POSCO Supports Growth of Agribusiness Venture Companies and Overseas Expansion of Siliceous Fertilizers

[Asia Economy Reporter Kim Hyewon] POSCO Group will collaborate with the Foundation of Agri. Tech. Commercialization & Transfer (FACT) to discover and nurture venture companies in the agricultural industry and to advance the overseas market for siliceous fertilizers utilizing steel by-products.

On the 12th, POSCO Group signed a Memorandum of Understanding (MOU) on "Discovering and Nurturing Agricultural Venture and Startup Companies and Cooperation for Overseas Commercialization of Steel By-products" with FACT at POSCO Changeup Ground in Pohang, Gyeongbuk. Attendees included Hong Youngho, Head of Venture Startup Division at FACT; Kim Daeup, Head of Hot Rolled Wire Marketing at POSCO; Park Sungjin, Head of Industry-Academia Cooperation at POSCO; and Koo Kyungryong, Head of Food Materials Division at POSCO International.

Under this MOU, POSCO will discover venture companies in the agricultural sector through the "POSCO Venture Platform," which involves group-affiliated industry-academia-research institutions such as POSTECH and POSCO Research Institute of Industrial Science & Technology (RIST). FACT will support commercialization by leveraging its expertise in agricultural science technology commercialization, expert networks, and commercialization support funds. Both parties plan to operate cooperative programs for successful commercialization and assist Korean agricultural venture companies in expanding overseas.

Head Hong stated, "For discovering and nurturing excellent agricultural ventures, win-win cooperation between large and small-medium enterprises, as exemplified by this collaboration with POSCO Group, is essential." Head Park said, "Through solid collaboration between POSCO Group’s excellent industry-academia-research infrastructure and FACT, we hope promising agricultural venture companies will emerge and grow into global companies, leading POSCO’s future new growth businesses."

POSCO Group and FACT also agreed to cooperate on overseas expansion of agricultural materials, focusing on siliceous fertilizers made from steel by-product water-quenched slag. Siliceous fertilizer made from water-quenched slag is produced by drying and crushing slag left after molten iron is extracted from a blast furnace into granules. It promotes photosynthesis in rice plants, strengthens stems, and increases yield. Additionally, the alkaline content in the fertilizer prevents soil acidification, and the iron ion (Fe3+) reduces methane emissions from paddy fields by about 15-20%, contributing to greenhouse gas reduction. Despite these advantages, the domestic siliceous fertilizer market has been shrinking due to decreased rice consumption, making overseas market development urgent.

POSCO plans to utilize POSCO International’s global food business network and capabilities to support overseas supply and local market development of siliceous fertilizers, focusing on Southeast Asia, where rice production is high. FACT will verify and support the efficacy and economic feasibility of siliceous fertilizers through field tests at local farms overseas. To this end, POSCO Group plans to distribute siliceous fertilizers free of charge to rice-purchasing farms near POSCO International’s Myanmar Rice Comprehensive Processing Center (RCP) by the end of this year.

Head Kim said, "Eco-friendly fertilizers using water-quenched slag increase yield and reduce greenhouse gases. With POSCO Group’s capabilities, we will assist domestic fertilizer companies’ exports and support overseas agricultural production increases to become a global model citizen, POSCO." Head Koo added, "By leveraging POSCO International’s global network, we will pioneer overseas markets for domestic fertilizer companies, increasing exports and contributing to local farmers’ income."

This content was produced with the assistance of AI translation services.