UPDATE: POSCO International Corp. has just announced a significant capital injection of $862 million into Agpa Pte Ltd., solidifying its ownership to a full 100%. The investment, made through a rights offering subscription, marks a pivotal moment for the South Korean energy and trading giant in its quest to dominate the Southeast Asian vegetable oil market.
This urgent development comes as POSCO International intensifies its efforts in the agri-food sector, particularly in palm oil production. Since 2011, the company has been developing palm plantations in Papua, Indonesia, with commercial production commencing in 2016. Currently, POSCO International operates three oil extraction plants, generating an impressive 210,000 tons of palm oil annually.
In a related move, POSCO International is set to complete a cutting-edge palm oil refining plant in partnership with GS Caltex Corp. in Kalimantan, Indonesia, with a staggering annual capacity of 500,000 tons. This joint venture represents a combined investment of 260 billion won and aims to produce bio feedstocks and edible oils not only for the Indonesian market but also for neighboring Southeast Asian countries.
The strategic expansion into palm oil refining is critical for POSCO International, as palm oil is a versatile product widely used in cooking and as eco-friendly raw materials. The by-product powder, resulting from the oil extraction process, is also gaining attention for its applications in cosmetics, soaps, and detergents.
As the company moves forward with this ambitious plan, industry experts are closely watching how this investment will reshape the vegetable oil landscape in the region. POSCO International’s commitment to sustainable practices and production efficiency could set new standards in the agri-food industry.
With this latest development, POSCO International is not just enhancing its operational capacity; it is also positioning itself as a key player in the global agricultural market. The implications of this investment extend beyond financial metrics, impacting local economies and employment opportunities in Indonesia and throughout Southeast Asia.
Stay tuned for more updates as POSCO International continues to make waves in the agri-food sector. This investment is a clear signal of the company’s strategic vision and dedication to growth in one of the most critical commodities in the world today.
