URGENT UPDATE: POSCO International Corp. has just announced a significant investment of $862 million (1.26 trillion won) into Agpa Pte Ltd., solidifying its ownership at 100%. This move marks a pivotal moment for the South Korean company as it expands its influence in the Southeast Asian vegetable oil market.
The capital infusion, made through a rights offering subscription, underscores POSCO International’s commitment to its agri-food strategy initiated in 2011 with the development of palm plantations in Papua, Indonesia. Since then, the company has ramped up its operations, achieving 210,000 tons of palm oil production annually from its three extraction plants.
In a groundbreaking development for the company, POSCO International is also set to finalize a palm oil refining plant this month in collaboration with GS Caltex Corp. in Kalimantan, Indonesia. This facility will have a staggering annual capacity of 500,000 tons, aimed at producing bio feedstocks and edible oils for both Indonesia and neighboring Southeast Asian markets. The total investment for this state-of-the-art facility is 260 billion won.
The strategic partnership with GS Caltex, South Korea’s second-largest oil refiner, demonstrates POSCO International’s ambition to dominate the region’s palm oil sector. The refining plant will not only enhance the supply of cooking oil and eco-friendly raw materials but also leverage by-products, such as powder from crushed leftover pulp and shells, for use in cosmetics and detergents.
As the demand for sustainable and versatile palm oil products continues to surge, POSCO International’s aggressive expansion signals a transformative shift in the agri-food industry across Southeast Asia. This investment and new facilities are expected to create numerous jobs and stimulate local economies, highlighting the positive human impact of this corporate strategy.
With this latest capital injection and the imminent completion of the refining plant, all eyes will be on POSCO International as it navigates this rapidly evolving market landscape. Investors, industry analysts, and consumers alike are eager to see how these developments will reshape the future of palm oil production in the region.
Stay tuned for further updates on this developing story as POSCO International continues to make waves in the agricultural sector.
