URGENT UPDATE: POSCO International Corp. has just announced a significant capital injection of $862 million into Agpa Pte Ltd., solidifying its ownership stake to 100%. This strategic move comes as POSCO aims to expand its foothold in the Southeast Asian vegetable oil refining market.
The investment, made through a rights offering subscription, highlights POSCO International’s commitment to boosting its agri-food business, particularly in Indonesia, where it began developing palm plantations in 2011. The company has ramped up operations since then, achieving commercial production by 2016 and currently operating three oil extraction plants that yield an impressive 210,000 tons of palm oil annually.
In an exciting development, POSCO International is on the brink of completing a state-of-the-art palm oil refining plant in partnership with GS Caltex Corp. in Kalimantan, Indonesia. This facility, with an annual capacity of 500,000 tons, represents a joint investment of 260 billion won. It is designed to produce bio feedstocks and edible oils for both the Indonesian and broader Southeast Asian markets.
Palm oil, derived from the fruit of the oil palm tree, is a versatile product widely used in cooking and sustainable raw materials. The by-products from the refining process, including crushed pulp and shell, are repurposed in the cosmetics, soap, and detergent industries, showcasing the holistic approach POSCO is taking towards sustainability.
This latest capital infusion and the upcoming plant completion underscore POSCO International’s aggressive strategy to dominate the agri-food sector in the region. As the demand for palm oil continues to rise globally, this move positions POSCO to capitalize on an expanding market.
With these developments unfolding rapidly, industry watchers are keenly observing how POSCO International’s enhanced capabilities will influence the Southeast Asian vegetable oil landscape. This investment not only signals a robust future for POSCO International but also promises to generate employment and stimulate economic growth in the regions where it operates.
Stay tuned for more updates as this story develops.
