"POSCO Inter's Growth Strategy to Become a Top 10 Global Food Company"

Original Song Procurement, Value Chain Establishment, and New Business Development

POSCO International is pushing for a transformation into an 'eco-friendly integrated business company' based not only on its existing energy business but also on the food business.

As part of the growth strategy announced last April, the company has established a detailed plan for the food business. The goal is to become one of the top 10 major global food companies.

[Photo by POSCO International]

Under three main strategies?securing a global raw grain procurement system, establishing a stable food value chain, and fostering new Ag-Tech businesses?the company plans to secure 860,000 hectares of farmland (about 15 times the area of Seoul) by 2030, and build a system with an annual production volume of 7.1 million tons and a processing volume of 2.34 million tons.

First, it plans to secure raw grain assets through joint ventures with farming companies in major producing countries such as Australia, North America, and South America. Previously, in December last year, it established a partnership with Hancock in Australia and acquired a leading farming company in the Black Sea region.

The company plans to secure an annual production volume of 5 million tons in the Northern Hemisphere Black Sea region, and produce 1 million tons and 500,000 tons annually in South America and Australia, respectively, where harvest seasons are opposite. Additionally, it will produce about 50 tons annually in Central Asia and Southeast Asia, both directly and indirectly.

Through these raw grain assets, the company will also enter the processing sector, handling an annual volume of 2.34 million tons. Besides grains, it will continue its existing palm oil and cotton businesses.

[Photo by POSCO International]

The company entered the food business sector in 2015. It has since achieved approximately tenfold quantitative growth and has become the largest food company in Korea, handling an annual volume of 8 million tons (half of Korea's annual import volume).

A POSCO International official stated, “We will continue our bold challenge to become a global major food company by gradually completing the food business value chain, which is one of the seven core businesses of the POSCO Group. Along with quantitative and qualitative growth in the food business, we will also pursue public interest by contributing to national food security.”