POSCO Secures Control of Sampoerna Agro in KRW 1.3T Deal

Core Insights - POSCO Holdings, Inc.'s unit POSCO International has established a fully integrated palm oil value chain, enhancing its agro-business operations [1] - The acquisition of Sampoerna Agro marks a significant expansion in POSCO's palm plantation footprint, increasing its total area to approximately 150,000 hectares [2][5] - The new palm oil refinery in East Kalimantan, Indonesia, will process 500,000 tons annually, bolstering POSCO's operational capacity [4][5] Expansion of Plantation Footprint - The acquisition of Sampoerna Agro adds 128,000 hectares to POSCO's palm plantation area, which is more than twice the size of Seoul [2] - The newly acquired plantations are fully mature and already producing fruit, allowing for immediate profit generation [2][5] Upstream Capabilities - Sampoerna Agro operates its own palm-seed subsidiary and research institute, holding the second-largest share in Indonesia's palm-seed development market [3] Refinery Development - A new palm oil refinery has been launched in East Kalimantan through a joint venture with GS Caltex, with POSCO holding a 60% stake [4] - The refinery's annual processing capacity of 500,000 tons is comparable to nearly 80% of South Korea's yearly refined palm oil imports [4] Strategic Alignment - The end-to-end integration from seed development to refining positions POSCO as a fully integrated palm oil operator, enhancing competitiveness and supporting national food security [5] - The production of refined palm oil for biodiesel aligns with POSCO's long-term growth strategy under its "Two Core + New Engine" roadmap [5]