Korean steel giant Posco Group said Tuesday that it is accelerating its drive to enhance shareholder value under its new corporate vision, “Materials for Tomorrow, Innovation for Excellence.”
The group has restructured its business around the “2 Core + New Engine” strategy, focusing on steel, energy materials and new businesses.
Posco Group is reviewing upstream investments and planning continued projects, including the construction of a 2.5 million-ton electric furnace at its Gwangyang Steelworks plant, targeting carbon reduction and cost efficiency.
In the energy materials sector, the steelmaker is using the current market downturn as an opportunity to secure high-quality resources, investing in lithium brine and mining projects to strengthen its supply chain. Recently completed facilities in Argentina and Korea — including lithium, recycling and silicon anode plants — are generating stable profits. The company also plans to continue portfolio rebalancing by stabilizing new facilities and scaling back less competitive operations.
To fund growth and shareholder returns, Posco Group completed 106 restructuring projects, securing 2.1 trillion won ($1.44 billion) in cash. Of that, 100 billion won was used for treasury share buybacks and cancellations. A three-year cancellation plan of 6 percent is underway.
At its shareholders’ meeting held Thursday, Posco Holdings approved a 10,000 won ($6.83) per-share dividend, maintaining its mid-term dividend policy despite challenging market conditions.
By Chung Hye-lim (hyelimchung@heraldcorp.com)
