POSCO International's traction motor core factory in Poland / Courtesy of POSCO International
Optimism is growing around POSCO International’s ability to generate meaningful revenue this year from its energy, material and food businesses, thanks to its efforts last year to complete value chains in the three core sectors.
In 2025, the trade and energy subsidiary of POSCO Group posted a record operating profit of 1.165 trillion won ($795 million), keeping its operating profit above 1 trillion won for the third consecutive year.
Securities analysts expect the company to sustain its growth momentum this year, citing its investments into building value chains across the energy, material and food sectors.
“With annual investments of more than 1.5 trillion won, the company is expected to secure solid growth momentum,” Mirae Asset Securities analyst Ryu Je-hyun said. “Aiming to become a platform player, it will aggressively expand assets and streamline operations this year.”
POSCO International’s focus on the three sectors has been attributed to an initiative from POSCO Group Chairman Chang In-hwa.
“The group’s energy business should strengthen its profitability and become the next core business linking the steel and material segments,” Chang said in his New Year’s address. “Through investment in expanding our Indonesian palm oil business, we have also diversified our income sources.”
Chang also called for the exploration of material demand in emerging markets, while emphasizing the importance of research and development of next-generation products.
POSCO International's liquefied natural gas terminal in Gwangyang, South Jeolla Province / Courtesy of POSCO International
In line with that initiative, POSCO International became the only Korean firm to sign a heads of agreement — a nonbinding document outlining basic terms of a partnership or transaction — last December with Glenfarne for the U.S. company-led Alaska liquefied natural gas (LNG) development project.
Source: Korea Times News
