POSCO INTERNATIONAL CORPORATION - Hosted the Green Material Value Day event on the 8th of this month for institutional investors and securities firm analysts
- Presented the growth roadmap for 4 key green material businesses including ▲energy steel, ▲mobility, ▲secondary battery materials, and ▲steel materials
- Projects a 200% increase in revenue and a 400% increase in operating profit for the green material business by 2030 to solidify its position as a leading eco-friendly integrated corporation
POSCO INTERNATIONAL has announced its growth roadmap for the green material business, a focused priority area for company advancement.
POSCO INTERNATIONAL (Vice Chairman Jeong Tak) organized the Green Material Value Day event, which was attended by approximately 60 institutional investors and securities firm analysts. It was led by Lee Kye-In, Chief Officer of Global Business Unit, Kim Byung-Hwi, Head of Green Department, and No Min-Yong, President of POSCO Mobility Solutions, at the FKI Tower in Yeouido on the 8th.
This newly created 'Value Day,' an IR event where key executives explain the company's growth plan to investors and securities experts, is the second such event this year, following the 'Energy Value Day' event held in last July.
This event marked the first public appearance since the company decided to focus on 'eco-friendliness' as its growth axis and developed business strategies around the newly established Green Management Department through organizational reform.
"The sales and operational margins of the green material business are projected to grow by 200% and 400% respectively by 2030," Lee Kye-In, Chief Officer of Global Business Unit, predicted at the event. "The company aims to fully realize its name as an eco-friendly integrated corporation in the future."
He then proposed a roadmap and specific strategies for achieving these goals in the four business groups: ▲green energy steel, ▲green mobility, ▲green secondary battery materials, and ▲green steel materials.
Firstly, the sales goal for the energy steel business in 2030 has been set at 2.23 million tons as the proportion of renewable energy generation has been rapidly increasing. According to renewable energy-related statistics*, the proportion of renewable energy generation is expected to increase from 25% in 2020 to 58% by 2030, and the cumulative demand for green steel will be 5 billion tons.
*Source: International Renewable Energy Agency (IRENA)
In response to this, POSCO INTERNATIONAL plans to secure price stability through a long-term supply contract with POSCO centered on 'Greenate,' a structural steel designed to reduce carbon emissions. Moreover, the company aims to dominate the future green market by developing secured offshore carbon storages in the United States, securing the offshore CCUS platform project in Malaysia, partnering with a company specialized in air battery for steel supply, and developing proactive technology.
Next, in the mobility industry, the company is expanding its business to the hydrogen car value chain while securing an integrated package contract covering battery, parts, and the chassis itself.
For the traction motor core business, the company aims to establish a production system that can handle 10 million units by 2035 by investing KRW 680 billion until 2035 in line with the global expansion of electric cars.
Furthermore, the company aims to increase its annual production to 350,000 tons by 2030 in the field of secondary cell material, which is ten times the previous amount. To achieve this, the company will generate synergy among the affiliates of POSCO Group by building a value chain that includes mines (graphite, lithium, nickel), raw materials (copper foil), materials (anode materials, cathode materials, active materials), and batteries (recycling).
For the steel material business, the company aims to provide a reliable supply to group companies by gradually increasing the amount of scrap iron secured. By 2030, the company plans to meet 5 million tons of scrap iron by establishing a total of 26 collection centers worldwide.
*Steel manufacturers worldwide are vying to secure scrap iron, an essential material for building a low-carbon electric furnace to achieve carbon neutrality.
Baek Jae-Seung, a senior researcher at Samsung Securities who attended the event, said, "I could feel POSCO INTERNATIONAL's strong determination to transform in order to strengthen its green business." He also analyzed that "Especially, the company's ability to expand its value chain in the mobility business will be a crucial factor in increasing its company value."
Meanwhile, POSCO INTERNATIONAL is evolving into a genuine 'platform company' by swiftly transitioning its business structure from eco-friendly to green survival, while selecting and intensively nurturing energy, materials, and agri-bio as its three core businesses.
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Posco International Corporation published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 05:01:03 UTC.
