SG Completes First Investment in Ukraine Local Subsidiary... "First Step Toward Local Road Repair and Reconstruction Project"

SG announced on the 15th that it has completed the first round of investment in its local subsidiary in Ukraine. The invested funds will be primarily used for registration processing and initial expenses, and subsequently, additional investments will be made to fully commence the production of Eco Steel Ascon.

Last year, SG decided to establish a local subsidiary, SG Ukraine, to promote road restoration projects and post-war reconstruction efforts in Ukraine. The company completed the establishment of the subsidiary in February this year and plans to conduct due diligence for the acquisition of a local Ascon plant.

An SG representative stated, “This investment in the Ukrainian subsidiary marks a significant first step toward launching full-scale reconstruction projects such as local road restoration. With the investment funds totaling 7 million USD (approximately 9.6 billion KRW), we will acquire the local Ascon plant and supply Eco Steel Ascon as soon as possible.”

Meanwhile, prior to acquiring the local Ascon plant, the company is securing raw materials to ensure a smooth supply of Eco Steel Ascon. The company explained that a proactive agreement has been finalized to receive steel slag for Ascon manufacturing free of charge for 10 years from Ukraine’s largest steel company, and both parties are currently reviewing the detailed terms.

Once the supply of raw materials for Eco Steel Ascon production stabilizes, SG plans to proceed with deliveries sequentially according to previously signed sales and supply contracts. In December last year and January this year, SG signed Ascon supply contracts worth 17.8 billion KRW each with Ukraine’s DS Prom Group LLC and LLC Eurobud Plus, respectively.