POSCO Launches 6 Specialized Maintenance Subsidiaries by Bringing Together 26 Partner Companies

Over 4,500 Employees... Working Conditions Aligned with POSCO Group
Kim Hak-dong: "We Will Enter New Growth Businesses Such as Secondary Batteries"

POSCO launched a maintenance-specialized subsidiary on the 1st.

On this day, POSCO held a launch ceremony for the maintenance subsidiary at the Pohang Steelworks and Gwangyang Steelworks, attended by about 300 people including Vice Chairman Kim Hak-dong, President Lee Si-woo, and employees of the maintenance business company. Through asset transfer agreements with 26 existing maintenance partners, three companies were established each in Pohang and Gwangyang. The total number of employees is about 4,500. They publicly recruited partner company employees currently performing maintenance work and external experienced maintenance personnel. POSCO stated, "The working environment and labor conditions of the maintenance business company employees will be improved to a level similar to that of POSCO Group companies."

Previously, POSCO established maintenance plans for steelworks equipment, and partner companies carried out the maintenance work. Going forward, the maintenance business company will systematically perform maintenance activities in specialized technical fields such as billet and rolling process equipment, as well as electrical and instrumentation. POSCO plans to establish a 'Safety and Health Center' within the maintenance business company to create a safe working environment.

Employees of Pohang Steelworks conducting flood recovery work at the 2nd Hot Rolling Mill on November 23 last year [Photo by POSCO]

The company names were designated according to detailed specialized business sectors: POSCOPSTech and POSCOGYSTech responsible for billet process maintenance; POSCOPRTech and POSCOGYRTech responsible for rolling process maintenance; and POSCOPHSolution and POSCOGYSolution performing electrical and instrumentation (devices controlling measuring instruments such as thermometers and pressure gauges) maintenance. PS stands for Pohang Steel. PR stands for Pohang Rolling, PH for PoHang, GYS for GwangYang Steel, GYR for GwangYang Rolling, and GY for GwangYang.

POSCO has been promoting the establishment of the maintenance companies since March this year. POSCO said, "During last year's flood recovery process at Pohang Steelworks, we once again recognized the importance of maintenance technology and maintenance systems." They added, "Also, amid rapid paradigm shifts such as the transition to smart factories applying artificial intelligence (AI) and the introduction of low-carbon steelmaking processes, we judged that it is essential to move away from the existing maintenance system of many small-scale partners with fewer than 200 employees to foster specialization and scaling up."

Vice Chairman Kim Hak-dong, who attended the launch ceremony, said, "In the mid to long term, the maintenance business company plans to expand into maintenance businesses for POSCO's global sites and new growth businesses of the POSCO Group such as secondary battery materials," and added, "We will create POSCO's future vision toward becoming a 100-year company together with the maintenance business company as a specialized maintenance partner."

Through the launch of this maintenance business company, POSCO expects to expand quality jobs in the local community and bring new vitality to the region through the influx and settlement of excellent talent. They plan to secure and nurture local talent by signing a 'Local Talent Recruitment Business Agreement' with nearby major universities. Social contribution activities, which had been conducted at the small partner company level, will also be operated in an integrated manner. POSCO stated that it will continue business relationships with local small business owners related to the existing partner companies.

This content was produced with the assistance of AI translation services.