SG Establishes Local Subsidiary in Ukraine... Reconstruction Project Kicks Off

The SGI inspection team visited the Ukrainian Reconstruction Department to mutually discuss the promotion of road restoration projects. / Photo by SGI

Asphalt manufacturing company SG (CEO Park Chang-ho) has decided to establish a local subsidiary in Ukraine. SG dispatched a due diligence team to the site to meet with key figures from the Ukrainian government and businesses, aiming to solidify policy support and cooperative relationships based on mutual trust, covering everything from asphalt manufacturing to paving work.

On the 18th, SG held a board meeting and approved the agenda to establish a new local corporation in Ukraine, tentatively named "USG." SG will invest 9.07 billion KRW in the new corporation, acquiring 100% of USG's shares and securing management rights.

The company’s due diligence team also held talks with Olek Ptodorenko, Director of the Road Department at the Ministry of Reconstruction in Ukraine. At the meeting, Director Ptodorenko said, "We expect that the Eco Steel Asphalt products manufactured with SG's technology will make a significant leap in Ukraine's road paving sector by entering the Ukrainian market," and added, "We promise active policy support for local settlement in Ukraine and hope for the swift restoration of roads damaged by the war."

Through the official launch of USG, SG plans to quickly secure new business opportunities such as reconstruction and road restoration in war-affected Ukraine and strengthen competitiveness through efficient decision-making. To this end, Andrey Nazarenko, Chairman of Argo Invest Group, has been appointed as CEO of USG. Chairman Andrey Nazarenko, who also served at the Embassy of Ukraine in Korea for five years, is known as an expert in international economics, having served as Governor of Kirovohrad Province and First Deputy Prime Minister of Ukraine.

SG has independently developed asphalt manufacturing technology using industrial byproduct slag to produce eco-friendly "Eco Steel Asphalt" products. In particular, Ukraine, as a steel powerhouse, possesses abundant slag, so applying Eco Steel Asphalt locally is expected to create synergy.

SG CEO Park Chang-ho said, "Since the visit of the Ukrainian delegation to Korea last October, we have been continuously discussing cooperation plans, and with the recent MOU for road reconstruction in Mykolaiv Province, Ukraine, we decided to establish the corporation aiming for swift and efficient business promotion," adding, "USG will be widely utilized for Ukraine's reconstruction and road network development through SG's new technologies and excellent patented products."

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