[Featured Stock] SG Rises as No.1 Asphalt Producer... Specco Hits Upper Limit Amid Nationwide Pothole Emergency

[Asia Economy Reporter Hyungsoo Park] Shares of asphalt concrete companies Speco and SG are on the rise. This is attributed to the surge in potholes, known as "road mines," on roads nationwide as the monsoon and heavy rains continue for the 50th consecutive day. A pothole is a damaged section of the road with a hole shaped like a pot.

As of 10:58 AM on the 13th, SG is trading at 2,565 won, up 8.46% from the previous day. Speco's stock price has surged to the upper limit.

According to Seoul City's "Pothole Occurrence Status" data on the 12th, 7,071 potholes occurred in Seoul over the ten days from the 1st to the 10th, during the heavy rains. This is about 1.5 times the average number of potholes occurring in August over the past 10 years (4,829). It is more than twice the number of potholes (3,149) that occurred last month.

Experts believe that potholes are forming in places where heavy vehicles such as buses and trucks frequently travel on weakened asphalt due to record-breaking heavy rain.

It appears that potholes have surged not only in Seoul but nationwide. In Busan, more than 2,100 potholes have recently been identified.

There are calls for the government or city authorities to invest budgets to repave aging roads to prevent accidents caused by potholes, which recur every summer.

SG, the leading company in the asphalt concrete (Ascon) industry, plans to commercialize EcoSteelAscon in the metropolitan area in the second half of this year. According to SG, the company recently proposed quality assurance for the supply of the new product EcoSteelAscon to relevant departments in Seoul Metropolitan City and Incheon Metropolitan City.

EcoSteelAscon is an eco-friendly technology that improves the performance of asphalt concrete by using strong steelmaking slag instead of natural aggregates. It features ▲high strength ▲low noise ▲durability ▲cost-effectiveness.

It has about 1.5 times higher strength compared to regular Ascon, making it optimal for main roads, large thoroughfares, and areas with heavy vehicle traffic. It is suitable for densely populated areas and apartment residential zones due to its excellent noise reduction effect during vehicle operation. Advanced countries overseas already use the slag employed in EcoSteelAscon as a road paving material.