Posco International to venture into Ukraine’s road reconstruction project

[Courtesy of SG]

South Korea’s Posco International Corp. is preparing to join Ukraine’s road reconstruction project, a key part of the country’s post-war rebuilding efforts.

According to industry sources on Wednesday, Posco International signed an agreement with SG, a mid-size Korean enterprise, on Monday at Posco Tower in Songdo, Incheon, to establish a global cooperation system for the asphalt concrete (ascon) business and jointly promote projects.

Under the agreement, Posco International will collaborate with SG in pursuing ascon business opportunities.

Posco International will handle overseas project exploration, while SG will secure local technology rights, manufacturing, and construction.

SG has recently secured a 4 trillion won contract for the free supply of steel slag in Ukraine.

“This agreement will create a synergy effect by combining Posco International’s global network and overseas business development experience with SG’s technical expertise and manufacturing capabilities,” said a Posco International official.

Posco International has been focusing its efforts on Ukraine’s reconstruction. Since forming a Ukraine Reconstruction Task Force (TF) in March last year, the company has been pushing to participate in reconstruction projects across five key areas: steel, food, secondary battery materials, energy, and infrastructure.

Posco International chose SG as its overseas business partner due to the company’s strong technical capabilities and growth potential.

SG is already involved in Ukraine’s road reconstruction project with its self-developed Eco Steel Ascon.

The company is recognized for its pioneering role in the Ukraine reconstruction effort, having established a local subsidiary, a rare achievement among mid-sized Korean companies.

For SG, the collaboration with Posco International significantly boosts its overseas business endeavors.

SG is currently accelerating its reconstruction projects in partnership with the Ukrainian provincial government and local companies. The company has signed contracts to source steel slag, the raw material for Eco Steel Ascon, from two Ukrainian steel companies and has acquired a local ascon plant to commence full-scale production.

The partnership between Posco International and SG is also expected to expedite government funding support for Ukraine’s reconstruction projects.

Posco International and SG plan to jointly pursue ascon projects in Indonesia and India, where demand for road paving is rapidly increasing. Indonesia’s new capital relocation project and India’s national-scale social overhead capital projects are driving this surge in demand.