SG, POSCO International team up to tap Indonesian road market

[Courtesy of SG]

South Korean asphalt concrete manufacturer SG announced a strategic partnership with POSCO International to enter the Indonesian road paving market. On Sunday, SG revealed its plan to produce eco-friendly asphalt concrete, known as Eco Steel Asphalt, by sourcing steel slag from POSCO’s steel mill operations in Indonesia. The company also plans to collaborate with Indonesian asphalt producer Selo Sakti and the Indonesian Ministry of Public Works and Housing.

The Indonesian government, which typically allocates its road paving budget in October of each year, is currently considering the adoption of stone mastic asphalt (SMA) for its highways.

“We held a series of meetings over five days in Indonesia from August 26th, 2024 where we discussed asphalt concrete supply records, deal structure, and the constraints for foreign direct investment (FDI) companies to win orders,” an SG official said.

SG’s Eco Steel Asphalt is recognized for its environmental benefits, such as resource recycling and minimizing the extraction of natural aggregates. It also boasts lower production costs compared to conventional asphalt, along with advantages including a long lifespan, high strength, and reduced fine dust emissions. SG filed a patent for Eco Steel Asphalt in Indonesia in May 2024.

The company is eyeing new markets and plans to expand into countries with active infrastructure investments, starting with the reconstruction efforts in Ukraine.