO Europe has its base in Frankfurt, Germany. POSCO America and POSCO Mexico, situated in the cities of John's Creek and Altamira, respectively, operate across North and South America. POSCO Key Financial Highlights POSCO maintained its pace of growth through the years and, by embracing innovation for social good, became the world's most competitive steel maker. Looking at some figures for the last two years provides evidence of the company's high growth rate. The company increased the annual growth percentage by 50.59% in net sales and total operating revenue. Operating profit (EBIT) increased by 485.77% and EBIDTA by 157.32%, and the company's net profit increased by 436.43% during the period. The company's total assets increased by 13.11%, and the total equity increase were 8.69%. Operating profit margin rose by 12.38%, net profit margin by 9.34%, and return on equity by 8.34%. There was a slight decline in cash ratio (-0.11%), quick ratio (-0.72%) and debt to equity ratio(-0.14%). When was POSCO Privatized? Privatizing POSCO began in 2000, and it took about a year to complete the process in 2001. Further Reading \t How to Use T-Shirt Advertising to Promote Your Business? \t Facts that Nobody told you about why we fall in Love \t What Would Happen if You Didn’t Sleep?