April 25, 2024

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POSCO Daewoo, a trading company of Korea’s largest steelmaker, POSCO, said on Feb. 13 that it has purchased a grain export terminal in Ukraine in line with its ongoing effort to expand into the food business.

Under a contract with Ukrainian logistics company Orexim Group, POSCO Daewoo will acquire a 75-percent stake in the grain storage facility located at the country‘s largest seaport in the southern city of Mykolaiv, the company said.

The terminal, which will be completed in July, is to have an annual storage capacity of 2.5 million tons of grain, the company said. Most of the grain will be corn, wheat and soybeans.

A grain export terminal is a storage unit mainly used for storage ahead of overseas shipping. POSCO Daewoo said the terminal would allow the company to keep grain stocks when prices are low and ship the grain when prices rise.

The company forecasts Ukraine’s grain exports to expand to 75 million tons by 2027. The country currently ranks fourth and sixth in terms of global shipments of corn and wheat, respectively.

The company earlier announced structural changes to develop a new growth engine by expanding into new businesses, such as food and auto components.

By Ram Garikipati and newswires (ram@heraldcorp.com)