SK Engineering & Construction (SK E&C) will seek to develop eco-friendly asphalt technology with a local state-run company in Indonesia. SK E&C said on Feb. 20 that it signed a TSA agreement and memorandum of understanding (MOU) with Indonesia's largest state-run construction company, PTWijaya Karya (WIKA), on Feb. 20.
Under the plan, SK E&C plans to conduct a technical diagnosis of asphalt production plants operated by WIKA Bitumen and provide solutions. WIKA Bitumen, a subsidiary of WIKA, operates a 2,000-ton annual plant that utilizes eco-friendly technology on the island of Buton, Sulawesi, Indonesia, to convert natural rock asphalt into value-added asphalt.
WIKA is pushing for large-scale investment and commercialization of asphalt plants in the future through the facility's optimized performance improvement. Through the technology diagnosis, SK E&C will find and resolve the cause of the problem for six months and support the optimal operation and commercialization of the plant.
After commercialization, SK E&C will secure licenses for new technologies through joint technology development with WIKA. The company also plans to carry out FEED (basic design) and EPC (engineering, procurement, and construction) of asphalt plants with an annual capacity of 700,000 tons on the Indonesian island of Buton by 2025.
Indonesia imports about 1.45 million tons of asphalt every year, and once the project is completed, it is expected to have an import substitution effect of 700,000 tons.
When projects enter commercialization, they will be able to provide not only economic value, but also social value through job creation and environmental improvement in Indonesia.
With the project, the two companies are also looking forward to cooperation in various areas, including infrastructure, power generation, and renewable energy, as well as oil and gas fields in Indonesia.
"SK E&C plans to successfully carry out technical diagnosis and follow-up projects through a strategic partnership with WIKA," said an official at SK E&C. "Based on this, we will expand our business area to eco-friendly business areas in the future."
Meanwhile, some 20 officials, including Kim Byung-kwon, head of SK E&C Oil & Gas M&BD Group, WIKA Bitumen President Bambang, and WIKA President Tumiyana attended the signing ceremony in Jakarta, Indonesia.