Jang In-hwa, chairman of the POSCO Group (holding company POSCO Holdings), said on the 2nd that he aims to overcome the difficult management environment and leap to become a top-tier corporation through key initiatives in 2025. Jang evaluated the restructuring conducted last year as a means to secure funds to finance the group's growth business investments.
On this day, Jang noted in his New Year's address for 2025, "As we begin a new year, we face an urgent situation where we must consider both today's survival and tomorrow's growth due to the trade contraction from great power competition and sluggish demand in both domestic and foreign industries."
He stated, "Amid increasing policy volatility both abroad and domestically, we must recognize that the group's core businesses, including steel and secondary battery materials, are facing a serious crisis to the extent that survival is in question. However, difficulties are conditions equally presented to our competitors, so the future of each corporation will greatly differ depending on how we navigate the current situation."
Jang announced six major tasks, stating, "I will turn the current difficulties into opportunities for transformation and make a new leap forward." The tasks include: ▲ establishment safety and robust facilities ▲ securing an absolute technological advantage ▲ carbon neutrality and cost innovation in the steel business ▲ securing and stabilizing high-quality resources in the secondary battery business ▲ restructuring of infrastructure business ▲ advancing new businesses based on future materials.
Regarding establishment safety and robust facilities, Jang remarked, "Everyone must be particularly vigilant about removing workplace hazards so that all can complete their tasks in a safe environment," adding that, "We must stabilize the operating site through robustification, which includes the 3Rs (proper position, proper quantity, proper product), 5S (sorting, organizing, cleaning, sanitization, systematic habits), and restoring the performance of large infrastructure facilities."
About securing technological advantages, he noted, "We will establish a research and development (R&D) system centered on the holding company to strengthen the linkage between technology and business strategies in all processes from R&D to production and sales, and we will enhance the technological development framework centered on projects with high effectiveness and growth potential." Through this, he said, they will achieve proactive technological proposals to clients in steel products, extending partnerships, and position themselves to take the lead in next-generation technological standards like all-solid-state batteries in secondary battery materials.
Regarding the steel business, he stated, "In the rapidly changing supply chain reorganization, we must move away from the past approach of exporting domestically produced materials to overseas production bases and achieve results with a complete localization strategy from materials to products in global growth markets such as India and North America," adding that, "Cost structural innovation for survival must precede plans for equipment efficiency and procurement structure reform for raw materials."
For the secondary battery materials business, he emphasized, "We must secure high-quality resources such as lithium in a timely manner to proactively respond to global demand, and not only stabilize operations of the corporations that have begun commercial production but also secure the highest level of competitiveness in terms of cost and quality." He also stated, "I will focus on qualitative growth through the internal strengthening of the business," adding that for the infrastructure business, "I will swiftly execute restructuring of low-profit businesses to enhance capital efficiency."
Regarding the advancement of new businesses, he noted, "I will identify specific business items centered on the new business candidates selected last year in accordance with the direction of future society," stating, "Ultimately, I will cultivate future new businesses to ensure they synergize with the steel and secondary battery materials, positioning them as a key pillar of the group's business portfolio."
He assessed that regarding last year's restructuring and business performance, "We focused the group's capabilities on executing seven major future innovation tasks, including rebuilding the steel business and securing competitiveness in secondary battery materials," noting that "Funds generated through restructuring underperforming businesses were utilized as investment resources for the group's growth businesses."
He emphasized, "POSCO Group is at a significant turning point to contribute to humanity's prosperity with materials that open the future and to leap to become a top-tier corporation by overcoming the current crisis," urging, "Let us unify the hearts and wills of all employees and boldly embark on a hopeful journey to overcome the challenging management environment and leap to becoming a top-tier corporation."