POSCO International to Invest in Indonesian Palm Oil Business

POSCO International achieved the entire process of its palm oil operations by purchasing an Indonesian plantation company and finalizing the construction of a palm oil refinery in Southeast Asia. POSCO Group’s trading and energy branch announced that its subsidiary based in Singapore has bought a 65.72 percent share in Sampoerna Agro for $566 million. POSCO International is expected to invest up to $862 million in accordance with Indonesia’s financial regulations, which mandate a tender offer to minority investors for the remaining shares. POSCO International initiated the establishment of palm oil plantations in Papua, Indonesia in 2011 and launched full-scale production in 2016. Currently, the company manages three crude palm oil mills with a total annual output of 210,000 tons. With this acquisition, POSCO International has added 128,000 hectares to its existing Papua plantations, bringing its total global agricultural base to 150,000 hectares. The company anticipates immediate ...