GS Caltex, Korea’s second-largest oil refiner by sales, announced on Thursday that it has completed construction of a major palm oil refining facility in Indonesia, strengthening its position in the growing Asian biofuel market, reports The Korea Times.
The opening ceremony for the AGPA Refinery Complex (ARC), located in an industrial zone in Balikpapan, was held on Thursday. It was attended by GS Caltex CEO Hur Sae-hong and senior officials from the Indonesian government.
Built through a joint venture with Korea’s POSCO International, the refinery covers 300,000 square meters and required an investment of around 260 billion won ($177.2 million). According to GS Caltex, the facility can process crude palm oil into about 500,000 tons of biodiesel feedstock and edible oil each year.
As part of the partnership, POSCO International will supply palm oil from its plantations in Indonesia to the ARC facility and handle distribution of the refined products across Indonesia as well as in markets such as Korea and China.
