UPDATE: POSCO International Corp. has made a significant move by injecting an additional $862 million into Agpa Pte Ltd., elevating its ownership stake in the Singapore-based firm to 100%. This urgent capital infusion, confirmed today, is part of POSCO’s strategy to strengthen its vegetable oil refining business in Southeast Asia.
The investment, amounting to 1.26 trillion won, was executed through a rights offering subscription. This strategic decision underscores POSCO International’s commitment to expanding its agri-food operations across the region, particularly focusing on palm oil production.
Since commencing palm plantation development in Papua, Indonesia in 2011, POSCO International has made significant strides, launching commercial production by 2016. Currently, the company operates three oil extraction plants with an annual output of 210,000 tons of palm oil, vital for cooking and eco-friendly products.
This month, POSCO International is also on track to finalize a palm oil refining plant in collaboration with GS Caltex Corp. in Kalimantan, Indonesia. The facility, boasting an impressive annual capacity of 500,000 tons, represents a combined investment of 260 billion won by the two companies. It will not only cater to the Indonesian market but also supply neighboring Southeast Asian countries with bio feedstocks and edible oils.
Palm oil, derived from the fruit of the palm oil tree, plays a crucial role in multiple sectors. After refining, the oil is commonly used for cooking and as a raw material in eco-friendly products. Additionally, the by-product powder created from the leftover pulp and shell post-extraction is utilized in cosmetics, soaps, and detergents, showcasing the diverse applications of this commodity.
As POSCO International continues to solidify its position in the agri-food market, industry experts and stakeholders are closely monitoring these developments. With the completion of the new refining plant imminent, all eyes are on how this will enhance the company’s production capabilities and impact the Southeast Asian market.
Stay tuned for further updates on POSCO International’s expansion efforts and its implications for the global agri-food landscape.
