Space Walk, Korea‘s largest walkable art installation, built by Posco (Posco)
Posco Group said Monday that it will launch a new holding firm in March with an aim to improve the sustainability of its core steelmaking business amid the global transition to a low-carbon economy.
Following shareholders’ approval of the holding company structure plans, the group will be split off into two entities -- Posco Holdings, the new holding company, and Posco, the steelmaking unit wholly owned by the holding firm.
The holding company will nurture new growth engine businesses and oversee key management decisions, including investments and R&D activities, while Posco plans to focus on its steel business with a greater emphasis on sustainability.
The steelmaker’s existing affiliates, such as Posco Chemical and Posco Energy, will also be placed under the wing of the holding firm.
“We see the need for an organizational change to balance our traditional steel business with the newly emerging sustainable materials market. A holding structure is essential to integrating more sustainability into our business.” said Posco Vice Chairman Kim Hak-dong.
The steelmaker hopes to leverage its transition to a holding structure to strengthen support for the local community.
The company has long contributed to its birthplace, the southern port city of Pohang, by building academic institutions such as Postech and Posco Educational Foundation, as well as tourism hotspots like Space Walk, Korea‘s largest walkable art installation, and Park 1538, a cultural complex. Posco also runs Changeup Ground in Pohang, a startup incubation center, to foster venture companies and create jobs in the area.
The new holding company is expected to push forward with corporate social responsibility by generating investment and creating jobs in new business areas. The firm says it will prioritize Pohang and Gwangyang as the hub for its new rechargeable battery and hydrogen business.
Other plans include scaling up its white hydrogen production facilities, hydrogen charging stations, high-purity nickel production plants, and factories for anode material production to strengthen local economies.
By Ahn Ju-hee (email@example.com