[Report] This Time a 'Carbonation Crisis'... Welding May Come to a Complete Halt Due to Lack of Carbon Dioxide

Supply Halved Since a Month Ago... "Oyster Industry Needs to Distribute Maintenance Periods"

Inside the factory of the press manufacturer Simpack ENG. The factory, usually filled with welding sparks and smoke, looks deserted. Due to a shortage of carbon dioxide, only about half of the factory's workstations are operating. /Incheon=Photo by Kim Hyun-min kimhyun81@

[Incheon=Asia Economy Reporter Kim Jong-hwa] On the afternoon of the 18th, I visited the Simpack ENG factory located in the Geomdan Industrial Complex, Seo-gu, Incheon. Although welding sparks were flying here and there in the factory as large as a soccer field, it looked rather empty compared to the large scale of the factory. Some welders were concentrating on their work, sparking flames, but there were many empty spots inside the factory. Lee Jong-seo, head of production management at Simpack ENG, said, "Usually, the factory interior is filled with smoke from welding, but due to a shortage of carbonic acid, operations have been reduced, leaving many workstations empty."

Simpack ENG is a large-scale press manufacturer that uses 30,000 tons of thick steel plates (used for ships and construction) annually as raw materials. Carbonic acid is used when cutting thick steel plates or performing shielded welding, but since the carbonic acid supply was halved about a month ago, the workload had to be reduced accordingly. They use 1.5 tons of carbonic acid per day including overtime, and previously, the supplier visited twice a week to fill the 5-ton capacity tank lorry. However, since a month ago, the number of tank lorry fillings was reduced to once a week, and from a week ago, they have barely been supplied with 800 kg (20 cylinders of 40 kg capacity each). Lee said, "We are prioritizing urgent tasks, and just yesterday, we used up 18 cylinders," adding, "We are anxious that even this supply might stop. Starting tomorrow, we plan to reduce the workload by another 5%."

A technician is welding at the factory of Simpack ENG, a press manufacturer. Normally, carbon dioxide is supplied directly through a pipe connected to a 5-ton capacity tanker, but as the carbon dioxide ran low, a 40kg capacity carbon dioxide cylinder was urgently obtained to continue the work. /Incheon=Photo by Kim Hyunmin kimhyun81@

S Company, a first-tier vendor located in Ansan, Gyeonggi Province, which manufactures forklifts and excavators, uses 6 to 7 tons of carbonic acid per week but recently has been supplied with only about 2 to 3 tons. A company official said, "We have not been able to operate properly for about a month," expressing concern, "If this situation continues longer, it will be a big problem. If we cannot supply parts, even the parent company may have to halt operations."

Factories Stop Without Carbonic Acid... ‘Anxious’

Small and medium-sized enterprises (SMEs) that have reduced operations by about half due to the lack of carbonic acid are anxiously waiting. If even the small amount of carbonic acid gas currently supplied is cut off, they will have no choice but to completely stop factory operations.

An employee at Samjeong Gas Industry, a carbon dioxide charging and wholesale company, is lining up empty bottles to be refilled with carbon dioxide. The bottles lined up that day ultimately could not be refilled and had to wait another day. /Incheon=Photo by Kim Hyunmin kimhyun81@

Samjeong Gas Industry, a charging and wholesale company supplying carbonic acid to these companies, is currently in a very difficult position. The carbonic acid supply from petrochemical manufacturers, who produce carbonic acid, has been reduced by about half, while SMEs are clamoring for more. On this day, the remaining stock was only 2 tons in a 24-ton capacity carbonic acid gas tank. This amount is kept because it cannot be further emptied for tank operation. Empty cylinders that cannot be refilled with carbonic acid keep piling up in the company’s backyard, and trucks that should be transporting carbonic acid from petrochemical manufacturers have nowhere to go and are waiting endlessly at the charging station.

They send out teams anywhere in the country where carbonic acid can be produced, gathering carbonic acid with great effort, but it is still insufficient. When they send a 20-ton capacity tank lorry to distilleries in Yeosu and Gwangyang, which they usually do not source from, they only manage to load about 4 to 5 tons. Even so, this is like rain in a drought for SMEs, so they gratefully purchase it.

Samjeong Gas Industry supplies carbonic acid gas to about 400 SMEs in the metropolitan area. New supply volumes keep decreasing, and stocks are running low, so they are requesting SMEs to reduce operations, but they know this is only a temporary measure. Shim Jae-woo, head of management planning at Samjeong Gas Industry, said, "New supply volumes are less than half of what they were a month ago, so we are asking customers to reduce operations," adding, "Some companies have already stopped operations. Stocks are almost gone, and only empty cylinders are increasing. The next one to two weeks until early next month will be the biggest challenge."

Trucks that need to deliver carbonated water from the manufacturer have nowhere to go and are waiting endlessly at the charging station. /Incheon=Photo by Hyunmin Kim kimhyun81@

May Carbonic Acid Production Drops 70% from Normal

Carbonic acid is a byproduct (raw carbonic acid) from the petroleum refining process. It is supplied to major consumers and wholesalers through carbonic acid maker companies that refine, liquefy, and distribute it. The carbonic acid shortage crisis was triggered as major petrochemical companies producing raw carbonic acid began regular maintenance from March, reducing carbonic acid production.

The Korea High-Pressure Gas Industry Cooperative Federation views the carbonic acid shortage, which has recurred every 2 to 3 years in line with the regular maintenance cycles of petrochemical facilities, as particularly severe this year. Since the 2020 carbonic acid crisis, there was no room to stockpile reserves, and the COVID-19 pandemic increased demand for frozen and fresh food packaging, which in turn increased dry ice consumption, leading to a rapid rise in carbonic acid consumption.

According to the industry, the domestic daily carbonic acid production capacity is 2,740 tons, about 83,000 tons monthly. Production was about 80% of normal in March and April, but it is expected to drop by 70% this month due to overlapping maintenance periods of petrochemical companies. There are concerns that the carbonic acid crisis could become more severe than expected due to the continuous decrease in carbonic acid stock and increased demand for dry ice.

Lee Young-sik, executive director of the Korea High-Pressure Gas Industry Cooperative Association, said, "The carbonic acid shortage is adversely affecting the entire industry. The only solution is to stagger the maintenance schedules of the petrochemical industry," appealing, "If the government does not actively mediate, there is no way to resolve the carbonic acid crisis."