Lee Kye-in (eighth from left), president of POSCO International, poses for a commemorative photo with guests at the launch ceremony for the new corporate identity (CI) of PT.PAR, a POSCO International subsidiary, in Jakarta, Indonesia, on the 17th (local time). Photo courtesy of POSCO International
POSCO International (047050.KS) has completed the vertical integration of its palm oil business in Indonesia. The company finalized the post-merger integration (PMI) of Sampoerna Agro, which it acquired last year, building a value chain spanning seed development, plantation operations and refining.
POSCO International held an unveiling ceremony for the new corporate identity (CI) of PT.PAR (Prime Agri Resources) at the Raffles Hotel in Jakarta, Indonesia, on Monday, the company said Tuesday. The event was arranged to officially announce the new CI internally and externally following the completion of PMI.
PT.PAR’s new CI
From last year through early this year, POSCO International invested approximately 1.3 trillion won to acquire management control of Sampoerna Agro. Through this, the company secured palm plantations covering 128,000 hectares in the Sumatra and Kalimantan regions, along with a seed-specialized subsidiary ranked second in Indonesian market share and research and development (R&D) capabilities.
Through this acquisition, POSCO International has expanded its business scope beyond its existing plantation operation-centered business to include seed development capabilities. Going forward, PT.PAR will serve as the core production base for POSCO International’s palm business and the central pillar of its seed business capabilities.
With the launch of PT.PAR, POSCO International has completed a three-entity structure for its Indonesian palm business centered on PT.BIA, PT.PAR and PT.ARC. They are PT.BIA (26,000 hectares), which operates palm plantations in the Papua region; PT.PAR (128,000 hectares), which runs plantations and seed businesses in the Sumatra and Kalimantan regions; and PT.ARC (with an annual capacity of 500,000 tons), a palm oil refining entity jointly established with GS Caltex.
POSCO International plans to leap forward as a global food and materials platform encompassing the full range of food and bio-material raw materials. The total area of palm plantations POSCO International holds in Indonesia amounts to 154,000 hectares, about 2.5 times the area of Seoul. As the effects of expanded production bases and secured seed business capabilities take full effect, the company aims for its palm business operating profit this year to grow more than twofold from the previous year.
“The launch of PT.PAR and the unveiling of the new CI is a milestone marking the palm business’s entry into a new growth stage through expanded production bases and strengthened seed business capabilities,” a POSCO International official said. “We will continue to strengthen the competitiveness of our palm business to further expand our position as a global food and materials platform.”
POSCO International’s Indonesia palm oil business portfolio