SG will establish a joint venture (JV) in Indonesia with POSCO INTERNATIONAL.
According to SG on August 24, the establishment of the JV is a follow-up achievement to the ‘Global Asphalt Concrete Market Entry’ memorandum of understanding (MOU) signed with POSCO INTERNATIONAL in 2024. SG will be responsible for manufacturing technology, quality control, and production of ‘Ecosteel Asphalt Concrete,’ an eco-friendly, high-durability steel slag asphalt concrete, while POSCO INTERNATIONAL will provide global business network support and local procurement of raw materials.
SG plans to produce and supply Ecosteel Asphalt Concrete locally by utilizing steel slag generated at POSCO’s local steel plant, Indonesia’s largest integrated steel mill. The company aims to expand proven domestic technology into an overseas local production system. At the same time, it intends to link with the POSCO Group’s steel business in Indonesia, establishing a local value chain from securing stable steel slag raw material supply to product manufacturing and sales.
SG will establish its first plant on Java Island, where POSCO operates its steel mills, and aims to stabilize the local production system at an early stage. Java is Indonesia’s core economic zone, highly concentrated with industrial facilities and population, making it favorable for initial market entry and demand generation due to active road infrastructure and industrial complex development. Going forward, SG plans to set up a second plant on Sumatra Island to expand production capacity and supply regions in phases, thereby further boosting its response capabilities for major local infrastructure projects.
With the establishment of this JV, SG has built an overseas manufacturing base and is officially accelerating its entry into the global asphalt concrete market. The company aims to demonstrate its competitiveness in overseas markets, leveraging the Ecosteel Asphalt Concrete technology and execution experience accumulated through key domestic infrastructure projects such as the Seoul Metropolitan Government, Korea Expressway Corporation, and semiconductor industrial complexes.
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An SG official stated, “This JV is meaningful not only because it creates an overseas production base, but also because it establishes a business foundation that allows Ecosteel Asphalt Concrete to be applied on actual roads through linkage with local maintenance operations.” The official added, “Our global collaboration with POSCO INTERNATIONAL has been materialized into a tangible business, providing a stepping stone to expand our domestically validated technology to overseas production bases and into the global market.”
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