POSCO Moves to Scale Back Pohang Wire Rod Plant 2, Cutting Staff by Half China-driven oversupply and a prolonged slowdown in global steel demand are pushing POSCO to idle key equipment at its Pohang steelworks. After shutting the No. 1 wire rod plant in 2024, the company is now cutting the workforce at the No. 2 wire rod plant by about half, a move industry officials view as a step toward an effective closure. According to reporting by Aju Business Daily on Saturday, POSCO has recently been reassigning workers from the No. 2 wire rod plant. The plant has operated with four shifts, and two of those teams have already completed transfers to other departments. Industry officials expect operations to stop once the remaining reassignments are finished. The No. 2 wire rod plant began operating in 1984 and has produced high-grade wire rod products. Wire rod is made by rolling steel semi-finished products into coils and is used as an intermediate material for items such as steel wire, wire rope and welding rods. Pohang once ran four wire rod plants. It started operating the No. 1 plant in 1979 and completed the No. 2 plant in 1984 to begin producing high-grade wire rod. As demand rose, it later built the No. 3 and No. 4 plants. Annual capacity is about 750,000 tons for No. 1, 547,000 tons for No. 2, 850,000 tons for No. 3 and 700,000 tons for No. 4. The No. 1 plant was already closed in 2024, citing continued oversupply in the global steel market. The pullback at the No. 2 plant is being driven by similar pressures, as structural oversupply in China has intensified price competition for commodity wire rod and demand has recovered more slowly than expected, squeezing profitability. South Korea’s wire rod demand has stayed below 3 million tons a year over the past three years, hitting its lowest level since 2025. The Korea Iron & Steel Association said that last year domestic wire rod production, exports and domestic sales were 2,136,615 tons, 613,020 tons and 1,467,031 tons, respectively, each down by as much as nearly 18% from a year earlier. Total domestic wire rod sales were 2,080,051 tons, down 16.7%, while domestic demand fell 7.3% to 2,607,605 tons. Meanwhile, the market share of imports from China rose to a record 34.3%. The downsizing at Pohang is not limited to wire rod. POSCO is also said to be reviewing a plan to reduce continuous casting machines at the No. 2 continuous casting plant. Continuous casters are core steelmaking equipment that continuously casts molten steel into semi-finished products such as slabs or billets. Because most rolling processes — including wire rod, plate and hot-rolled products — pass through continuous casting, cutting that equipment would signal a broader effort to streamline the overall production system alongside reduced wire rod output. A POSCO official said the No. 2 wire rod plant has scaled back operations after shifting workers from two of its four shift teams to other departments, but added that the company is lowering utilization and does not yet have plans to fully close the plant. 2026-02-08 17:03:00

HD Hyundai Heavy Industries to Showcase Advanced Warship Technology at Saudi Defense Expo HD Hyundai Heavy Industries is taking part in the Middle East’s largest defense exhibition in Saudi Arabia as it steps up efforts to win the kingdom’s next frigate program. The company said it will attend the 2026 World Defense Show, or WDS, in Riyadh from Feb. 8 through Feb. 12. It plans to run a joint exhibition area with LIG Nex1, Korea Aerospace Industries (KAI) and EOST to present advanced shipbuilding technology and maritime defense capabilities. Held every two years, WDS is expected to draw about 770 defense companies from 76 countries and more than 100,000 visitors this year, bringing together key decision-makers from the Middle East and the global defense market. Saudi Arabia is pursuing a naval modernization program that includes large-scale procurement of new frigates. HD Hyundai Heavy Industries said it will display eight types of vessels, including the 6,000-ton export frigate HDF-6000, designed to meet Saudi requirements. The company said it developed the HDF-6000 as an “Aegis destroyer-class frigate,” expanding its size and significantly upgrading onboard systems and performance based on experience building the Sejong the Great-class and Jeongjo the Great-class Aegis destroyers. At the show, HD Hyundai Heavy Industries plans to highlight a package approach for the Saudi naval modernization effort to officials from the Saudi Defense Ministry and navy. It said it will emphasize its design, construction and project-management capabilities, along with experience in local construction and maintenance, repair and overhaul, citing successful results at Peru’s SIMA shipyard. The company also said it will propose a phased localization plan tailored for shipbuilding in Saudi Arabia. If it wins a frigate order, it is considering gradually increasing the share of local construction for the HDF-6000 centered on the Saudi IMI shipyard, established through joint investment by HD Korea Shipbuilding & Offshore Engineering and Saudi state-owned company Aramco, among others. Separately, HD Hyundai Heavy Industries said it will sign a joint memorandum of understanding with Saudi Arabia’s Ministry of Investment and 12 South Korean companies, including LIG Nex1 and STX Engine, to build a local supply chain. The MOU aims to set cooperation measures under Saudi Arabia’s Industrial Participation Program, or IPP, and pursue joint entry into the Saudi market. Joo Won-ho, president of HD Hyundai Heavy Industries, said the company added strategic weight by presenting the HDF-6000, optimized for Saudi requirements, at the region’s largest defense exhibition. He said the company will do its best to win the next frigate program through local construction and industrial cooperation using IMI, the largest shipyard in the Middle East and North Africa. * This article has been translated by AI. 2026-02-08 09:33:00

