[Click eStock] “SG, Transforming from a Domestic Company to an Export Company”

Yuanta Securities diagnosed on the 9th that SG is transforming from a domestic company to an export company.

SG is a company specializing in the manufacturing and sales of asphalt concrete (Ascon), producing products mainly used in public construction projects such as road paving and parking lots. Ascon is known as an industry highly dependent on the domestic market due to its property of hardening below a certain temperature. However, SG has declared a shift from its existing image as a domestic company to an export company, embarking on a new challenge.

SG's transformation is expected to accelerate from 2025. It signed a tripartite business agreement with a local Indian company and POSCO International to participate in road construction projects in India (December 2024), and obtained a patent for Eco Steel Ascon in Ukraine (December 2024). Funding for overseas expansion has also been secured through a rights offering.

Kwon Myung-jun, a researcher at Yuanta Securities, emphasized, “This year is expected to be a period when sales growth through overseas expansion, such as in India, will be confirmed,” adding, “SG now needs a change in perception as an export company.”

SG is also leading the development of eco-friendly products to overcome the environmental limitations of traditional Ascon. As concerns about environmental damage arose from the extraction of aggregates used in Ascon manufacturing, SG collaborated with domestic steel companies and, after nine years of research, succeeded in developing Eco Steel Ascon using steelmaking slag, a byproduct generated during the steel production process.

Researcher Kwon stated, “Eco Steel Ascon has higher strength compared to existing products and has noise and fine dust reduction effects,” and predicted, “Especially, electric vehicles are heavier than internal combustion engine vehicles, which shortens the replacement cycle of road paving materials, leading to increased demand for Eco Steel Ascon with superior strength.”

Additionally, SG is actively addressing the issue of harmful substances generated during the Ascon manufacturing process as a new business. He explained, “With the revision of the Enforcement Rules of the Air Environment Conservation Act in 2020, Ascon manufacturers are required to install eco-friendly facilities,” and added, “In response, SG developed ‘SGR+,’ a dedicated facility for reducing specific air pollutants in Ascon plants, and continues to receive orders.”