in response to rising uncertainties in the global steel industry, POSCO’s top management unveiled its strategy for future growth at the beginning of 2012.

According to the blueprint titled as the “POSCO Family Vision 2020,” POSCO will seek core business expansion from steel to energy and material.

In the course of developing the renewed growth vision, POSCO acquired independent power provider Kyungin Energy, now POSCO Energy, in 2005, plant builder Sung Jin Geotec in 2010 and Daewoo International, a trading company specializing in oil and gas exploration and production business overseas, in 2011.

In the 2012 CEO Forum, top management of the steel giant said the main agenda of the firm should be to maintain competitiveness in the steel business and to accelerate the results of the other two core businesses that the company has invested in. As a follow-up, POSCO reorganized itself to optimize results from its expanded core businesses from the latter part of 2012, while divesting its non-core businesses.

In its steel business, POSCO shifted its gear to high-value-added steel products like automobile steel plates and steel materials for energy to prop up the company’s profitability. Sales of those two high-margin steel products rose 3.4 percent and 9.3 percent, respectively, in 2012 on-year, according to the company.

POSCO said it has set the goal of expanding its global market share for automobile steel plates by 10 percent this year, while seeking 7 percent of the global steel market in the energy industry.

It added it will increase the share of such premium steel products in its product portfolio up to 20 percent this year.

The energy and material businesses also started showing results last year. The energy division of POSCO marked 2.9 trillion won ($2.6 billion) in sales in 2012, while the material and chemical division posted 3.6 trillion won ($3.2 billion) in sales. The engineering and construction division also posted 9.7 trillion won in sales last year.

The global economic downturn will not put the brakes on POSCO’s overseas expansion. The company said it will continue to push for steelwork construction projects in India, Indonesia and Brazil, while securing iron ores to run its steel mills.

POSCO sets its sales target this year at 66 trillion won consolidated, and 32 trillion won independently. Its steel production goal is 37 million tons.

By Seo Jee-yeon  (jyseo@heraldcorp.com)