POSCO Worldwide accomplished the complete worth chain of its palm oil enterprise by way of the acquisition of an Indonesian plantation firm and the completion of a palm oil refinery within the Southeast Asian nation.
The buying and selling and vitality arm of POSCO Group stated Thursday that its Singapore-based subsidiary acquired a 65.72 % stake in Sampoerna Agro for $566 million.
The entire funding is anticipated to achieve as much as $862 million, given Indonesia’s monetary rules requiring POSCO Worldwide to make a young supply for the remaining shares held by minority traders.
“With this acquisition, POSCO Worldwide has added 128,000 hectares to its present Papua plantations, bringing its whole world agricultural base to 150,000 hectares,” a POSCO Worldwide official stated.
POSCO Worldwide started growing palm oil plantations in Indonesia’s province of Papua in 2011 and began industrial manufacturing in 2016. It now operates three crude palm oil mills that produce a mixed 210,000 tons yearly.
As a result of the newly acquired plantations are already in full manufacturing, the corporate expects to generate secure earnings instantly.
“Our present plantations have posted a mean working margin of 36 %, making a powerful contribution to POSCO Group’s profitability,” the official added.
Employees unfold fertilizer at Sampoerna Agro’s palm oil plantation in Indonesia on this undated picture. Courtesy of POSCO Worldwide
On Wednesday, POSCO Worldwide and GS Caltex held a ceremony marking the completion of their three way partnership’s palm oil refinery in Indonesia. Trial operations will start quickly, with industrial manufacturing scheduled to start out by year-end.
The buying and selling agency and the oil refiner established the three way partnership in 2023, investing $210 million to assemble the refinery, which started in Might final yr. The ability has an annual refining capability of 500,000 tons — about 80 % of Korea’s yearly refined palm oil imports.
POSCO Worldwide plans to produce crude palm oil from its plantations to the refinery, which can produce refined oil on the market in Korea, Indonesia and China. GS Caltex will use its refining experience to spice up operational effectivity and provide refined palm oil for biodiesel within the Korean market.
“By strengthening our management within the world palm oil sector, POSCO Group goals to assist Korea cut back its reliance on imported edible oils and contribute to nationwide meals safety,” the official stated.
The corporate added that increasing its palm oil operations aligns with POSCO Group Chairman Chang In-hwa’s technique to pursue sustainable and future-oriented enterprise alternatives for secure long-term development.
