SG Accelerates Establishment of Indonesian JV with POSCO INTERNATIONAL... Invests in Local Subsidiary
SG, a company specializing in asphalt concrete (ascon), is accelerating the expansion of its business in Indonesia by investing in a joint venture (JV) currently being promoted with POSCO INTERNATIONAL. The company plans to establish a production base in the country to manufacture and supply its eco-friendly, highly durable steel slag asphalt concrete, branded as 'Eco Steel Ascon,' and target the Indonesian road infrastructure market.
On October 1, SG announced it has proceeded with an investment for the establishment of its Indonesian JV. With this investment, the company intends to lay the foundation for local production and accelerate the full-scale rollout of the Eco Steel Ascon business.
SG and POSCO INTERNATIONAL are currently carrying out the contractual process for establishing the Indonesian JV. Both parties plan to build local production bases for ascon and Eco Steel Ascon and, based on these, to proceed with local manufacturing and supply of the products.
The characteristics of locally sourced raw materials will also be leveraged as a business advantage. Indonesia is a region where the procurement cost for natural aggregates required for ascon production is high. SG plans to use steel slag, which is generated locally, as an alternative aggregate to reduce both the use of natural aggregates and the burden of procuring raw materials.
Through these measures, the company aims to secure both price competitiveness and quality competitiveness for Eco Steel Ascon and expand its application within the local road infrastructure market.
Efforts are also underway to establish a partnership system to support local business operations. SG is working to form a road project consortium with local Indonesian companies. Through the consortium, the company plans not only to engage in local production and supply of Eco Steel Ascon, but also to link this with road construction and maintenance, thereby building a business model that covers everything from production to real-world application.
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An SG spokesperson said, "With this investment as a starting point, we plan to gradually establish the necessary foundation for our Indonesian operations," adding, "We will actively strengthen cooperation with local partner companies to secure opportunities to participate in road infrastructure projects."
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