Ready-mix Concrete Industry "Most Factories Will Shut Down Starting Tomorrow"
The main gate of a cement factory in Danyang, Chungbuk, on the 25th. Members of the Cargo Solidarity Union have set up a tent, and police are stationed nearby to prevent union members from obstructing shipments. [Photo by Korea Cement Association]
[Asia Economy Reporter Kim Jong-hwa] As of the third day of the general strike by the Cargo Solidarity of the Public Transport Workers' Union under the Korean Confederation of Trade Unions (hereinafter Cargo Solidarity) on the 26th, the cement industry recorded a cumulative loss of 46.4 billion KRW.
According to the Korea Cement Association on the 27th, cement demand on weekends decreases to about 103,000 tons, roughly half of the weekday demand of 200,000 tons. The association explained that due to the collective transport refusal by Cargo Solidarity, the shipment volume on the previous day was only 9% of the scheduled shipment, about 9,000 tons, resulting in a failure to ship approximately 94,000 tons, effectively causing a logistics paralysis. The damage amount is about 9.4 billion KRW (94,000 tons × 100,000 KRW/ton), and the cumulative damage after three days of transport refusal reached 46.4 billion KRW.
Although cement shipments were carried out with the help of public authority (police) at some distribution (shipment) bases in the southern regions such as Busan, shipments from cement production plants (Donghae, Samcheok, Gangneung, Yeongwol, Danyang, Jecheon) and distribution (shipment) bases in the metropolitan area remain almost completely halted.
The cement industry is transporting cement to each distribution (shipment) base as much as possible through rail and ship transport to stockpile inventory. Cement transfer at Obong Station, which had been suspended due to a safety accident involving a Korail employee, has resumed, and cement production at production plants is proceeding normally regardless of Cargo Solidarity's transport refusal. Today, Sunday, cement shipment volume is '0' (zero), independent of the transport refusal. Ready-mixed concrete plants and construction sites are also not operating.
A representative from the ready-mixed concrete industry stated, "Since last Friday, small and medium-sized plants have stopped operations, and from Monday, most ready-mixed concrete plants are expected to shut down due to lack of cement."
A Korea Cement Association official said, "Since 2020, while implementing the Safe Freight Rate system for three years, the cement industry has had to bear an additional logistics cost of 120 billion KRW, and has endured sacrifices including sales losses amounting to 106.1 billion KRW during the eight-day transport refusal in June. The transport refusal, which holds the cement industry hostage, must be stopped immediately." He added, "The cement industry will make every effort to ship cement to resume operations at ready-mixed concrete plants that have completely stopped and to ensure smooth operations at construction sites pressured by delays."
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