POSCO Chair Chang In-hwa urges faster AI transformation in employee town hall POSCO Group Chairman Chang In-hwa met with about 70 Seoul-area employees Thursday at the POSCO Center for the company’s first employee communication event of the year, a “CEO empathy talk,” to discuss the group’s management philosophy. The session ran about 90 minutes, with a vision briefing by topic followed by open discussion. Chang told participants to prioritize communication and listening, devoting most of the time to debate and Q&A. Asked about the group’s core competitiveness, Chang said POSCO Group is “solid” while also “having wings for the future.” He said the liquefied natural gas (LNG)-centered energy business, along with steel and battery materials, is viewed as the group’s “Next Core,” and its role as a key profit source will be expanded. On the importance of corporate culture, Chang said, “No matter how great the vision and strategy are, what executes them is ultimately our organizational culture.” He added that “overwhelming results” come when employees focus on fundamentals with a spirit of challenge, and that change begins with “empathy,” with management and employees looking in the same direction. Discussion also focused on the group’s artificial intelligence transformation, or AX, strategy and how to use AI. Chang said the group should shift to a goal-driven “Mission Oriented AX” strategy aimed at intelligent autonomous manufacturing, top-level execution capability and new value creation. He said POSCO Group plans to raise the odds of success by concentrating on key tasks and to strengthen external cooperation to speed deployment. Asked about expanding AI and automation and the changes that could follow, Chang said, “AI is now social infrastructure, and the company that converts to AX faster will win.” He said employees’ familiarity with AI is key to introducing autonomous processes, and pledged to expand programs and training opportunities to build AI capabilities. Chang urged employees to become “the main players of change” leading the group, and to meet this year’s management goals through bold, fast execution. He also called on employees to make it a year of proactively protecting their own safety and that of colleagues. POSCO Group said it plans to continue the CEO town hall in the second and third quarters, focusing on Gwangyang and Pohang, and to link the events with employee invitations and site visits to create an environment more focused on delivering results.* This article has been translated by AI. 2026-02-06 15:03:00

