Posco E&C President Han Sung-hee (left) poses with employees for a group photo during a May company meeting where he shared the Eco & Challenge vision. (Posco Eco & Challenge)
Construction and engineering firm Posco Eco & Challenge unveiled on Tuesday a new vision to multiply its corporate valuation tenfold by 2035, zeroing in on its renewed commitment to spearheading growth in the eco-friendly space.
Under the vision, it is aiming to reach 25 trillion won ($18.9 billion) in sales and 2 trillion won in operating profit by 2035, which would help boost its corporate value, the firm said.
“Using Posco E&C's sturdy foundation as the bedrock, we are laying down the blueprints for a sustainable future," Posco E&C President Han Sung-hee said.
"As master builders, we're drawing on our engineering experience to recalibrate our green initiatives, bolster our value chain, enhance profitability, and strategically grow our international footprint.”
To mark its 30th year anniversary next year, the company changed its name in March from Posco Engineering & Construction to Posco Eco & Challenge, reflecting its commitment to tackling environmental challenges for future generations.
To reach its goal, Posco E&C said it is concentrating on executing engineering, procurement and construction (EPC) tasks for the group's seven core businesses: steel, hydrogen, secondary battery materials, lithium/nickel, energy, construction and food.
A significant shift in the company's portfolio will see two primary areas of focus: "Eco Biz" and "Urban Biz." Eco Biz will work on carbon reduction and green energy infrastructure, while Urban Biz is aimed at building eco-resilient cities and smart infrastructure.
In the Eco Biz sector, the company plans to expand the low-carbon steel sector using its HyREX model and strengthen its position in the secondary battery market, with an emphasis on expansion in Korea and North America.
Collaborations with specialized technology firms are also in the pipeline, primed to explore offshore wind energy projects, compact nuclear energy facilities and hydrogen energy innovations.
In the Urban Biz category, the company’s experience with the Songdo International Business District project will inform its future conceptualization and development of smart cities.
To stay competitive, Posco E&C is looking to refine its business models and processes, by engaging in the EPC process earlier to tailor specific project requirements from the beginning.
The company also aims to invest in training experts in the area of new growth businesses and to identify synergistic business models for the future.
The new vision is in line with the larger strategy of Posco Group, which in July disclosed an investment of 121 trillion won by 2030, centering on core business areas including steel, secondary battery materials and hydrogen.
By Moon Joon-hyun (firstname.lastname@example.org)