POSCO DAEWOO Expands Grain Business in Myanmar2017.01.22
POSCO DAEWOO Expands Grain Business in Myanmar
- Company wins the right to build a rice processing complex
- Additional facilities planned to cover for each level of value chain in grain
- Working to become major global grain trader, handling up to 10 million tons
of grain a year, by 2020.
POSCO DAEWOO is expanding its grain business as a new growth engine.
South Korea’s biggest trading company recently won the right to build and operate a rice processing complex (RPC) from the Myanmar government. This would be a landmark deal in the company’s mid- and long-term strategy under which the grain business is considered as a key driver for the company’s growth.
The RPC is an integrated rice-processing facility that carries out drying, polishing and quality tests and sale of harvested rice in the same facility. POSCO DAEWOO has been discussing with Myanmar government in order to secure land for the facility since Myanmar opened its market to foreign investors in 2011.
Under the deal, POSCO DAEWOO will build and operate a RPC with annual processing capacity of up to 100,000 tons in Twante, a river-front town between Yangon’s commercial port and Myanmar’s major rice area in Ayeyarwady Division.
The facility will be built by 2018. This will make it possible for POSCO DAEWOO to grow and sell Indica-type rice in Europe, the Middle East, Africa, China and Russia.
In its mid- and long-term strategy, POSCO DAEWOO will build additional infrastructures dedicated to grain production, processing, and storage and trading. This will allow the company to handle the entire value chain of grain trading.
“Winning the right to build the processing facility has paved the way for the company to bolster its presence as a grain trader,” said a POSCO DAEWOO official. “We will step up efforts to become the world’s major grain trader, handling up to 10 million tons of grain a year, by 2020.”
Meanwhile, POSCO DAEWOO has been developing a palm tree farm in Indonesia since 2011 and plans to start producing and exporting palm oil this year.
The company will also build storage and processing facilities in the world’s major grain areas and ports.
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