Posco vows to invest W121tr for next big leap

Posco Group Chairman Choi Jeong-woo speaks during a ceremony held to mark the 50th anniversary of Posco’s first steel mill, Pohang, North Gyeongsang Province, Monday (Posco Holdings)

Posco Group announced Monday that it will invest 121 trillion won ($93 billion) by 2030 to step up as a global leader in eco-friendly materials.

The new investment plan was announced during a ceremony celebrating the 50th anniversary of Posco’s first steel mill set up in Pohang, North Gyeongsang Province, in 1973.

“With the investment, (the group) will secure future technologies, stay ahead in the growing industries and work toward a sustainable future through green materials,” Posco Group Chairman Choi Jeong-woo said at the ceremony.

Under the plan, Posco said it will consolidate its leadership in the steel manufacturing business while seeking aggressive expansion of its burgeoning battery materials and hydrogen businesses.

The steel giant’s hydrogen push, especially its wider adoption throughout the steelmaking process, will help the group become carbon neutral by 2050, the group stressed.

The Posco chief added that over 60 percent of the planned investment, or 73 trillion won, will be spent in boosting its Korean operations in Pohang, Gwangyang in South Jeolla Province and other regions, for balanced regional development and the creation of new jobs at home.

The group said its domestic investment alone is expected to generate a production inducement effect of 121 trillion won per year and create some 330,000 new jobs a year through 2030.

Monday’s ceremony was also attended by Posco Group Vice Chairman Kim Hak-dong, North Gyeongsang Province Gov. Lee Cheol-woo, Pohang Mayor Lee Kang-deok and other officials from Posco and local government.

Posco started the construction project for its first steel mill in April 1970. A total of 120 billion won was injected to build 22 manufacturing facilities that paved the way for the growth of the nation’s heavy industries, including shipmaking and automobile production. The facilities also helped drastically reduce the nation’s huge dependency on steel imports at the time.

“Construction of the first mill in Pohang was a historical turnaround in the country’s economy,” Choi said.

"As much as its steel business has helped Korea boost its economic development, Posco Group will continue to nurture its major businesses, involving steel, secondary battery materials and hydrogen, to step up as a global business leader that can contribute to the sustainable future of humanity.”

By Shim Woo-hyun(ws@heraldcorp.com)