Posco Group eyes lofty $144B market capitalization valuation by 2030

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Posco Group eyes lofty $144B market capitalization valuation by 2030

Published: 08 Oct. 2024, 10:00 Updated: 08 Oct. 2024, 10:03

Posco Group chairman and CEO Chang In-hwa, middle, outlined on July 1 during the “CEO Town Hall Meeting” held in Pohang, North Gyeongsang, that the group aims to reach a market capitalization of 200 trillion won ($144 billion). [POSCO GROUP]

Posco Group plans to expand in the materials engineering field and surpass all competitors in corporate value by achieving a market capitalization of 200 trillion won ($144 billion) by 2030.

On July 1, during the “CEO Town Hall Meeting” where the group’s corporate vision was shared among executives and staff, Posco Group’s chairman and CEO Chang In-hwa, said, “it is crucial to innovate beyond current limits, challenging ourselves to strive toward the future by rebuilding core competencies and trust across the board — in our business, management and corporate culture.”

Chang said the steel manufacturing giant’s ambition is to “double combined sales and quadruple operating income by 2030. With steel, secondary battery materials and new materials as the pivotal axis, we will become a global first-rate corporation with a total market capitalization worth 200 trillion won.”

In the steel manufacturing sector, upstream process investments will be made in India and the United States, while low profit assets will be restructured to improve asset management efficiency.

As part of its de-carbonization strategy, Posco is developing the HyREX iron-production method in association with the Hydrogen-based Steelmaking Demonstration Project under the Ministry of Trade, Industry and Energy, for a more practical and cost-efficient Green Transformation (GX).

In the secondary battery materials sector, the goal is to secure outstanding resources and construct effective systems of mass production, fully taking advantage of a slowdown in the market to strengthen core competencies and become a global provider of raw and processed materials.

Posco Group predicts rapid progress and expects 97 percent of structural reforms to be completed by 2026, implying cash inflows of around 2.6 trillion won. This influx of cash will be used for reinvestment in core businesses and shareholder returns. The secondary battery materials project specifically aims to accumulate group sales worth 11 trillion won by 2026. This will be the first year in which all of Posco’s secondary battery material supply systems will be in full-scale operation. The intent is to pave the way for the secondary battery materials project by improving operations and sharpening the competitive edge of supporting operations.

Posco Group intends to secure outstanding resources such as salt lakes and mines and will also diversify the customer base and product portfolio of cathode materials, while strengthening its line-up in anode materials, which includes natural, synthetic and silicone-based anodes.

It plans to commercialize all-solid state batteries for clients and establish its position in the next generation battery materials market by supplying cathodes, solid electrolytes lithium and steel anodes — the three main components of all-solid-state batteries.

Posco Group will continue investing in the secondary battery materials sector, the current plan being the establishment of a production system with a production capacity of 96,000 tons (192 million pounds) of lithium, 48,000 tons of nickel, 395,000 tons of cathodes and 114,000 tons of anodes.

The group also plans to cultivate the new materials sector to reach over five trillion won in sales by 2030. It constructed a business development process based on mergers and acquisitions to seize early-mover advantage in the broader new materials industry.

In terms of corporate culture, it plans to establish a flexible and horizontal corporate culture via reward systems and personnel operations centered on competence and merit. It also intends to give back to its communities by fostering open communication, a positive feedback loop and sustainable business practices.

BY KIM YEONSOO [kim.yeonsoo1@joongang.co.kr]

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