SG "Leap to the Only Nationwide Asphalt Concrete Specialist Company in Korea"

[Asia Economy Reporter Hyunseok Yoo] SG announced on the 11th that with the market opening to allow participation of mid-sized and large companies in the asphalt concrete industry, the company will focus on its core competence, 'Ascon (Asphalt Concrete),' and strategically expand into the national market.

The Ministry of SMEs and Startups announced an improved system through Notice No. 2021-94 on December 31 last year, allowing mid-sized asphalt concrete manufacturers to participate in public bids in Seoul, Gyeonggi, Incheon, and the Daejeon, Sejong, and Chungnam regions starting from 2022.

Accordingly, SG decided to fully divest its 'Ready-mixed Concrete' business, which is currently thriving in metropolitan urban development projects, and after innovatively restructuring its business, to concentrate the resulting cash liquidity on SG's foundation businesses of 'Ascon' and 'Eco-friendly Business' sectors.

As a forward base to expand its domestic Ascon market share, SG signed a contract on the 7th to acquire Daemyeong Ascon located in Sejong Special Self-Governing City. Sejong City, where about 60% of urban development is currently underway, is expected to have continuous development prospects in the future. Additionally, Daemyeong Ascon is located within a 30km radius of demand centers such as Daejeon City Hall, Chungbuk Provincial Office, and Cheongju City Hall, making it a foothold for expansion through mergers and acquisitions (M&A).

An SG official stated, “Starting with the acquisition of Daemyeong Ascon, we will execute aggressive M&A and accelerate the commercialization of EcoSteelAscon. Since the grace period for installing eco-friendly Ascon facilities ended in 2021, we plan to actively supply 'Eco-friendly Ascon Facilities (EGR+)' to domestic Ascon plants starting this year.”

Going forward, SG aims to enter overseas Ascon markets such as China and the United States and grow into a global Ascon company like France’s COLAS, which is considered an advanced asphalt country.

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