2004 Preview
With global markets forecast to grow around 3% in 2004, brisk exports and facility investments will put Korea’s growth in the 4% range. While we expect this broad-based recovery to push global steel demand past 900 million tons, tight raw material supplies will constrain production growth, pushing up steel prices across the board. In 2004, we’ll be focusing on growth, competitiveness, and innovation as we take aim at sales of KRW 16 trillion.

Investing in growth
We’ll be investing over KRW 2 trillion in 2004 to boost annual crude steel output to 32 million tons by 2008. At Pohang, we’ll commission our first 1.5 million-ton capacity FINEX ironmaking plant. At Gwangyang, we’ll focus on the automobile industry by breaking ground for our fifth and sixth continuous galvanizing lines. In addition to joint ventures in China, we’ll be pursuing opportunities in India, Southeast Asia, and other markets with abundant natural resources.

Rising above the competition
We aim to boost our annual crude steel output to 29 million tons and finished steel production to 28 million tons by achieving an optimal material balance between our steelworks and eliminating manufacturing bottlenecks. We’ll be upgrading our distribution network and building an integrated marketing network to link our production bases at home and abroad. In addition to actively collaborating with our suppliers to develop iron ore and other resources, we’ll continue to expand our global R&D network through strategic alliances and partnerships.

Innovating to the next level
We continue to prepare for the workplace changes our new activity-based management system and integrated manufacturing network will bring when they come online at year-end. We’ll also be implementing projects that stimulate innovations in employee learning and corporate culture with a special focus on cross-functional projects as we expand our Six Sigma program.

In closing, our commitment to world-class products and governance, sustainable development, and community service continued to win the trust and respect of all our stakeholders in 2003, adding luster the POSCO brand. We hope you’ll join us as we continue to forge the future of steel in 2004.