POSCO STEELEON's Myanmar Subsidiary
MPCC, Myanmar
POSCO C&C
POSCO C&C
POSCO STEELEON's Myanmar subsidiary (MPCC, Myanmar POSCO C&C) is a galvanized/color-coated steel manufacturer located in Yangon, Myanmar, producing steel materials used for roofing to improve the living environment of Myanmar citizens and for factory walls for industrialization.
The Myanmar subsidiary was established as a joint venture with MEHL (Myanma Economic Holdings Ltd) as required by local Myanmar law at the time of entry in 1997.
* Ownership structure: POSCO STEELEON 70%, MEHL 30%
Myanmar Subsidiary (MPCC)
ESG Response Status
ESG Response Status
Regarding recent human rights issues in Myanmar, POSCO STEELEON is completely blocking any funds generated from the management of the Myanmar subsidiary from being involved in human rights issues.
Ultimately, we continue to make efforts to acquire MEHL's shares to end the joint venture structure. Simultaneously, through the shareholders' meeting of the Myanmar subsidiary in January 2021, we resolved not to pay dividends until human rights issues are resolved. Economic sanctions from various countries mean we are not currently paying rent for the leased factory site.
Based on its majority stake, POSCO STEELEON is conducting independent management and can continue to maintain this fund blockade. Although the regular operation of the Myanmar subsidiary is restricted under Myanmar's unstable political/economic situation, we are supporting employment for all personnel to ensure stable living conditions for locally hired employees in Myanmar.
This response of the Myanmar subsidiary was introduced in the official report (view) prepared during the visit of the UN Special Rapporteur on the situation of human rights in Myanmar in 2022. Although POSCO STEELEON's company name was not directly mentioned, the report, based on our meeting content, mentions that "efforts to prevent profits from flowing to the military regime while not harming the livelihoods of Myanmar employees are commendable."
We will continue to maintain a balance between preserving employment stability for local employees and ensuring that funds from the Myanmar subsidiary are not used for human rights issues.
Additionally, separate from these response measures to MEHL, in 2023, POSCO STEELEON conducted human rights due diligence through a third-party agency to check whether the Myanmar subsidiary independently complies with international human rights norms and local laws. As a result of selecting key indicators and conducting human rights due diligence, we are improving some areas that need supplementation, such as regular training and establishing new systems. This content will be disclosed through the Corporate Citizenship Report, published in 2024.
Thus, POSCO STEELEON continuously monitors and makes efforts to ensure that the Myanmar subsidiary's internal and external management activities do not violate human rights and transparently discloses this to stakeholders.
The products produced by the Myanmar subsidiary contribute to Myanmar's economic and social development by improving the living environment of Myanmar citizens, such as improving housing roofs and factory walls. In addition, the Myanmar subsidiary is carrying out various social contribution activities, such as building schools for vulnerable groups and installing water purification wells.
In the future, the Myanmar subsidiary will strive to grow as a beloved company by the local people, develop with the local community, and fulfill its corporate social responsibility.
Ultimately, we continue to make efforts to acquire MEHL's shares to end the joint venture structure. Simultaneously, through the shareholders' meeting of the Myanmar subsidiary in January 2021, we resolved not to pay dividends until human rights issues are resolved. Economic sanctions from various countries mean we are not currently paying rent for the leased factory site.
Based on its majority stake, POSCO STEELEON is conducting independent management and can continue to maintain this fund blockade. Although the regular operation of the Myanmar subsidiary is restricted under Myanmar's unstable political/economic situation, we are supporting employment for all personnel to ensure stable living conditions for locally hired employees in Myanmar.
This response of the Myanmar subsidiary was introduced in the official report (view) prepared during the visit of the UN Special Rapporteur on the situation of human rights in Myanmar in 2022. Although POSCO STEELEON's company name was not directly mentioned, the report, based on our meeting content, mentions that "efforts to prevent profits from flowing to the military regime while not harming the livelihoods of Myanmar employees are commendable."
We will continue to maintain a balance between preserving employment stability for local employees and ensuring that funds from the Myanmar subsidiary are not used for human rights issues.
Additionally, separate from these response measures to MEHL, in 2023, POSCO STEELEON conducted human rights due diligence through a third-party agency to check whether the Myanmar subsidiary independently complies with international human rights norms and local laws. As a result of selecting key indicators and conducting human rights due diligence, we are improving some areas that need supplementation, such as regular training and establishing new systems. This content will be disclosed through the Corporate Citizenship Report, published in 2024.
Thus, POSCO STEELEON continuously monitors and makes efforts to ensure that the Myanmar subsidiary's internal and external management activities do not violate human rights and transparently discloses this to stakeholders.
The products produced by the Myanmar subsidiary contribute to Myanmar's economic and social development by improving the living environment of Myanmar citizens, such as improving housing roofs and factory walls. In addition, the Myanmar subsidiary is carrying out various social contribution activities, such as building schools for vulnerable groups and installing water purification wells.
In the future, the Myanmar subsidiary will strive to grow as a beloved company by the local people, develop with the local community, and fulfill its corporate social responsibility.