Hanwha Ocean Tops 1 Trillion Won in Operating Profit After 3 Years, Labor Tensions Loom Hanwha Ocean has reached 1 trillion won in operating profit three years after its launch, strengthening earnings stability across Hanwha Group as the shipbuilder focuses on LNG carriers and specialty vessels. According to the industry on Tuesday, Hanwha Ocean said in a regulatory filing that its 2025 consolidated revenue rose to 12.6884 trillion won and operating profit climbed to 1.1091 trillion won as sales of commercial and specialty ships increased. Revenue was up 18% from a year earlier, and operating profit jumped 366%, driven by higher LNG carrier and specialty-ship sales. It was the first time the company’s annual operating profit topped 1 trillion won since 2018, and the first such result since it joined Hanwha Group. Hanwha Group acquired Daewoo Shipbuilding & Marine Engineering in 2023 and relaunched it as Hanwha Ocean. After joining the group, Hanwha Ocean accelerated restructuring, ending three straight years of losses that began in 2021. It posted 237.8 billion won in operating profit in 2024, then expanded that figure by more than fivefold in 2025 to re-enter the “1 trillion won club.” The company credited a strategy of focusing on higher-value ships, including LNG carriers, specialty vessels and defense ships, while screening out orders with uncertain profitability and improving cost structure and production efficiency. Hanwha Ocean said it was the only South Korean shipbuilder to post more than $10 billion in orders last year. It said it has booked total orders of $10.05 billion so far, including 13 LNG carriers, 20 very large crude carriers and 17 container ships. The rebound has also lifted Hanwha Group’s valuation, the report said, as investors refocused on the group’s core businesses in defense, energy and shipbuilding and shares of key affiliates rose, pushing the group’s market capitalization above 150 trillion won. Hanwha Ocean gave a positive outlook for this year, citing expectations for revenue growth as high ship prices for LNG carriers and other vessels persist, and for steady profitability as the share of high-margin projects increases. Labor-management relations remain a key challenge. The company has said it plans to be the first in the shipbuilding industry to pay the same performance bonuses to prime contractors and subcontractors, but tensions have not fully eased at worksites. Some have warned that any gap between the principle of equal bonuses and the actual payment structure could reignite conflict. A business group official said, “Hanwha Ocean’s normalization has led not only to improved results at an individual affiliate but also to a revaluation of the group as a whole,” adding, “Uncertainty in labor-management relations over performance bonuses could become a burden for Hanwha Ocean ahead of major projects.”* This article has been translated by AI. 2026-02-04 17:18:00

Hanwha Ocean's 2025 profit nearly quadruples on LNG carrier, naval ship demand SEOUL, February 04 (AJP) - Hanwha Ocean's operating profit nearly quadrupled in 2025 from a year earlier, driven by strong sales of liquefied natural gas (LNG) carriers and special-purpose vessels. In a regulatory filing on Wednesday, the South Korean shipbuilder reported revenue of 12.69 trillion won ($9.5 billion) for 2025, up 18 percent from the previous year, while operating profit surged 366 percent to 1.11 trillion won. The company attributed the earnings improvement to increased deliveries of high-margin LNG carriers and growth in its defense-related ship business. Stabilized production boosted the contribution of LNG carriers within its commercial ship segment, while revenue from special-purpose vessels edged higher as construction progressed smoothly on the first three Jangbogo-III Batch-II submarines. Operating profit also benefited from a product mix shift toward higher-value vessels, improved productivity following production stabilization and continued cost-reduction efforts. Hanwha Ocean said that it has secured orders worth $10.05 billion so far this year, including contracts for 13 LNG carriers, 20 very large crude carriers and 17 container ships. Order intake increased from $8.98 billion a year earlier despite global orders for its core ship types falling to below 70 percent in vessel numbers, the company said. The shipbuilder also gave a positive outlook for the year ahead. A company official said revenue growth is expected to continue as vessel prices, particularly for LNG carriers, remain elevated, while profitability should stay solid as revenue increasingly comes from higher-return projects. Profitability is also expected to improve further as full-scale production begins on additional naval programs, including the second Jangbogo-III Batch-II submarine and the fifth and sixth Ulsan-class Batch-III frigates, alongside efforts to secure large overseas contracts, the official said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 14:55:01

