Latest news with #PoscoInternational
Korea Herald
24-06-2025
- Business
- Korea Herald
Posco International leads Korean traders' pivot from brokerage to energy value chains
Marking the 50th anniversary of the General Trading Company Designation System, Korean trading companies are accelerating efforts to upgrade their business models beyond traditional trade brokerage, expanding into full-cycle energy value chains spanning development, transportation, processing and sales. As part of the nation's major export push during the economic growth era of the 1960s and 1970s, a total of 13 companies were designated as 'general trading companies' and granted government tax and financial support. The designation system was abolished in 2009, as their role diminished with large conglomerates building their own overseas sales networks. In response, trading companies began transforming their business models, reducing reliance on traditional trading and expanding into new sectors such as resources and energy. Posco International, the trading and energy arm of steel giant Posco Group, stands at the forefront of this shift. Posco International has restructured its business portfolio around three sectors: energy, agro-resources and secondary battery materials. Rather than focusing on trade brokerage-based revenue, the company has built end-to-end value chains in each sector, aiming for greater operational control and long-term resilience. In 2024, its posted 32.34 trillion won ($23.7 billion) in revenue and 1.12 trillion won in operating profit, nearly 70 percent of which came from its three strategic sectors. The company maintained its momentum into the first quarter of 2025, with operating profit reaching 270.2 billion won, roughly half of which came from the energy sector. The energy business, now vertically integrated following a merger with Posco Energy in 2023, covers the full liquefied natural gas value chain. This includes upstream operations in Myanmar and Australia, stable LNG procurement through long-term supply deals with US-based Cheniere Energy, and the use of dedicated LNG carriers. The company's Gwangyang LNG terminal is undergoing expansion to raise total storage capacity to 1.33 million kiloliters. In agro-resources, the company focuses on both efficiency and sustainability. Its Indonesian palm oil subsidiary, PT. BIA, operates under the Roundtable on Sustainable Palm Oil certification and uses AI-powered smart farming systems. A joint project with GS Caltex, a Korean energy and chemicals company, is expected to complete a 500,000-ton biofuel plant in East Kalimantan this year, enabling the production of next-generation fuels such as sustainable aviation fuel. Posco International has also built a vertically integrated supply network in coordination with other Posco companies in the battery materials business. It holds a stake in the Mahenge mine in Tanzania, providing natural graphite for Posco Future M, its sister firm specializing in producing battery materials, and other affiliates within the group. By securing key upstream assets and consolidating operations, the company aims to buffer against external shocks, including commodity price volatility and geopolitical risks. "Posco International's pivot toward cash flow-oriented businesses marks a structural shift," said Shinhan Investment Analyst Park Kwang-rae. "It reflects a broader trend in Korea's trading sector toward greater value-chain integration and risk management."
Korea Herald
23-06-2025
- Business
- Korea Herald
Posco to sell off non-core overseas units in China, Vietnam
Posco Group is fast-tracking the restructuring of its non-core subsidiaries, divesting low-performing overseas businesses as part of a broader strategy to reallocate resources toward high-potential sectors, particularly battery materials. According to industry sources on Monday, Posco International, the trading and resources arm of Posco Group, has agreed to sell its entire stake in Suzhou Pohang Steel to Guangdong Wcan Magnetic Materials. The transaction, valued in the 40 billion won ($29 million) range, is expected to close by June 30. Founded in 2005, Suzhou Pohang Steel, a China steel processing subsidiary, specializes in processing electrical steel and manufacturing motor components, supplying Posco products throughout eastern China. 'It is true that the sale is part of our ongoing restructuring efforts, but final confirmation from the buyer and specific deal terms are still being finalized,' a Posco Group official said. The decision reflects Posco International's strategic assessment that continued operations in China's oversaturated steel market are no longer necessary. Deteriorating conditions for Korean companies in China, exacerbated by rising geopolitical tensions such as US-China trade friction, also contributed to the move. In a separate deal, Posco Engineering & Construction is negotiating the sale of its Vietnamese subsidiary, Posco E&C Vietnam. Busan-based auto parts maker Seoil Casting has been selected as the preferred bidder, and discussions over detailed terms are underway. The subsidiary has been involved in various local construction projects, including steel structures and plant facilities. The deal is estimated to be worth around 17 billion won. Established in 1995 as a joint venture between Posco Construction and Vietnamese state-owned Lilama, holding 70 percent and 30 percent stakes respectively, Posco E&C Vietnam became wholly owned by Posco after it acquired Lilama's stake in 2010. However, the unit has faced persistent challenges, with reports indicating it had fallen into complete capital erosion by mid-2023. The recent moves are part of a broader restructuring initiative announced last year, under which Posco plans to liquidate or divest more than 120 underperforming or non-essential businesses by 2026. The goal is to raise some 2.6 trillion won to reinvest into its core pillars: steel and battery materials. As of the first quarter, the group had already achieved 40 percent of the target.
