POSCO has unveiled a new three-pronged business strategy

The company plans to diversify beyond its core steelmaking business

The South Korean industrial conglomerate POSCO Group plans to increase its operating profit sixfold by 2035 and expand its core business into lithium production and renewable energy. This was reported by The Korea Times.

In this way, the company aims to position itself as the leading national supplier of key industrial resources. POSCO Group Chairman Chang In-hwa unveiled the new ‘triple’ business portfolio during last week’s investor day.

With regard to its steelmaking operations, the group will launch full-scale investments overseas to overcome stagnation in the domestic market. By 2031, the group will expand its annual production capacity to 10 million tonnes in promising markets such as India, the US and Indonesia. POSCO plans to channel profits from the business into reinvestment in South Korea’s low-carbon transition.

With regard to energy resources, the group plans to implement strategies to expand the LNG value chain. In the renewable energy sector, the group will begin a full-scale push into domestic offshore wind energy markets and overseas solar energy markets.

By 2033, the group intends to increase its annual lithium production capacity to 173,000 tonnes and become one of the world’s top five producers.

POSCO plans to invest 16.7 trillion won (around $10.9 billion) in its three core business areas by 2028. The group expects to achieve net sales of 187 trillion won (over $120 billion) and an operating profit of 13.1 trillion won by 2035.

It is worth noting that this summer, POSCO completed the construction of South Korea’s largest electric arc furnace at its steelworks in Gwangyang (South Jeolla Province). The new facility has an annual production capacity of 2.5 million tonnes and is a key element of the company’s strategy to transition to low-carbon production.