POSCO DAEWOO Corporation (South Korea) has announced that it signed an agreement with the Orexim Group from Ukraine on the acquisition of 75% of shares in the grain export terminal being built at the Mykolaiv maritime merchandise port, the company has reported on its website. The financial terms of the deal were not disclosed.
It is expected that after the completion of construction in July 2019 the annual grain loading of the terminal will be 2.5 million tonnes, handling mostly corn, wheat and soybeans.
After acquiring the terminal, POSCO DAEWOO announced that it would be able to oversee the entire supply chain of grain produced in Ukraine and manage a more efficient inventory.
“With the latest deal, POSCO DAEWOO said it would be able to gradually oversee logistics through the purchase, inspection, storage and shipment of Ukrainian grain production, as well as reduce risk and ensure effective inventory management in accordance with individual demand,” the Korean company said.
The company plans to cover the infrastructure for the processing of agricultural products and logistics, in order to become the largest food resource production company in South Korea.
POSCO DAEWOO also said that the deal said the deal would also help contribute to Korea’s food security, since grain supplies to the country largely depend on exports, because the country’s self-sufficiency in corn and wheat is only 1%.
In March 2018, the Orexim Group launched the sixth stage of the Every terminal at Mykolaiv power, boosting the total loading to 1.6 million tonnes. Its core business is exports of agricultural products, port and logistic services.