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POSCO International, part of POSCO Holdings, has acquired management control of Sampoerna Agro, a leading palm plantation operator in Indonesia, with an investment of approximately KRW 1.3 trillion on November 19. This acquisition expands POSCO’s palm plantation area by 128,000 hectares, bringing its total to around 150,000 hectares, which includes operations in Papua, Indonesia.
The newly acquired plantations are already mature and productive, enabling immediate profit generation. Additionally, POSCO launched a new palm oil refinery in East Kalimantan, Indonesia, through a joint venture with GS Caltex, with the refinery having an annual processing capacity of 500,000 tons and an investment of $210 million. This full integration from seed development to refining positions POSCO as a fully integrated operator in the palm oil market, aligning with its growth strategy.
Despite the acquisition, shares of PKX are down 3.1% year-to-date, while the industry average has risen by 10.3%.
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