UPDATE: In a bold move, POSCO International Corp. has just announced a massive capital injection of $862 million (1.26 trillion won) into Singapore-based Agpa Pte Ltd., solidifying its control over the Southeast Asian vegetable oil refining sector. This funding, acquired through a rights offering subscription, elevates POSCO International’s ownership in Agpa to 100%.
This significant financial commitment comes as POSCO International ramps up its operations in the agri-food industry, particularly in palm oil production. The company has been actively developing palm plantations in Papua, Indonesia, since 2011, marking a strategic effort to expand its agricultural footprint in the region. By 2016, POSCO began commercial production, and it currently boasts three oil extraction plants capable of producing 210,000 tons of palm oil annually.
In a related development, POSCO International is set to complete a state-of-the-art palm oil refining plant in partnership with GS Caltex Corp this month in Kalimantan, Indonesia. This facility will have an impressive annual capacity of 500,000 tons and is crucial for enhancing the production of bio feedstocks and edible oils targeted at both the Indonesian market and surrounding Southeast Asian countries. The joint investment totals 260 billion won.
The palm oil extracted from these operations plays a pivotal role in the global market, serving as a key ingredient in cooking oils and as a sustainable raw material for various products. The by-products, such as powder from the leftover pulp and shell post-extraction, are also repurposed for use in cosmetics, soaps, and detergents, adding further value to the operation.
As POSCO International continues to expand its agricultural ventures, the implications for the Southeast Asian economy and the global palm oil market are significant. This latest investment underscores the company’s commitment to enhancing its presence in the agri-food sector and responding to the rising global demand for palm oil products.
Stay tuned for more updates on this developing story as POSCO International aims to dominate the vegetable oil market in Southeast Asia.
