BREAKING: POSCO International Corp. has just announced a significant capital injection of $862 million into Agpa Pte Ltd., securing full ownership of the Singapore-based holding company. This 1.26 trillion won investment was made through a rights offering subscription, elevating POSCO’s stake in Agpa to 100%.
This urgent investment comes as POSCO International accelerates its expansion in the Southeast Asian agri-food market, particularly in palm oil production. The company has been developing palm plantations in Papua, Indonesia, since 2011, and began commercial production in 2016. Currently, it operates three oil extraction plants, collectively producing 210,000 tons of palm oil annually.
In a move set to further boost production, POSCO International is on track to complete a new palm oil refining plant in partnership with GS Caltex Corp. in Kalimantan, Indonesia. This facility, with an impressive annual capacity of 500,000 tons, represents a total investment of 260 billion won. It aims to produce bio feedstocks and edible oils, catering not only to the Indonesian market but also to neighboring Southeast Asian countries.
The strategic focus on palm oil is vital, as the oil extracted from palm fruit is widely used as cooking oil and eco-friendly raw materials. Additionally, by-products from the refining process are utilized in cosmetics, soaps, and detergents, showcasing the extensive application of this industry.
Officials emphasize that this latest investment signals POSCO International’s commitment to strengthening its position in the global agri-food sector. With the rising demand for sustainable and versatile products, this bold move is expected to create substantial economic opportunities in the region.
Stay tuned for more updates as POSCO International continues to reshape the landscape of the agri-food industry in Southeast Asia.