Yahoo
18-06-2025
- Business
- Yahoo
Latest News In Energy Transition - Renewable Surge Revolutionizing Global Energy Investments and Capacity
Renewable energy is experiencing significant growth driven by technological advancements, supportive policies, and a global push for sustainability. Solar photovoltaic (PV) and wind energy, both onshore and offshore, are leading this transition, with forecasts indicating a substantial increase in investment, expected to reach $657.16 billion by 2030. The global installed capacity of renewable energy is projected to surge to 11.2 terawatts by 2035, underscoring the expanding role of renewables in the global energy mix. This expansion in the power sector highlights the increasing prevalence of renewable solutions and their critical role in achieving a sustainable energy future. Elsewhere in the market, was a notable mover up 6.9% and finishing the session at SAR262.00. At the same time, softened, down 7.7% to finish the session at ₩50,400. Posco International's joint venture in India's premium automotive steel market presents a compelling growth avenue amidst rising electric vehicle demand. Click to explore the full narrative on Posco International. Don't miss our Market Insights article titled "Opportunities In The Turbulent Transition To Greener Energy", uncovering urgent investment opportunities amid a challenging energy transition landscape. finished trading at $329.13 up 1.2%. ended the day unchanged at, $146.03. ended the day unchanged at, $175.25. Unlock more gems! Our Energy Transition Stocks screener has unearthed 155 more companies like WEG, Swiss Re and Eversource Energy for you to explore. Curious About Other Options? The end of cancer? These 23 emerging AI stocks are developing tech that will allow early idenification of life changing disesaes like cancer and Alzheimer's. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sources: Simply Wall St "Renewable Energy Strategic Intelligence Report 2025: Capacity to Surge to 11.2TW by 2035, Driven by Solar and Wind" from Research and Markets on GlobeNewswire (published 16 June 2025) Companies discussed in this article include SASE:2082 NasdaqGS:TSLA NYSE:CVX NasdaqGS:FSLR and KOSE:A047050. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
25-05-2025
- Business
- Korea Herald
Posco International launches first LNG carrier to strengthen energy logistics
Posco International, the trading and energy arm of Posco Group, held a naming ceremony on Friday for the group's first proprietary liquefied natural gas carrier, the HL Fortuna, at HD Hyundai Samho in Mokpo, South Jeolla Province. Named after the Roman goddess of fortune, the vessel marks a major milestone in Posco's strategy to reinforce its energy logistics infrastructure. As global energy supply chains grow increasingly volatile, the introduction of a dedicated LNG carrier is expected to provide a more stable and efficient transport solution. The project is a joint effort across the energy, shipbuilding and shipping industries: Posco International oversees LNG procurement and operations, HD Hyundai Samho constructed the vessel and H-Line Shipping will handle its operations. HL Fortuna is a 174,000-cubic-meter class LNG carrier capable of transporting approximately 78,000 tons of natural gas per voyage — enough to supply South Korea for 12 hours. The vessel is equipped with a dual-fuel propulsion system powered by LNG and a high-efficiency re-liquefaction system that recaptures evaporated gas during transit to minimize fuel loss. Scheduled to enter service in the second half of 2025, the HL Fortuna will make more than five round trips annually between Korea and the United States. In 2026, it will begin loading LNG at the Cheniere Terminal in Louisiana under Posco International's long-term procurement contracts. The company has also secured a major supply agreement with Mexico Pacific for an additional 700,000 tons of LNG annually. To support these contracts, Posco International plans to expand its fleet of dedicated carriers, further strengthening its integrated LNG value chain — from production and import to storage and power generation. 'The new LNG carrier strengthens our full LNG value chain and enhances our ability to respond to global protectionism. We plan to secure more carriers to improve supply stability and trading efficiency,' a Posco International spokesperson said.
Korea Herald
21-03-2025
- Business
- Korea Herald
Alaska governor to discuss LNG project with Korea next week
Alaska Gov. Mike Dunleavy is set to visit South Korea next week to encourage local energy companies to invest in Alaska's large-scale liquefied natural gas project. According to sources on Friday, Dunleavy will meet with South Korean officials on March 24 and 25, including Industry Minister Ahn Deok-geun, while coordinating meetings with Posco International, SK Innovation E&S, GS Energy and SeAH Steel, among others. Valued at approximately $44 billion, the Alaska LNG project plans to construct a 1,300-kilometer pipeline to transport natural gas from northern Alaska to the southern coast of the state for liquefaction and export. This is in line with the second Donald Trump administration's initiative to increase LNG exports, which could potentially improve its trade balance. On Thursday, US Department of the Interior announced plans to lift restrictions on the construction of LNG pipelines and industrial roads in Alaska and plans to transfer federal land to the state to facilitate building the pipelines. Korea is expected to use LNG exports from the US as a bargaining chip to mitigate potential tariffs, particularly on automobiles, along with the 25 percent duties on aluminum and steel that went into effect on March 12. While acknowledging the potential benefits, Korean companies area weighing their options for participating in the Alaska project carefully. 'Nothing has been decided yet. We need to consider the amount of potential investments as well as the business feasibility,' said an industry source who wished to remain anonymous. 'We anticipate further details during next week's meeting.' The companies scheduled to meet with Dunleavy, namely Posco International and SK Innovation E&S, have established a strong foothold in the LNG sector. Posco International was the first private Korean company to secure a large-scale gas field development agreement in Myanmar. SK Innovation E&S, which holds a 49.9 percent stake in the Woodford gas field in Oklahoma, has been an active player in the US LNG market for over a decade. With over 20 years of experience in LNG import and distribution, GS Energy operates seven large-scale LNG terminals in Korea. SeAH Steel, a specialist in steel pipes, expanded its local stainless steel pipe facilities last year in response to the fast-growing global LNG industry.
