POSCO International's food business is sluggish, business expansion into Ukraine and Myanmar backfires - South Korea

General trading company POSCO International announced last year that it has acquired a stake in Grain Terminal Holdings (GTH), a holding company established in Singapore to make investments in grain-related businesses.
The remaining book value was treated as an impairment loss. GHT operates a cargo handling business and a grain terminal in Ukraine. However, the Ukrainian base was unable to operate normally due to the war with Russia.
The company's entry into the food industry began in 2011 when it acquired a palm oil company in Indonesia. In 2017, it received a contract from the Myanmar government to build a comprehensive rice processing plant.
In 2019, the company acquired a 75% stake in a grain export terminal in Ukraine with an annual shipping capacity of 2.5 million tons, and established a corporation.
However, the company's Ukrainian subsidiary is currently facing capital penalties. Myanmar, which continues to be in turmoil due to civil war, is also in a situation where it is difficult to actively pursue business.
For this reason, the company plans to focus on its palm oil business in Indonesia for the time being. As early as June of this year, the company will acquire Indonesia's potash together with major oil former seller GS Caltex.
The company will invest $210 million (USD) to build a palm oil processing plant in Manthan Timur Province, aiming to produce 500,000 tons of refined oil per year by 2025.
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