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Posco Continues to Focus on Innovation, Technology Development
02/11/2009 - Posco is promoting internal technology development and cost-saving innovations at both the Pohang and Gwangyang Works despite current levels of reduced production.
Posco is promoting internal technology development and innovation despite current levels of reduced production.
In an attempt to improve productivity and slash production costs, Posco’s Pohang Works is pursuing technology development using low-priced raw materials, fuels and steel scraps for manufacturing processes from ironmaking, cokemaking, and steelmaking to strip casting.
Pohang also stopped its operation of energy-inefficient facilities, and is making full use of by-products while increasing the use of domestic maintenance equipments. Conventional check-ups, which were normally carried out on a regular schedule will now be conducted flexibly according to actual output.
Posco’s Gwangyang Works is pursuing comprehensive productivity improvements through cost reductions and process management. Gwangyang has applied cost-effective manufacturing methods such as using increased percentages of sintered ore in the ironmaking process and utilizing minimill processes, which have become far more competitive as scrap prices plummeted. Gwangyang is maximizing cost reduction by developing technologies to respond to blowing down of blast furnaces and controlling reducing agent costs below a certain level.
Gwangyang Works also will be developing mass production technologies for high-end products and expanding orders for ultra-thin or thick steel plates, which was difficult under more conventional mass-production system. It is also planning to revamp facilities that were previously under pressure for continuous production, and to carry out special check-ups for large structures such as blast furnaces.
Posco said that both Pohang and Gwangyang Works will make the most of the idle time that has resulted from production curtailments by revitalizing innovation activities and pursuing actions to enhance employee competence.
Employees at Pohang and Gwangyang will be encouraged to use the idle hours to complete `My machine` activities and acquire job-related licenses. Meanwhile, the main theme of employees’ study groups will be cost reduction. Gwangyang Works is targeting 90% of its workforce to acquire facility maintenance industrial engineer license.
Posco achieved substantial cost reductions of –1.1 trillion won in 2006, 820 billion in 2007, and 730 billion in 2008. For 2009, the company is planning another massive cost reduction of 950 billion won, supported in part by employees promoting cost saving activities.
In an effort to deal with the economic situation and slowdown in the steel-consuming industries, Posco slashed its steel output by 200,000 tonnes in December and 370,000 tonnes in January. Posco said that it plans to reduce production by an additional 200,000 tonnes in February.
In an attempt to improve productivity and slash production costs, Posco’s Pohang Works is pursuing technology development using low-priced raw materials, fuels and steel scraps for manufacturing processes from ironmaking, cokemaking, and steelmaking to strip casting.
Pohang also stopped its operation of energy-inefficient facilities, and is making full use of by-products while increasing the use of domestic maintenance equipments. Conventional check-ups, which were normally carried out on a regular schedule will now be conducted flexibly according to actual output.
Posco’s Gwangyang Works is pursuing comprehensive productivity improvements through cost reductions and process management. Gwangyang has applied cost-effective manufacturing methods such as using increased percentages of sintered ore in the ironmaking process and utilizing minimill processes, which have become far more competitive as scrap prices plummeted. Gwangyang is maximizing cost reduction by developing technologies to respond to blowing down of blast furnaces and controlling reducing agent costs below a certain level.
Gwangyang Works also will be developing mass production technologies for high-end products and expanding orders for ultra-thin or thick steel plates, which was difficult under more conventional mass-production system. It is also planning to revamp facilities that were previously under pressure for continuous production, and to carry out special check-ups for large structures such as blast furnaces.
Posco said that both Pohang and Gwangyang Works will make the most of the idle time that has resulted from production curtailments by revitalizing innovation activities and pursuing actions to enhance employee competence.
Employees at Pohang and Gwangyang will be encouraged to use the idle hours to complete `My machine` activities and acquire job-related licenses. Meanwhile, the main theme of employees’ study groups will be cost reduction. Gwangyang Works is targeting 90% of its workforce to acquire facility maintenance industrial engineer license.
Posco achieved substantial cost reductions of –1.1 trillion won in 2006, 820 billion in 2007, and 730 billion in 2008. For 2009, the company is planning another massive cost reduction of 950 billion won, supported in part by employees promoting cost saving activities.
In an effort to deal with the economic situation and slowdown in the steel-consuming industries, Posco slashed its steel output by 200,000 tonnes in December and 370,000 tonnes in January. Posco said that it plans to reduce production by an additional 200,000 tonnes in February.
