POSCO International has completed a 2.5 million ton capacity grain terminal in Ukraine, expediting the trading firm's new business expansion, the group unit said Wednesday.
CEO Kim Young-sang, Orexim Group Chairman Yuri Budnyk and more than 300 company officials attended the completion ceremony of the terminal, based in the port of Mykolaiv in southern Ukraine.
Mykolaiv Oblast Governor Oleksandr Stadnik and Mykolaiv City Mayor Oleksandr Syenkevych also attended the ceremony, showing the Ukrainian government's interest in the project.
The terminal, in which POSCO International has a 75 percent stake, is one of the main export hubs around the Black Sea, capable of shipping up to 2.5 million tons of goods, including corn and wheat, a year.
POSCO International signed the purchase agreement for the terminal's operating rights with Orexim Group in February. POSCO International was POSCO Daewoo at the time.
Ukraine is one of the world's emerging grain-exporting countries, with its food production volume doubling to 77 million tons in 2017 from 40 million in 2007. Of this, exports increased fivefold to 43 million tons from 8.5 million tons during the same period, making the country the world's No. 4 exporter of corn and No. 6 for wheat.
By acquiring the rights, POSCO International can have logistics control over a significant amount of Ukrainian grain coming into the terminal. Approximately 22 percent of Ukraine's grain exports are shipped through Mykolaiv, according to POSCO International.