Posco Chairman Kwon Oh-joon met GE Chairman Jeffrey Immelt on Monday to discuss ways to add smart features to its major businesses including steelmaking.

Kwon was meeting the GE chief who was in Seoul for business. The two exchanged their views on the growing interest in digital transformation and the use of technology to radically improve performance, especially in the traditional manufacturing sector. 

They agreed to collaborate to devise a smart industrial solution by combining GE’s strength in equipment manufacturing and Posco’s leadership in the steel industry, the company said. They will seek business partnership in adding smart features to Posco’s material, energy and construction business. The meeting was held three days after Kwon was approved at a shareholders meeting to continue with his chairman post for a second term.

At a press conference Friday, the chairman said the company will prepare for the upcoming 50 years by emphasizing smart industry initiatives that utilize artificial intelligence, big data and the Internet of Things.

The researcher-turned-CEO has been seeking new opportunities to transform Posco’s heavy businesses ranging from steelmaking to construction, and nurture new businesses at the same time. The chairman traveled to Germany and US to visit head offices of Siemens and GE, leaders of digital transformation of industries last month, the company said.

Later in the afternoon, Kwon left for Jakarta for a bilateral economic forum and visited Krakatau Posco, a steel mill at Cilegon, Indonesia. The steel mill, capable of producing 3 million tons of steel, is Posco’s first overseas factory. Since 2013, Posco has secured the business competitiveness of the factory by cutting down costs and improving product quality, the company said. The world’s fourth-largest steelmaker saw 218.2 billion won in profit from its overseas operations.

By Cho Chung-un(christory@heraldcorp.com)