Goodbye to Pungnap Factory... Concerns Over Construction Chaos as Seoul's Ready-Mix Concrete Supply Drastically Disappears

Sampyo Pungnap Plant to Cease Operations by Year-End
Only Two Remicon Plants Left in Seoul
Concerns Grow Over Supply Disruptions for Major Construction Projects This Year

Ready-mixed concrete (Remicon) plants, key material suppliers for construction sites, are disappearing from urban areas. Due to circumstances such as sales or lease expirations, factories that have been closed are relocating to provincial areas one after another, unable to find alternative sites due to opposition from local residents. With large-scale construction projects scheduled in several parts of Seoul this year, concerns are rising over significant disruptions in Remicon supply.

According to industry sources on the 28th, the Remicon plant operated by Sampyo Industry in Pungnap-dong, Songpa-gu, Seoul, will cease operations by the end of this year. Since 2006, Songpa-gu has been requesting Sampyo Industry to relocate the plant for the restoration project of the Pungnap Fortress cultural heritage site. In response, Sampyo Industry filed a lawsuit against the Ministry of Land, Infrastructure and Transport in 2019, seeking to cancel Songpa-gu's compulsory acquisition procedure, but lost the case in February of the same year. Over the past five years, they have searched for alternative sites in Seoul but ultimately failed to find any. Recently, the Sampyo Industry plant in Seongsu-dong, Seongdong-gu, Seoul, also ceased operations after 45 years for the same reason.

A representative from Sampyo Industry stated, "We will resume operations once an appropriate alternative site is found, but due to local community opposition, it is currently difficult. We are broadly searching for sites in areas relatively close to Seoul, such as Bucheon, Bupyeong, Anyang, Hanam, and Guri."

Currently, there are three Remicon plants in Seoul: Cheonma Concrete in Segok-dong, Gangnam-gu; Shinil CM in Jangji-dong, Songpa-gu; and Sampyo Industry in Pungnap-dong, Songpa-gu. When the Sampyo Pungnap plant is demolished at the end of this year, only two Remicon plants will remain in Seoul. Since 2017, when the Hanil Cement plant in Yeongdeungpo-gu was demolished, Remicon plants in Seoul have been closing and relocating one after another since the 2000s.

The main reason is opposition from local residents. Due to noise, dust, odors, and wastewater generated by Remicon plants, nearby residents oppose the establishment of such factories, and local governments are reluctant to grant permits. Recently, plans to establish Remicon plants in Yangyang and Goseong in Gangwon-do, as well as Ulsan, were halted due to opposition from local residents. An industry insider said, "Since local government heads are elected officials, they tend to avoid actions that might provoke complaints from residents. Also, if such issues are part of their campaign promises, they must fulfill them once elected, which sometimes leads to project cancellations."

A ready-mix concrete truck is entering a construction site in Seoul. Photo by Heo Young-han

With only two Remicon plants left in Seoul, there is a possibility of supply disruptions in some areas facing major construction projects. Since the Sampyo Seongsu plant, which accounted for about 40% of Remicon supply in Seoul, has withdrawn and the Pungnap plant is preparing to close, a significant gap in total supply is inevitable. This year, major redevelopment and reconstruction projects are planned in areas such as Banpo 4 District, Hannam 3 and 4 Districts, and the Jangwi-dong area in Seongbuk-gu.

Concerns are also raised about quality issues. Remicon must be transported and poured within 90 minutes, but if supplies are transported from plants in Anyang, Guri, Hanam in Gyeonggi-do, or Bucheon and Bupyeong in Incheon, it may be impossible to meet the "golden time." If Remicon is not poured within the appropriate time, strength development may not occur, leading to safety issues.

Sangheon Park, a senior researcher at the Korea Construction Industry Research Institute, said, "In Seoul, traffic congestion is severe, and due to emergency reduction measures under the Fine Dust Control Act, vehicles cannot operate daily, raising doubts about timely delivery. The two remaining plants in Seoul combined do not reach the production capacity of the former Seongsu plant, so areas facing large-scale housing construction, such as Hannam-dong, may be affected by supply shortages."