An outside view of POSCO’s Shop Gallery. (Photo: POSCO)

The Shop Gallery was dedicated beside Dosan Park in Gangnam-gu, Seoul, last March for the company to make a pitch for the steel products category in the construction industry.

The structure, built with POSCO’s PosMAC (POSCO Magnesium Aluminium alloy Coating product), seems to in harmony with the woods in the park, in sharp contrast to preconceptions over the metal’s cold feeling to the touch.

The building with three floors and 4,966 sq. meters in total floor area was built with 760 tons of POSCO’s premium steel products.

The 1st floor lobby of the structure has a media table to showcase details of steel products under the brand “INNOVILT,” POSCO’s premium brand for steel products for construction.

There are six premium steel products under the brand INNOVILT on display there, including a steel curtain wall, and a high-performance guard rail. The Shop Gallery will be used as a space to exhibit INNOVILT products and hold events to make a pitch for the premium brand.

POSCO launched the brand INNOVILT last December. Steel products for construction are used in architectural structures like buildings and houses, and infrastructure such as roads and bridges.

However, these products are usually hidden under the structure, and even if they are visible, it is hard to recognize the manufacturer just by looking at the end-product. This is why POSCO launched the brand with client companies who make steel products for construction with POSCO’s high-end steel materials.

From now on, end-users as well as professional users can easily identify and select premium products as if they were selecting daily household items or home appliances.

INNOVILT is a combination of the word’s innovation, value and built. The premium brand aims to raise the standard of steel products for construction through hi-tech, creativity, sustainability and partnership.

Jung Tak, head of POSCO’s Marketing Division, said POSCO Group will concentrate its capabilities on the production of premium steel products tailored to meet safety and eco-friendly demands of the future construction market.

With the launch of INNOVILT, POSCO plans to nurture premium steel products into next-generation core products following steel plates for automobiles.

Kim Sang-gyun, chief of POSCO Steel Product Marketing Office, said POSCO aims to raise premium steel products for construction from current 400 ton to 14 million tons in Korea and abroad by 2030.

POSCO’s Q1 Consolidated Sales at 14.545 Trillion Won; Operating Profit of 705.3 Billion Won

On April 24, POSCO reported its Q1 business performance on a consolidated basis in a regulatory filing. POSCO’s Q1 sales totaled 14.545 trillion won. The company’s Q1 operating profit was at 705.3 billion won with a net profit of 434.7 billion won.

Despite the global spread of COVID-19, POSCO achieved a boost in consolidated operating profit by 26.5 percent QoQ, with operating profit of 4.8 percent.

The company maintained its profitability in the steel market by increasing the share of domestic sales.

Stable profits from POSCO International’s Myanmar gas fields and improved performance from POSCO E&C also attributed to the company’s performance, while POSCO Energy continues to benefit from lower fuel costs.

POSCO’s standalone Q1 sales reached 6.969 trillion won with an operating profit of 458.1 billion won. The net profit was at 453 billion won.

As overhaul operations were carried on at Gwangyang Work’s No. 3 blast furnace and its production lines, QoQ production of crude steel and steel products showed a drop, by 540 thousand tons and 240 thousand tons, respectively.

However, a decrease in raw material costs in the final quarter of 2019 helped achieve an increase in operating profit by 24.8 percent. As a result, the company’s operating profit rate stood at 6.6 percent - increased by 1.6 percent QoQ.

Ahead of the COVID-19 crisis, POSCO secured 3.3 trillion won in January to finance its debt, which helped enhance the company’s liquidity. According to the current ratio - an indicator of corporate stability - POSCO ranked one of the highest among domestic companies with a record of 497.1 percent on a separate basis.

This number is a significant improvement from the current ratio of 2019 Q1 standing at 422.7 percent. Funds included in current assets totaled 11.7 trillion won on a separate basis, up 4 trillion won from 2019 Q1.