New POSCO Chmn. Choi to Step Up Reform Drive
Chmn. Choi Jeong-woo declares plan to strengthen growth engines in new energy materials, EV batteries and ESS at first media briefing following shareholders approval of appointment
New Chairman Choi Jeong-woo visits the 2nd Blast Furnace of POSCO Pohang Steel Complex to encourage the technicians following his inauguration as the top executive of the steel giant on July 27.
Chairman Choi Jeong-woo of POSCO.
New POSCO Chairman Choi Jeong-woo said he will step up a reform drive to strengthen the non-steel area of POSCO¡¯s operations, such as the new energy sector and key materials for EV batteries. He will also take up policies to produce more high-quality steel with segregated strategies to make the company highly competitive. He said he will hire outside experts to take charge of the EV battery and ESS production segments.
At a meeting with media following the shareholders¡¯ approval of his appointment on July 27, the new chairman said he will aim to set up new affiliates to take charge of the new growth engines, such as both poles and negative poles, including R&D activities and marketing in a bid to boost synergy in those new business sectors. He said he will conduct organizational reform of POSCO and its affiliates at the end of this year to set up new affiliates for the new growth engines, including EV batteries and ESS, and hire outside experts to run them.
The new chairman said he would like to see POSCO¡¯s new energy materials sector share 20 percent of the market by 2030, with annual revenue coming to 15 trillion won. At present, POSCO ESM produces both poles products while POSCO Chemtech has been turning out negative pole products. The two companies supply their products to LG Chem and Samsung SDI, South Korea¡¯s two EV battery makers. The two POSCO affiliates plan to go as far as producing raw materials for both poles and negative pole as they use lithium as the key raw material along with cobalt and manganese aluminum mixes.
On POSCO¡¯s survival in the next century, the chairman stressed the need for new value to be created with a strategy named, ¡°Business with POSCO; society with POSCO; and People with POSCO.¡±
An old saying, ¡°If you want to go fast, go alone, but if you want to go far, go together,¡± sums up the new strategy, he said, as the steel maker will be a corporate citizen to grow together with shareholders, suppliers and the regional society.
He also will listen to opinions not only from experts but also from the general public, so he can make decisions about his management roadmap, the company said.
It will receive opinions through POSCO¡¯s and affiliates' websites and through the email address loveletter@posco.com. The company said any opinions from employees, shareholders, clients, partner companies and others will be welcomed and reviewed by experts at the POSCO Research Institute.
"POSCO's accomplishments in the past 50 years were possible because of the support of the public, residents of Pohang and Gwangyang, shareholders, clients and partner companies," Choi said in a statement. Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province, are the two base cities for the steel giant,¡± Chairman Choi Jeong-woo stated.
He continued: "Before embarking on POSCO's next 50 years, we would like to hear from all of these people about what the company should fix or improve. On my 100th day in office, I will announce a detailed reform package reflecting those opinions."Before embarking on POSCO's next 50 years, we would like to hear from all of these people about what the company should fix or improve. On my 100th day in office, I will announce a detailed reform package reflecting those opinions,¡± he said.
Chairman Choi¡¯s nomination was widely interpreted as POSCO's effort to install fresh leadership and diversify its business portfolio. He has spent most of his POSCO career with the company's non-steel businesses and led POSCO Chemtech, an affiliate producing materials for secondary batteries, before his nomination.
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