POSCO International partners with Bartlett to enter U.S. grain market

POSCO International Vice Chairman Jeong Tak, left and Savage, the parent company of Bartlett, President Kirk Aubry. [Courtesy of POSCO International]

POSCO International, the trading arm of South Korea’s leading steelmaker, has made its mark in the world’s largest grain market by entering into a significant joint investment agreement with Bartlett and Company, a U.S. grain company based in Kansas City.

The partnership was officially sealed on Monday during a ceremony held with the presence of key figures from both companies, including POSCO International Vice Chairman Jeong Tak and Bartlett President Bob Knief.

Under the agreement, POSCO International and Bartlett will collaborate on grain procurement and soybean processing, aiming to establish a stable procurement system for U.S.-sourced grains, while jointly developing overseas export markets.

Building on the agreement’s framework, POSCO International plans to invest in Bartlett’s soybean processing corporation, whose construction is due to be completed within 2023. Both companies will also establish a joint venture to ensure a stable supply of raw grains.

Bartlett is a specialized grain company that owns around 15 grain terminals across the central United States. It procures grains such as corn, wheat, and soybeans that it distributes in the United States and Mexico, with the annual handling volume reaches some 10 million tons. The company also operates a U.S. flour milling facilities that lists among the top 10 in the country.

The United States is a major global grain producer, annually producing 550 million tons of corn, soybeans, and wheat, with 140 million tons earmarked for export, making it the world’s leading grain-producing nation.

POSCO International’s strategic vision is to establish a grain value chain within the United States, with the goal of handling 5 million tons of grains annually by 2030. Its overarching plan envisions a triangular grain belt connecting the Black Sea, North America, and Oceania.

In Ukraine, POSCO International is focusing on developing a grain terminal-based value chain to coincide with post-war reconstruction efforts. The company also aims to secure large-scale grain cultivation areas in Australia to complete the triangular grain belt.