SCO CEO Makes Speech at Congress of Mexican Steel Industry
OREANDA-NEWS. October 09, 2012. CEO Chung Joonyang made a keynote speech at the 2nd Annual Congress of the Mexican Steel Industry under the theme of `Challenge and Opportunity of the World`s Steel Industry`, reported the press-centre of POSCO.
During the keynote speech, which took place by invitation of the Mexico Steel Association, CEO Chung Joonyang reflected on the global economic stagnation and the current situation faced by the world`s steel industry, shared cases on how POSCO`s technology and win-win position overcame crises, and explained POSCO`s investment status in Mexico.
CEO Chung Joonyang noted that the world`s economy in the case of advanced countries will continue to stagnate for the next 2~3 years due to high national debt levels and intense budget reductions, while emerging countries will become aligned with advanced country economies due to continued domestic stagnation and a slowdown in exports, noting that, in the process of overcoming the financial crisis in 2008, national debt that strikingly increased is expected to restrain the world`s economic growth.
Also, the previously strong steel demand recovery which was 14.2% in 2010 centered on emerging countries is projected to drop to 2.4% this year and 3.1% next year.
# Production abilities # materials and # climate change were stressed as current issues that the world`s steel industry is particularly faced with.
He explained that, amidst the decline in the world`s steel demand, there is a surplus in steel production facilities, and compared to the world`s steel demand of 640 million tons, China`s surplus capabilities have reached more than 200 million tons.
Material costs are showing stabilized declines, but due to material company oligopoly, material costs are expected to remain high compared to declining steel prices.
CEO Chung projected that the last issue the steel industry faces is climate change, and with stronger restrictions on greenhouse gases, the risks of the steel industry will increase. Amongst these environmental restrictions, the steel industry must develop technology that can maximize energy efficiency so that CO2 emission can be minimized in the steel production process, proactively publicize that steel is an environment-friendly material in terms of lifecycle, and offer solutions for green growth.
In addition, POSCO announced its efforts to continue environment-friendly, economical, and future oriented technology development to secure future competitiveness. CEO Chung particularly introduced activities of POSCO to become a loved company. POSCO`s loved company philosophy is ultimately creating value for its stakeholders, and emphasized that their efforts are to go beyond being a great company to become a loved company.
Meanwhile, CEO Chung Joonyang, after the Congress of the Mexican Steel Industry, met with Chairman Ancira of Mexico`s steel company AHMSA and discussed ways for cooperation between the two companies.
He also exchanged thoughts on how to overcome the steel industry crisis with President P. Marcus of World Steel Dynamics (WSD), who was the speaker for the second keynote speech.
POSCO is currently constructing the second CGL factory in the Altamira region of Mexico, planned for completion in June of 2013.