CEO Townhall Meeting Held
Double Revenue and Quadruple Operating Profit Growth by 2030
POSCO Group has declared its ambition to double its combined group sales and quadruple its operating profit by 2030, aiming to become a top-tier global company with the highest corporate value in the materials sector.
On the 1st, POSCO Group announced on the 2nd that it held a 'CEO Town Hall Meeting' at the Pohang Change-up Ground to conclude Chairman Jang In-hwa's '100-day on-site accompaniment,' conduct a mid-term review of the seven future innovation tasks, and share the future management vision with employees.
Jang In-hwa, Chairman of POSCO Group, is answering employees' questions at the town hall meeting held at Pohang Changeup Ground on the 1st. (Provided by POSCO Holdings)
Chairman Jang said, "Let us boldly innovate beyond limits and challenge the future by restoring our core competitiveness and trust across the group's business, management system, and organizational culture," adding, "By 2030, let us double the group's combined sales and quadruple operating profit, aiming for a combined market capitalization of 200 trillion KRW, and leap forward as a global top-tier company with the highest corporate value in the materials sector."
This goal represents more than tripling POSCO Group's current market capitalization. On that day, POSCO Holdings' market cap was 31.2067 trillion KRW, POSCO Future M 20.489 trillion KRW, POSCO International 11.0831 trillion KRW, POSCO DX 5.8153 trillion KRW, POSCO M-Tech 868.2 billion KRW, and POSCO Steelion 275.7 billion KRW.
Furthermore, Chairman Jang presented the mid-term achievements and future plans of the '7 Future Innovation Tasks,' covering steel, secondary battery materials, new business discovery and management, and trustworthy management systems and corporate culture, while also unveiling the group's future vision of 'achieving the highest global corporate value in the materials sector by 2030.'
Through the future innovation tasks, the steel sector achieved cost savings and profit generation effects amounting to 230 billion KRW by improving manufacturing costs. For a realistic and economical green transition (GX) as part of the decarbonization strategy, a roadmap was established to promote the development of HyREX technology linked with the hydrogen reduction steelmaking demonstration project planned by the Ministry of Trade, Industry and Energy. Investment priorities were also set to secure growth markets centered on global upstream and midstream processes in India and North America.
In the secondary battery materials sector, qualitative improvements across the entire value chain were derived, from productivity enhancement to raw material procurement and sales channel diversification, as well as a review of investment priorities. The 'chasm' period (temporary demand stagnation) is viewed as an opportunity to solidify market dominance, with investment plans confirmed for premium resources through collaboration with salt lakes in Chile and Argentina, and mining and resource companies in North America and Australia.
As a future strategy for secondary battery materials, a differentiated regional market strategy was established, diversifying the global raw material supply chain by focusing on ternary materials in developed countries and expanding the supply chain centered on LFP (Lithium Iron Phosphate) in emerging markets. Plans are also in place to secure next-generation technology standards based on partnerships.
In particular, the new materials sector is planned to be nurtured to achieve sales exceeding 5 trillion KRW by 2030. To rapidly secure the new materials industry, including advanced materials applicable to future industries such as aerospace, a new business promotion process based on M&A (mergers and acquisitions) has been established. Structural reform plans for businesses that continue to incur losses or lose investment purposes have also been finalized and will be continuously pursued over the next three years.
Regarding the group’s governance structure, Chairman Jang announced that the 'Governance Innovation Task Force,' launched upon his appointment, will improve the appointment and evaluation processes of outside directors to build an independent and transparent governance structure, strengthen the independence of the board of directors, and create a CEO candidate development program to serve as a role model for domestic and global companies.
Chairman Jang expressed, "Along with gratitude for the precious passion of our employees, I wanted to give assurance of how valuable the work we do is," and urged, "Let the management take a step closer, lead by example, and become a one team that trusts each other."
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