SEOUL, Dec. 8 (Korea Bizwire) — POSCO International Corp., the trading arm of South Korean steel giant POSCO, said Wednesday it has set up a holding company in Singapore to further expand its palm oil business overseas.
The holding firm, named AGPA, was established last month in the city state and process is under way to transfer to the holding company 85 percent of the stake it owns in the palm plantation in Indonesia, POSCO International said.
It will complete the transfer by the end of this year and plans to push for new investments and business expansion from next year, the company added.
The establishment of the Singapore-based holding firm came as POSCO International seeks to take advantage of the location as a financial and logistics hub where many international palm oil companies, like Wilmar International Ltd., are based, according to the company.
Through the holding firm, POSCO International will push to secure new palm plantations and ramp up investment in palm oil refining and bio fuel sectors, it said.