Marks a new growth phase in its agro business by securing seed capabilities

POSCO INTERNATIONAL (CEO LEE Kye-In) has completed the post-merger integration (PMI) of Sampoerna Agro, the Indonesian palm company it acquired last year, and has officially unveiled the new corporate identity (CI) for the company, which has been renamed Prime Agri Resources (PT.PAR).

The unveiling of the new CI marks the official launch of PT.PAR and underscores POSCO INTERNATIONAL’s establishment of a fully integrated palm business value chain spanning seed development, plantation operations, and refining.

On June 17, POSCO INTERNATIONAL held a ceremony to unveil PT.PAR’s new CI at the Raffles Hotel in Jakarta, Indonesia. PT.PAR completed the necessary legal procedures in Indonesia in January and finalized its official company name. This ceremony was held to officially announce the completion of the post-merger integration (PMI) and introduce the company’s new corporate identity to both internal and external stakeholders.

The event was attended by YOON Soon Gu, Ambassador of the Republic of Korea to Indonesia, Eddy Martono, Chairman of the Indonesian Palm Oil Association, and other major business partners and industry stakeholders.

POSCO INTERNATIONAL made an investment of approximately KRW 1.3 trillion between last year and early this year to acquire a controlling stake in Sampoerna Agro, expanding its palm plantation holdings by 128,000 hectares across Sumatra and Kalimantan. This acquisition provided POSCO INTERNATIONAL with a seed-specialized subsidiary securing the second-largest market share in Indonesia, along with advanced R&D capabilities, further enhancing the company’s competitiveness in the palm business.

Through this acquisition, POSCO INTERNATIONAL has expanded its business scope beyond its existing plantation-focused operations to include seed development capabilities. Going forward, PT.PAR will serve as the core production base for POSCO INTERNATIONAL’s palm business and as the hub of its seed business operations.

With the launch of PT.PAR, POSCO INTERNATIONAL has completed a three-company structure for its Indonesian palm business, comprising PT.BIA, PT.PAR, and PT.ARC. △PT.BIA operates palm plantations in the Papua region (26,000 ha), △PT.PAR conducts plantation and seed businesses in the Sumatra and Kalimantan regions (128,000 ha), and △PT.ARC is a palm oil refining joint venture established with GS Caltex (annual refining capacity of 500,000 tons).

Through this network, POSCO INTERNATIONAL has achieved vertical integration across the entire palm business value chain, from seed development and plantation operations to crude palm oil production, refined oil production, and the supply of biofuel feedstocks. The company plans to move beyond plantation operations and establish itself as a global food and materials platform covering a broad range of food and bio-based raw materials.

The combined area of palm plantations in Indonesia owned by POSCO INTERNATIONAL is 154,000 hectares, approximately 2.5 times the size of Seoul. As the benefits of its expanded production base and enhanced seed business capabilities are expected to materialize fully, the company aims to more than double its palm business operating profit this year compared to the previous year.

Meanwhile, the new PT.PAR CI features a palm tree symbol and organically flowing curves that represent the connectivity of the palm business value chain—from seed development and plantation operations to palm oil production—while reflecting the company’s vision for sustainable growth.

“The launch of PT.PAR and the unveiling of its new CI mark a new phase of growth in our agro business, driven by an expanded production base and enhanced seed business capabilities in the palm sector,” a POSCO INTERNATIONAL official stated. “We will continue to strengthen the competitiveness of our palm business and further solidify our position as a global food and materials platform.”

▲ POSCO INTERNATIONAL’s subsidiary PT.PAR is holding a Corporate Identity (CI) launch ceremony in Jakarta, Indonesia. (From the 8th person on the left in the back row: LEE Kye in, President of POSCO INTERNATIONAL; YOON Soon gu, Ambassador of the Republic of Korea to Indonesia; and Eddy Martono, Chairman of the Palm Oil Association.)

▲ POSCO INTERNATIONAL’s Indonesia Palm Business Portfolio

▲ New CI of PT.PAR (palm tree-inspired logo)

On the same day, the company completed construction of a palm oil refinery on East Kalimantan Island with an annual capacity of 500,000 tons, in partnership with GS Caltex

Since Chairman Jang In-Hwa took office, the group has accelerated efforts to secure future growth businesses while also contributing to strengthening national food security

POSCO INTERNATIONAL has completed a full value chain in its palm oil business—from palm seed development to producing palm oil for biofuel feedstock—by acquiring Sampoerna Agro, one of Indonesia’s leading palm companies, and inaugurating a new palm oil refinery in the country on the same day.

