SEOUL, Apr. 1 (Korea Bizwire) — POSCO said Sunday it will diversify its business portfolio to include infrastructure, biotechnology and new materials as South Korea’s No. 1 steelmaker marked the 50th anniversary of its foundation.
Laying out its long-term vision, the company said it aims to increase its sales by twentyfold to 500 trillion won (US$470.4 billion) by 2068 by enhancing new growth sectors.
The company posted 28.6 trillion won in sales last year, up from 41.6 billion won tallied in 1973, when it first started mass production.
It produced 37.2 million tons of steel in 2017, compared with 449,000 tons in 1973.
“In the next 50 years, POSCO has to keep up with the new business trend and make another success story in infrastructure and new energy sectors,” CEO Kwon Oh-joon Kwon said in an anniversary ceremony.
He said his company will strengthen non-steel businesses like infrastructure and new energy materials to sustain growth beyond its troubled current core sector.
By 2068, the company aims to reduce the proportion of steelmaking to its overall revenue to 40 percent from the current 80 percent.
The company hopes that its infrastructure-related units involving trade, construction, energy and information communications technology will take up 40 percent by the target year, while the new growth business, including energy storage materials and light materials, will account for the remaining 20 percent.