Korea Zinc to develop next-generation battery material for drones, robots SEOUL, February 04 (AJP) - Korea Zinc said on Wednesday it has signed partnerships with two materials companies to develop composite copper foil, a next-generation battery component used for lightweight, high-performance batteries for drones and humanoid robots. The partnered firms are Taesung and Neo Battery Materials Korea. Korea Zinc said the three firms will jointly develop advanced battery technologies using composite copper foil for small mobility applications. Composite copper foil, used as an anode current collector in batteries, incorporates a polymer core and requires less copper than conventional copper foil. The structure reduces weight while maintaining performance and offers cost and safety advantages, according to the company. However, commercialization still requires improvements in production yield and the establishment of a stable mass-production system. Under the agreement, the companies will cooperate across the full development chain, from materials engineering and manufacturing processes to feasibility studies and product demonstrations. Planned work includes verification of composite copper foil, process development for battery cells using the material, production of small prototype batteries, and testing prototype small mobility devices such as drones and robots powered by the new batteries. Korea Zinc said the partnership is expected to strengthen the companies’ competitiveness in the emerging composite copper foil market. Market research firm Wise Guy Reports forecasts the global market will grow to $10.18 billion by 2032 from $6.88 billion in 2023. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 14:02:28

Hanwha Ocean posts 2025 operating profit of 1.1091 trillion won, up 366% Hanwha Ocean said its 2025 operating profit nearly quadrupled as revenue from commercial ships and naval vessels rose sharply. In an earnings filing on Tuesday, the company said 2025 revenue rose 18% from a year earlier to 12.6884 trillion won, while operating profit jumped 366% to 1.1091 trillion won. Hanwha Ocean cited higher sales of liquefied natural gas carriers and special-purpose vessels. It said a larger share of high-margin LNG carrier revenue, supported by more stable production, led growth in its commercial ship division. Revenue at its special ship division also edged up as production of the Jangbogo-III Batch-II submarines Nos. 1, 2 and 3 stayed on schedule, contributing to overall sales growth. The company said operating profit improved sharply on a shift toward more profitable products, productivity gains from production stabilization and continued cost-cutting efforts. Hanwha Ocean said it has won orders totaling US$10.05 billion so far, including 13 LNG carriers, 20 very large crude carriers and 17 container ships. It said orders increased from US$8.98 billion a year earlier despite a drop to below 70% in global newbuild orders for its main ship types, measured by the number of vessels, citing aggressive sales efforts and technological competitiveness. The company also gave an upbeat outlook for this year. A company official said revenue is expected to grow as high ship prices for LNG carriers and other vessels strengthen, and profitability should remain solid as higher-margin projects make up a larger share of sales. The official added that profitability is expected to improve further as production ramps up on the Jangbogo-III Batch-II submarine No. 2 and the Ulsan-class Batch-III frigates Nos. 5 and 6, along with efforts to win major overseas projects. 2026-02-04 13:54:00

Korea Zinc teams up to commercialize composite copper foil for drone, robot batteries Korea Zinc is partnering with Taesung and Neo Battery Materials Korea to speed commercialization of composite copper foil, a next-generation anode current collector used in batteries. The company said Tuesday it signed a memorandum of understanding with the two firms on Jan. 28 at its Onsan smelter to develop high-performance battery technology using composite copper foil for drones and robots. Attendees included Korea Zinc Onsan smelter chief Kim Seung Hyun and R&D center chief Choi Heon Sik, Taesung CEO Kim Jong Hak, and Neo Battery Materials Korea Vice President Jeong Jun Sik. Compared with conventional copper foil made only of copper, composite copper foil uses less copper and has a polymer core, which the companies said improves price competitiveness. They also said it is lighter while maintaining high density and offers safety advantages. Korea Zinc said commercialization still requires stable yields and a mass-production system. Under the MOU, the three companies will work across the full process, from materials development and manufacturing to feasibility checks and demonstrations. Planned steps include optimizing and verifying material performance; evaluating and improving processes for battery cells and stacks using the foil; making small battery prototypes; and producing and testing prototypes of small mobility devices such as drones and robots. The companies aim to build capabilities to compete in the composite copper foil market. Wise Guy Reports forecasts the global market will grow about 1.5 times, to US$10.18 billion in 2032 from US$6.88 billion in 2023. A Korea Zinc official said that if the partners successfully demonstrate prototypes of small mobility devices such as drones using composite copper foil by the end of this year, it would be the first such case among South Korean companies. The official said the effort would help diversify the company’s battery materials portfolio and secure technology to respond to market changes.* This article has been translated by AI. 2026-02-04 11:24:00

