POSCO International Corp., the energy and trading subsidiary of South Korea’s steel giant POSCO Group, is poised for a significant global expansion in 2024. This ambitious move comes on the heels of an expected record-breaking operating profit for the previous year. The company’s focus will be on three key sectors: electric vehicle (EV) components, eco-friendly energy exploration, and grain trading.
In the EV sector, POSCO International plans to establish two additional plants for producing drive motor cores, critical components for EVs and hybrid vehicles. These new facilities in Mexico and Poland will expand POSCO’s manufacturing capacity, bringing the total number of its drive motor core factories to seven worldwide. By 2030, these plants are expected to collectively produce 7 million motor core units annually, aiming to capture over 10% of the market share.
In the food trading business, POSCO International is bolstering its presence by investing in U.S.-based Bartlett and Company’s soybean processing and forming a joint venture for raw grain and flour procurement. The company also aims to enhance grain security by establishing production bases across hemispheres. A notable venture includes a palm oil refinery in Indonesia, in collaboration with GS Caltex Corp., with a joint investment of $210 million.
In the energy domain, accounting for 12.8% of the company’s net sales, POSCO International is expanding its international footprint. The company is set to secure multi-billion dollar rights for natural gas exploration and production in Indonesia, adding to its existing ventures in Myanmar, Malaysia, and Australia. Through its joint venture Senex Energy with Hancock Prospecting Pty Ltd, it plans to triple gas processing capacity in Australia by 2025, with an eye on liquefying gas for export to South Korea.
Additionally, POSCO is venturing into the renewable energy sector, specifically offshore wind power. Last year, the company signed an MOU with Copenhagen Infrastructure Partners (CIP) to collaborate on offshore wind and green hydrogen projects.
This multifaceted expansion strategy reflects POSCO International’s commitment to diversifying its global business portfolio, with 87.2% of its net sales already coming from international operations. As it embarks on these ambitious projects, POSCO International is positioning itself as a key player in the evolving landscape of EV manufacturing, renewable energy, and global food security.
