November 28, 2024

• 

CEO of Posco International Jeong Tak (Posco International)

Following a merger with Posco Energy, Posco International -- the general trading arm of Posco Group -- said Thursday that it is ready to reestablish itself as a company that will specialize in a slew of emerging business sectors, ranging from eco-friendly energy, steel to food.

During a ceremony held in Songdo Convensia in Incheon, Posco International announced its goals to aggressively target emerging business sectors and significantly raise its market value.

Specifically, Posco International said it will accelerate its energy business by developing extra mining areas in Malaysia and Indonesia. With the additional developments, the company said it is expecting to increase its amount of liquid gas reserves from 1.6 trillion cubic feet to 2.5 Tcf by 2030.

Posco International will also expand its projects to construct LNG storage tanks at its LNG terminals in Gwangyang, South Jeolla Province. The company said with the projects, the tanks' storage capacity will increase to 3.1 million kiloliters, which is four times greater than its current capacity.

For its clean energy initiatives, Posco International said it has set a goal to develop new offshore wind-power projects by 2027. The company said it is also set to expand its presence in the eco-friendly energy market with its carbon capture and storage projects that will be conducted at depleted, offshore oil and gas fields.

In the steel sector, Posco International announced that it plans to more than double its sales of eco-friendly steel to 3.9 million metric tons by 2030. The company will also push to bolster its ability to procure eco-friendly steel materials and secondary battery materials to amplify sales.

For its future eco-friendly mobility business, Posco International said it will establish a global production system, to allow the company to sell more than 7 million drive motor cores, a key component in electric vehicles. The development of the system will be backed by the help of its overseas factories in North America, Europe and China, according to Posco International.

The company further said it will bolster its efforts to strengthen its food business by securing global food resources. According to the company, Posco International's future aims include management of processed food products, and expansion of investments in AgTech, a compound word of agriculture and technology.

Posco International's efforts to foray into new business sectors comes as Posco International's market value has been stalling for over a decade. Posco International's market capitalization, which stood at 3.5 trillion won ($2.6 billion) in 2010, stands at about 3.8 trillion won, as of 2023.

In response, Vice Chairman of Posco Group Jeong Tak, who was appointed CEO of Posco International in January, said that ramping up the company's market value is of utmost need.

"Based on the new vision, I believe Posco International will create synergy (with Posco Energy) that exceeds expectations of a 'merger,'" said Posco Group's Chairman Choi Jeong-woo during the ceremony held in Incheon.

"I expect Posco International to lead the group's (Posco's) eco-friendly businesses -- including carbon neutrality -- and also ramp up the group's globalization as the advance guard of Posco's overseas businesses," he added.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)