Seoul: GS Caltex Corp., South Korea's second-largest refiner by sales, has announced the completion of a significant palm oil refining facility in Indonesia. This development marks a strategic expansion of the company's footprint in the Asian biofuel market.

According to Yonhap News Agency, the new facility, named AGPA Refinery Complex (ARC), was inaugurated in an industrial complex in Balikpapan. The opening ceremony, held on Thursday, was attended by Hur Sae-hong, CEO of GS Caltex, alongside officials from the Indonesian government.

The refinery, built through a joint venture with South Korea's POSCO International Corp., represents an investment of approximately 260 billion won (US$177.2 million). Spanning 300,000 square meters, the facility is equipped to process crude palm oil into about 500,000 tons of biodiesel resource and edible oil annually.

Under the partnership, POSCO International will supply palm oil from its plantations in Indonesia to the ARC. The refined oil products are slated for distribution within Indonesia and other markets, including South Korea and China.