[Click e-Stock] "SG: Eco-Friendly K-Ascon to See Rising Global Infrastructure Demand, Including Ukraine Reconstruction"

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On December 12, independent research firm ARIS announced that SG plans to actively respond to global infrastructure reconstruction demand, in addition to expanding its domestic market share, by leveraging its competitiveness in eco-friendly and high-strength products.

Lee Jaemo, CEO of ARIS, added, "SG is expected to benefit significantly from overseas SOC (social overhead capital) projects, particularly including the Ukraine reconstruction project."

SG is a company engaged in the manufacture and sale of asphalt concrete as well as construction businesses such as road paving and equipment rental. As of the third quarter of this year, asphalt concrete accounted for 71.5% of its sales, while products and construction contracts made up 28.5%.

According to ARIS, the company has developed Eco Steel Ascon, an eco-friendly, high-strength asphalt concrete utilizing steel slag, for the first time in the industry, and possesses differentiated competitiveness in terms of quality, durability, and environmental performance. ARIS analyzed that this product meets the rising demand for high-strength asphalt concrete, especially in the Seoul metropolitan area, and is increasingly being adopted for roads and logistics hubs with heavy traffic.

In addition, SG operates nine asphalt concrete plants nationwide, including in Incheon, Seoul, and Gyeonggi Province, securing stable supply capabilities and a construction network, which is a key strength.

Recently, as international cooperation involving the United States and the EU has become more tangible, the Ukraine reconstruction project is expected to accelerate, focusing on the restoration of roads, railways, airports, and other SOC. According to the report, SG is cited as a direct beneficiary of the expanding overseas demand for asphalt concrete and construction equipment, based on its technological competitiveness in Eco Steel Ascon and its experience in infrastructure construction. In particular, the company has established a proactive business foundation by conducting pilot road paving and demonstration tests locally in Ukraine.

According to the ARIS report, excluding one-off factors this year, SG is in the process of normalizing its performance centered on its core business, with next year’s sales projected at 170 billion won and operating profit at 13.6 billion won. The main growth drivers have been identified as the increase in Eco Steel Ascon orders related to Ukraine reconstruction and the expansion of bids from the Public Procurement Service.

With changes in domestic regulatory environments strengthening its medium- to long-term competitiveness, SG is facing a market environment where the possibility of overseas orders is rising due to the expansion of road, smart city, and logistics infrastructure in emerging countries such as India and Indonesia. In particular, in regions with many government-led SOC projects, companies possessing high-strength, eco-friendly asphalt concrete technology are being evaluated as having stronger bidding competitiveness.

An SG representative stated, "We are being recognized for our technological competitiveness in both domestic and overseas markets, centered on eco-friendly, high-strength asphalt concrete. We are also strengthening our preparations to participate in the upcoming global infrastructure investments and Ukraine reconstruction. Based on sustainable products and stable supply capabilities, we will continue to achieve medium- to long-term growth."

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