▲ Panoramic view of the Sampoerna Agro palm plantation in Indonesia, acquired by POSCO INTERNATIONAL

On November 19, POSCO INTERNATIONAL acquired shares in the Indonesian listed company Sampoerna Agro, securing management control and becoming its largest shareholder. Intended to expand its global palm business value chain, the investment for this acquisition is estimated at approximately KRW 1.3 trillion, based on the exchange rate at the time of disclosure.

Through this acquisition, POSCO INTERNATIONAL has added 128,000 hectares of plantations, which is more than double the size of Seoul, and now possesses a total global farming base of 150,000 hectares, including its existing plantations in Papua, Indonesia.

As a leading Indonesia-listed company, Sampoerna Agro operates palm plantations across Sumatra and Kalimantan islands, owning a palm seed subsidiary and research institute that rank second in domestic market share in Indonesia.

What is noticeable about the newly acquired plantations is that stable profits can be generated from the very beginning of the acquisition since the palm trees have already reached maturity. The palm plantation business is a long-term, high-return industry, as harvesting becomes possible three to four years after planting and production continues for over 20 years.

POSCO INTERNATIONAL began developing palm plantations in Papua in 2011, entered commercial production in 2016, and now operates three milling plants that produce 210,000 tons of palm oil annually. As the existing plantations have reached maturity, they have made a significant contribution to the group’s profitability, recording an average operating profit margin of 36% through last year.

On the same day, POSCO INTERNATIONAL held the completion ceremony for PT. ARC (PT. AGPA Refinery Complex), a palm oil refining joint venture established with GS Caltex in Balikpapan, East Kalimantan, Indonesia.

PT. ARC is owned 60% by POSCO INTERNATIONAL and 40% by GS Caltex, with a total investment of USD 210 million. The newly completed refinery has an annual refining capacity of 500,000 tons, equivalent to approximately 80% of Korea’s annual imports of refined palm oil.

▲ Group photo of key attendees at the inauguration ceremony of the East Kalimantan refining plant on the 19th. (From fourth left): Chun Seong-Rae, Head of Business Synergy at POSCO Holdings; Lee Seung-Hoon, Head of Supply & Trading at GS Caltex; Heo Se-Hong, GS Caltex CEO; Lee Kye-In, POSCO INTERNATIONAL CEO; Park Soo-Deok, Mayor of Balikpapan Rahmad Mas’ud, and Korean Ambassador to Indonesia; Moon Jin-Seok, Vice Chairman of KORINDO Group.

The ceremony was attended by approximately 100 key figures, including POSCO INTERNATIONAL CEO Lee Kye-In, GS Caltex CEO Heo Se-Hong, Indonesian Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, Mayor of Balikpapan Rahmad Mas’ud, and Korean Ambassador to Indonesia Park Soo-Deok. The refinery, which broke ground in May last year and has now been completed, will undergo trial operations and is scheduled to begin full production later this year.

POSCO INTERNATIONAL will supply crude palm oil produced from its plantations to PT. ARC, and the refined oil produced there will be sold both in the Indonesian domestic market and exported to South Korea, China, and other countries. GS Caltex plans to leverage its accumulated expertise to enhance the operational efficiency of the refining facilities and supply refined palm oil for biodiesel to the Korean market.

Going forward, the POSCO Group is expected to strengthen its competitive edge in the global palm oil market, helping to reduce Korea’s reliance on imported edible oils and establish a stable production and supply base for palm oil for enhanced national food security.

Since Chairman Jang In-Hwa took office, the POSCO Group has been actively seeking future growth businesses for stable generation of profits. The strengthening of the Indonesian palm oil business is part of the group’s broader infrastructure initiatives, supported by POSCO INTERNATIONAL’s extensive experience in overseas agro business.

Meanwhile, to bolster future competitiveness, the POSCO Group restructured its business portfolio last year into “Two Core (steel + secondary battery materials) + New Engine (new growth businesses)” and is executing strategic investments to preempt high-growth, high-return markets such as India and North America. In India, the group is pursuing the establishment of a local steel mill in partnership with the JSW Group. In September, to proactively respond to trade barriers and accelerate its entry into the North American market, it signed an MOU with Cleveland-Cliffs for cooperation in the steel business.