Gwangyang Steelworks Engages in Communication with Local Community Regarding Maintenance Subsidiary

Published 09 May.2023 20:41(KST)

Continuing 'Visiting Meetings' with Small Business Owners Until the Subsidiary Launch

POSCO has been actively communicating by holding consecutive meetings to alleviate the concerns of small business owners in the Gwangyang and Pohang areas regarding the launch of its maintenance subsidiary, and suppliers have responded positively to these efforts.

Previously, POSCO decided to establish a dedicated maintenance subsidiary to systematically accumulate maintenance technical expertise and streamline maintenance operations.

[Photo by Gwangyang Steelworks]

In particular, by employing partner company employees as subsidiary staff, more direct support to eliminate risks during maintenance work will be possible, which is expected to meet the social demand for enhancing corporate safety standards.

However, concerns were raised by local small business owners who have business relationships with these partner companies about a potential decrease in sales due to a reduction in transaction volume. In response, POSCO plans for the newly established maintenance subsidiary to thoroughly review detailed past transactions with partner companies to ensure that small business owners are not adversely affected.

Furthermore, regarding concerns that the transition to an integrated purchasing method through POSCO’s subsidiary, N2B, might impact small business owners, POSCO stated, “We are not considering transitioning to N2B,” and emphasized, “We will continue to make efforts to maintain sufficient communication with the local community in the future.”

By holding consecutive meetings with local small business owners, POSCO’s efforts toward mutual growth are expected to significantly contribute to alleviating concerns and resolving questions among small business owners.

In fact, as a result of active communication with small business owners who had such concerns, the majority of companies have expressed that their worries and anxieties have been alleviated.

A representative of a supplier said, “Although there were many questions before, through the communication time provided this time, we received a firm confirmation that existing contracts will be maintained, which greatly eased our concerns and anxieties,” and added, “We ask for continued interest and hope to have more opportunities for communication in the future.”

Another company representative said, “Most companies are rather expecting this as a good opportunity,” and expressed “surprise and gratitude that the subsidiary’s management personally visited to provide explanations.”

POSCO plans to continue holding communication-oriented meetings directly visiting local small business owners until the official launch of the maintenance subsidiary, maintaining active dialogue until the concerns of small business owners are fully alleviated.