Asbestos Removal in Schools Nationwide by 2027... KCC Expected to Benefit

Asbestos Removal Scheduled at 4,600 Schools Nationwide
KCC to Produce Largest Scale of Ceiling Material 'Seugotex'

The Ministry of Education will replace the ceiling materials containing asbestos in schools nationwide by 2027. As a result, KCC, the largest supplier of ceiling materials in Korea, is expected to benefit.

According to industry sources on the 19th, as of 2023, about 4,600 out of 20,500 kindergartens and elementary, middle, and high schools nationwide still have asbestos-containing building materials. Asbestos is a Group 1 carcinogen, and continuous inhalation through the respiratory system poses a risk of causing lung cancer and other diseases. The Ministry of Education plans to complete asbestos removal work by 2027, with a budget of 1.1223 trillion KRW allocated for the project.

Workers are removing ceiling materials containing asbestos. Photo by Asia Economy DB

In the building materials industry, KCC is expected to be the biggest beneficiary. When the existing asbestos-containing ceiling materials are removed, gypsumtex ceiling materials will be used. Generally, ceiling materials include gypsum board and gypsumtex; gypsum board is used in apartment ceilings and requires wallpaper finishing, while gypsumtex is used in office facilities and schools and does not require additional finishing.

KCC is the only domestic company producing gypsumtex and also has the largest production facilities. KCC holds the largest market share in Korea, followed by the German company Knauf. Considering the supply volume, the industry expects KCC to supply a significant portion of the asbestos removal construction materials.

According to the Ministry of Education's "Five-Year Investment Plan for School Facility Environment Improvement," the total construction area for asbestos removal is 10,093,000㎡. If gypsumtex of 1.8㎡ size is used for about 70% of this area, approximately 3.9 million sheets will be required. According to price information, the price per sheet of gypsumtex commonly used in school facilities is 6,500 KRW, which amounts to about 25 billion KRW in material costs. KCC is expected to account for a significant portion of this 25 billion KRW in sales.

Meanwhile, KCC launched a new ceiling material product, the "Large-Size Gypsumtex PLUS," in the second half of this year. Compared to existing products, the size has been increased by 1.5 times, reducing material requirements and lowering construction costs. Additionally, internal verification shows that installation speed is 1.8 times faster. The product is also fire-resistant, does not easily burn, and features a seismic-resistant ceiling system. It has passed seismic resistance tests for earthquakes of magnitude 8.4 or higher conducted by the Earthquake Disaster Prevention Research Center, proving its safety.

KCC has launched the large-sized Gypsumtex PLUS (left), which is 1.5 times larger than the standard size. Provided by KCC