[Click eStock] "SG, Growth Expected Centered on Ecos Steel Ascon"

GL Research announced on the 20th that it expects SG to grow centered on eco-friendly Eco Steel Ascon (asphalt concrete). No investment opinion or target price was provided.

Park Chang-yoon, a researcher at GL Research, stated, “Eco Steel Ascon, developed through nine years of research with POSCO and Hyundai Steel, is SG's core competitiveness,” adding, “By utilizing steelmaking slag, it has superior strength compared to conventional Ascon and has been applied in areas with high pedestrian traffic and heavy vehicle flow such as bus terminals, securing references.”

SG is the only listed Ascon company in Korea. Following the Public Procurement Service's recent partial market opening to mid-sized companies, SG is actively expanding contracts. This year, it plans to sign a technical agreement with local Ascon companies for the supply of Eco Steel Ascon and establish a royalty-based business model.

SG aims to solve the seasonal sales decline issue with the emission reduction device dedicated to Ascon plants, ‘SGR+’. SGR+ is easier to maintain and offers better operational cost savings compared to existing filter methods.

Researcher Park said, “To expand into overseas markets, we established a Ukrainian subsidiary and can immediately start post-war reconstruction projects,” adding, “We are collaborating with the Ukrainian provincial government and companies to build a local supply chain and are conducting demonstration tests producing Eco Steel Ascon using steelmaking slag from local steelmakers.”

He continued, “In December, we signed a tripartite memorandum of understanding (MOU) with the large local Indian construction company Ashoka Buildcon and POSCO International,” and said, “Through this tripartite agreement, we plan to establish a joint venture and carry out major road construction projects across India.”