BREAKING: POSCO International Corp., the energy and trading arm of South Korea’s steel giant POSCO Holdings Inc., has just announced a significant capital injection of $862 million into Agpa Pte Ltd. This move raises POSCO’s ownership in the Singapore-based firm, which oversees its vegetable oil refining operations in Southeast Asia, to a full 100%.
This urgent development is part of POSCO International’s strategy to expand its agri-food business across Southeast Asia, particularly in the palm oil sector. Since 2011, the company has been developing palm plantations in Papua, Indonesia, and commenced commercial production in 2016. Currently, POSCO operates three oil extraction plants, yielding an impressive 210,000 tons of palm oil annually.
In a related move, POSCO International is on track to complete a cutting-edge palm oil refining facility in partnership with GS Caltex Corp. in Kalimantan, Indonesia. This plant will boast an annual capacity of 500,000 tons and is expected to play a crucial role in producing bio feedstocks and edible oils for both the Indonesian market and neighboring Southeast Asian countries. The joint investment for this facility totals 260 billion won.
The implications of this investment extend beyond mere numbers. Palm oil, derived from the fruit of the palm oil tree, serves multiple purposes. After refining, it is utilized as cooking oil and eco-friendly raw materials. Additionally, the by-product powder from oil extraction is repurposed in cosmetics, soaps, and detergents, enhancing its economic significance.
As the market for palm oil continues to grow, this latest capital infusion reflects POSCO International’s commitment to solidifying its position in a competitive industry. The completion of the new refining plant is expected to generate substantial employment opportunities in the region, boosting local economies.
Stay tuned for further updates as POSCO International continues to reshape its agri-food strategy in the rapidly evolving Southeast Asian market. This investment marks a pivotal moment for the company and the region’s agricultural landscape.
