Technology, Skills and Pro-Active Marketing Make POSCO 'Most Competitive Steelmaker'

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--POSCO (NYSE:PKX) (Pohang, South Korea) continues to hold its No. 1 rank as the "World's Most Competitive Steelmaker." This is the fourth consecutive year that the company has come out top in the evaluation by industry information service World Steel Dynamics (Englewood Cliffs, New Jersey), which bases industry rankings on 23 criteria, including production scale, profitability, technological innovation, pricing power, cost reduction, financial soundness and the securing of raw materials.

In the evaluation, POSCO received a score of 7.76 points out of a possible 10. Competitors scored 7.3 at best. NLMK (LSE:NLMK) (Lipetsk, Russia) ranked second, Severstal (MCX:CHMF.ME) (Moscow, Russia) third and JWS Steel (BSE:500228) fourth.

Steelmakers that own iron ore mines were evaluated highly for being able to secure raw materials. Nippon Steel & Sumitomo Metal (OTC:NSSMY) (Tokyo, Japan) ranked fifth, gaining high marks for synergy between the two merged companies and the decreasing value of the Japanese Yen.

ArcelorMittal (NYSE:MT) (Luxembourg), which ranks first on sheer production volume, was ranked 22nd overall.

Among Chinese steelmakers, Anshan Iron and Steel Group, which ranks third in total production, was ranked 29th. Boa Shan Steel, fourth in production, was ranked 10th. Wuhan Iron and Steel, fifth in production, was ranked 30th, Hebei Iron and Steel, second in production, was not included in the evaluation.

POSCO received a high evaluation based on innovative technological ability and cost competitiveness, attributed to employee skill levels and productivity. The steelmaking technologies FINEX, POIST and CEM were cited as positive factors. Cost reduction, profitability, the expansion of high value-added products, and expansions into up-and-coming markets also boosted POSCO's ranking. The company received a perfect 10 in the Mergers & Acquisitions and Strategic Alliance category, after scoring eight last year.

In the last four years, POSCO also has been ranked the "world's most admired company" in the steel sector (Fortune); 43rd globally and first domestically as the "world's most reputable company" (Forbes), and 30th in the "Global Sustainable Company ranking."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.