Wedoany.com Report-Nov. 28, POSCO INTERNATIONAL has established a complete palm oil value chain by simultaneously acquiring Indonesia’s Sampoerna Agro and inaugurating a new refining complex in the country on 19 November.

The company secured management control of listed Indonesian producer Sampoerna Agro through a KRW 1.3 trillion share purchase, becoming its largest shareholder. The acquisition adds 128,000 hectares of mature palm plantations in Sumatra and Kalimantan, bringing POSCO INTERNATIONAL’s total global plantation area to 150,000 hectares. Sampoerna Agro also operates a leading palm seed research institute and seed subsidiary with the second-largest domestic market share in Indonesia.

The newly acquired plantations are already at peak productivity, allowing immediate revenue generation. Palm trees typically reach harvest maturity three to four years after planting and remain productive for over 20 years.

On the same day, POSCO INTERNATIONAL and joint-venture partner GS Caltex (60 percent / 40 percent ownership) held the completion ceremony for PT. ARC (PT. AGPA Refinery Complex) in Balikpapan, East Kalimantan. Built with a $210 million investment, the facility has an annual refining capacity of 500,000 tonnes – equivalent to roughly 80 percent of South Korea’s yearly refined palm oil imports.

Attendees included POSCO INTERNATIONAL CEO Lee Kye-In, GS Caltex CEO Heo Se-Hong, Indonesian Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, Balikpapan Mayor Rahmad Mas’ud, and Korean Ambassador to Indonesia Park Soo-Deok. Trial operations are underway, with full commercial production scheduled to start later this year.

Crude palm oil from POSCO INTERNATIONAL’s plantations will supply the refinery. Refined output will serve the Indonesian domestic market and be exported to South Korea, China, and other countries. GS Caltex will apply its refining expertise to optimise operations and supply biodiesel feedstock to the Korean market.

POSCO INTERNATIONAL first entered the palm sector in 2011 with plantations in Papua, Indonesia, reaching commercial production in 2016. Its existing three mills currently produce 210,000 tonnes of crude palm oil annually with an average operating margin of 36 percent through last year.

The integrated value chain – from seed development and cultivation to refining and distribution – strengthens POSCO Group’s position in the global palm oil industry and supports stable supply of edible oil and biofuel feedstock for South Korea.