South Korean Steel Makers Improve Operational Efficiency

South Korean steelmakers have embarked on a reorganization to boost productivity amid a protracted recession. Posco, a leading steel producer in the country, will create a team to support cooperation in all business areas - from new product development to production and sales /marketing.

In addition, the manufacturing process and quality control will be managed by a single team to improve product quality, while efforts to ensure workplace safety and environmental protection throughout the company will advance through the dispatch system. The manufacturing strategy team will be integrated with the technology strategy team, and a faster transition to the smart factory will be fueled by team management for planning and operations.

Other Korean steelmakers are also reforming their organization to improve operational efficiency. SeAH Steel recently added a new production planning team and also merged the production process team and product development center. It is also planned to improve sales by creating a team to support new projects. Dongkuk Steel Mill closed the steel sheet R&D team and instead created a steel alloy development team. In August, Hyundai Steel formed a team to explore new technologies and reorganized its purchasing department. The company is expected to announce additional structural changes along with an annual reshuffle at the end of the year.