South Korean POSCO to put new strategies into effect

South Korean POSCO to put new strategies into effect

South Korean steelmaker giant POSCO has reportedly developed and carried into effect three marketing strategies with the purpose to improve customer specific marketing, increase sales of strategic products and enhance cost leadership. In line with these strategies POSCO will adjust its services according to every customer's requirements, increase its market share in Asia from 9% to 16% by 2007, make progress in technological development, upgrade its electrical steel sheet operations, and develop new products which will bring high profit to POSCO. Besides, company will continue to strive for productivity gain, reduction in stock levels and improvement in sales distribution. Meanwhile, according to market reports POSCO produced 2'446'000 tons crude steel during May which is 3.8% higher than May 2002. Company's sales grew up to 2'385'000 tons by 5.4% compared to previous year same month. While revenues increased 23.4% to approx. Won 1.2 billion (approx. $1 million), operating profit reached to Won 306.4 billion (approx. $259 million) with a 214.6% increase. With these results and a decrease in fixed costs POSCO gained despite poor market conditions, passed May expectations. Furthermore relying on the growing demand, in order to level its prices with international markets POSCO hiked prices of plate, wire, rebar, billet and bloom which are equivalent to 5.9% of POSCO's total sales volume. The new prices to help operating profit to grow up by Won 8.5 billion (approx. 7.2 million) will be effective June 16 onwards.