SG Eligible to Participate in Asphalt Concrete Product Bids... "Expecting Business Growth"

[Asia Economy Reporter Jang Hyowon] SG, an asphalt concrete (Ascon) and ready-mixed concrete manufacturing company, announced on the 8th that its participation in bids for asphalt concrete (hereafter Ascon) products, which were previously categorized under the “Small and Medium Enterprise (SME) Competitive Products” system, is now possible as a mid-sized company.

The Ministry of SMEs and Startups announced on the 6th through “Ministry of SMEs and Startups Public Notice No. 2021-613” that starting next year, mid-sized companies will be allowed to participate in bids in Seoul, Gyeonggi, Incheon, as well as Daejeon, Sejong, and Chungnam regions, following improvements to the system.

The SME Competitive Products system is a domestic market support policy for SMEs operated under the “Act on the Promotion of Purchase of Small and Medium Enterprise Products and Support for Development of Markets” (Market Support Act). Previously, mid-sized companies like SG were restricted from participating in bids, but with this system improvement, bid participation has become unrestricted.

An official from SG’s Ascon division stated, “With this system improvement, the risk of volume restrictions on Ascon in Seoul, Gyeonggi, Incheon, Daejeon, Sejong, and Chungnam regions has been lifted. We expect a significant increase in total Ascon sales for our entire affiliated companies based in the metropolitan area and the Chungnam region’s ‘Hwashin Ascon,’ which we acquired last August.”

They added, “Along with a substantial increase in Ascon sales, new projects such as the Eco Steel Ascon business, which promotes new technologies in construction, environment, and disaster prevention, and the eco-friendly Ascon facility EGR+ business are expected to get on track, leading to a significant rise in total sales in 2022.”

Meanwhile, SG signed a supply contract worth approximately 60 billion KRW on the 26th of last month with the Public Procurement Service for 546,800 tons of Ascon and 317,200 tons of recycled Ascon.

Going forward, SG plans to expand its Ascon business area to the metropolitan area, Daejeon, Sejong, and Chungnam regions, and to distribute “eco-friendly Ascon facilities” to all domestic Ascon plants. At the same time, SG aims to enter overseas Ascon markets such as China and the United States and grow into a global company like France’s COLAS, which is considered an advanced country in asphalt.