Posco Daewoo to Build New Growth Engines

POSCO Daewoo seeks to expand its businesses and establish an integrated energy value chain aimed to grow as a general operating firm beyond trading.

At the investors meeting held at Yeouido on Friday, POSCO Daewoo CEO Kim Young-sang shared the company's mid- and long-term plans for structural changes and ways to create new value. The trading firm deals with a range of products including steel, auto components and machinery.

"We need to keep our eyes on higher profitability and make structural changes in our businesses accordingly," Kim said. "By implementing new strategies, we will be able to position ourselves as a general operating firm beyond trading."

The company announced its "2 Core + 3 Expansion" strategy referring to the company's plan to focus on steel and resource development as its two core businesses while expanding into three businesses: food, auto components, and Independent Power Production (IPP).

Bolstered by the booming steel industry, its trading sector will remain solid. The steelmaker plans to increase steel sales to 35 million metric tons by 2020. The company will set up a distribution office in the United States by the second quarter of this year to battle about trade barriers and respond quickly to market demands.

It also plans to build a distributor for rebars in Myanmar and a stainless steel processing center in Turkey.

In terms of resource development, POSCO Daewoo will establish an integrated energy value chain that...