On July 2, POSCO Group held its "CEO Investor Day," announcing the establishment of a "Triple Core" system encompassing industrial resources (steel), strategic resources (lithium, cathodes, anodes, rare earths), and energy resources (LNG, renewable energy).
Chairman Jang In-hwa addressed investors, stating, "Given the increasing external uncertainties due to supply chain instability and accelerated low-carbon transitions, now is the time to boldly innovate our business portfolio to create new growth opportunities. We will lead the expansion of our business into resources, following steel and materials, to enhance national industrial security and strengthen supply chains."
The group also set a target of achieving a combined revenue of 187 trillion won and an operating profit of 13.1 trillion won by 2035.
POSCO Group outlined its long-term plans for its lithium business, aiming to establish a production capacity of 173,000 tons annually by 2033 and to rank among the top five global lithium companies. By 2035, it expects to generate over 1.8 trillion won in operating profit from its lithium operations alone.
The company plans to develop rare earths, essential minerals for the electric vehicle and robotics industries, as well as rare and specialty gases, as strategic resources to support future industrial supply chain stabilization.
In the steel sector, facing stagnant domestic demand, POSCO Group will accelerate overseas growth investments. The company aims to expand its overseas production capacity to 10 million tons by 2031, focusing on profitable markets such as India, the United States, and Indonesia. Profits from international operations will be reinvested in domestic low-carbon transitions to create a virtuous cycle.
The energy resources sector, now a core business, will focus on achieving both profitability and sustainability. The LNG business will continue its expansion strategy across the value chain, while the company plans to increase trading volumes in response to global shipping trends. The renewable energy sector will intensify its entry into domestic offshore wind and overseas solar markets to enhance national energy security.
In new business areas, POSCO Group will leverage its experience in equipment automation and intelligence from its steel operations, along with extensive field data, to commercialize physical AI for process industries.
To enhance the execution of its business portfolio transformation, POSCO Group plans to invest 16.7 trillion won in future growth over the next three years, from 2026 to 2028.
POSCO Holdings, the parent company, aims to optimize its stake in publicly listed subsidiaries to around 50% to address ongoing undervaluation in the market. The funds raised will be focused on strategic resource investment projects directly managed by POSCO Holdings. Additionally, 10% of the proceeds from asset sales will be used for share buybacks and retirements to enhance shareholder value.
Following the domestic event, POSCO Group will hold CEO Investor Days in Singapore on July 6 and Hong Kong on July 8 to strengthen communication with investors. The company plans to expand its engagement with the market to enhance corporate value.
Chairman Jang previously identified "overwhelming execution" and "performance creation" as key management themes for the group in January.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.