Samsung Heavy deepens Gulf ties with Qatar shipyard agreement SEOUL, February 04 (AJP) - Samsung Heavy Industries said Wednesday it has signed sign an agreement with Qatar Shipyard Technology Solutions (QSTS), a state-owned shipyard operator, to explore joint projects involving eco-friendly technologies. QSTS, located in eastern Qatar, is a subsidiary of Nakilat, the country’s state-owned shipping company and the world’s largest operator of liquefied natural gas (LNG) carriers. The yard has completed repair work on roughly 2,000 vessels, including LNG carriers, Samsung Heavy said. Under the agreement, the two companies will initially cooperate in ship retrofits and after-market services. They will also explore joint projects involving eco-friendly technologies, including decarbonization and energy-saving systems, onboard carbon-capture equipment, small offshore projects and newbuilds of specialized vessels. “Business cooperation with QSTS will be an important milestone in expanding our global operations,” Namgung Geumseong, vice president and head of Samsung Heavy’s shipyard business, said in a press release. “We aim to further strengthen our competitiveness through active global partnerships.” The MOU was signed on the sidelines of LNG 2026, an industry conference currently being held in Doha. Samsung Heavy Chief Executive Choi Seong-an and other executives attending the event also held discussions on potential cooperation with global energy companies, including Qatar LNG and ExxonMobil. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 09:39:02

South Korea’s Smaller Shipbuilders Run Full Docks as Orders Lift Results South Korea’s shipbuilding boom is spreading beyond the biggest yards to smaller builders, with docks effectively running at full capacity as a wave of orders secures years of work. Industry data released Monday showed shipyard utilization at HJ Heavy Industries, Daehan Shipbuilding and K Shipbuilding topped 100% last year. Utilization above 100% indicates expanded working hours, including holiday and night shifts, as the companies ramp up production after recent contract wins. HJ Heavy Industries, which builds both naval and commercial vessels, has been building a steady order backlog. With wins in naval work, including U.S. Navy ship maintenance, repair and overhaul, its dock at the Yeongdo shipyard in Busan is already booked through 2028. Its shipbuilding order backlog rose to about 2.1026 trillion won as of the third quarter of last year, more than doubling from 915.1 billion won in 2021. Daehan Shipbuilding has accelerated construction on the back of orders since the start of the year. In early January, it secured four Suezmax crude oil tankers from new customers, then added two more of the same type from a European shipowner. The company plans to lift revenue quickly by increasing dock turnover. K Shipbuilding’s utilization also exceeded 110%, a sharp increase from 93.47% in 2024. The expanding backlogs have translated into stronger earnings. HJ Heavy Industries posted operating profit of 67 billion won last year, up 824.8% from a year earlier, as shipbuilding revenue rose and profitability improved. Daehan Shipbuilding maintained operating margins in the 20% range for five straight quarters. On a consolidated basis, its 2025 revenue was 1.2281 trillion won and operating profit was 294.1 billion won, up 14.2% and 86.1%, respectively, from the prior year. K Shipbuilding has not yet finalized last year’s full results, but analysts point to improving utilization as orders increase. Its cumulative operating profit through the third quarter of last year was 84.7 billion won, more than four times the 15.8 billion won recorded a year earlier. Early this year, it also signed new shipbuilding contracts for four 50,000-ton petrochemical product carriers. Some in the market say the gains at smaller shipbuilders reflect structural change rather than a temporary upswing, as they move away from low-priced volume orders and focus on selectively winning higher value-added vessel types. “Smaller shipbuilders used to mainly fill gaps left by larger yards, but they have moved into a phase of focusing on higher value-added ship types,” an industry official said. “The biggest change is that profitability is improving even as dock utilization rises.” 2026-02-03 18:03:00