Stockyards Stripped Bare, Shipment Restrictions Continue
Concerns Over Delays in Public Projects... Industry Faces Emergency in Supply and Demand
The ready-mixed concrete industry in the Gwangju and Jeonnam regions is facing a severe sand supply shortage. Recently, some small and medium-sized ready-mixed concrete companies have had to forfeit deliveries for public construction projects due to a lack of sand, even after being allocated orders. As supply fails to meet demand, the stockyards at concrete plants have been stripped bare, making shipment restrictions and reduced operations inevitable.
A view of the stockyard at a ready-mixed concrete plant in Gwangju, where the ground is exposed due to a sand supply shortage. Provided by Gwangju Jeonnam Ready-Mixed Concrete Industry Cooperative.
According to the concrete industry as of the 24th, sand accounts for up to 1,000 kg per 1 cubic meter of ready-mixed concrete, making it a crucial component. However, since there are virtually no aggregate extraction sites in the province, the industry has relied on long-distance transportation from locations such as Namwon and Gochang in North Jeolla, Boseong in South Jeolla, and Geochang in South Gyeongsang. With both transportation and raw material costs rising, the price of sand from Namwon jumped from 23,000 won in 2020 to 35,000 won as of May this year. Sand from Hampyeong also soared from 15,800 won in 2020 to 27,000 won as of May this year.
Despite these price increases, securing sufficient quantities is becoming increasingly difficult. Demand continues to surge, extraction volumes at existing supply sites have declined, and new aggregate extraction permits in areas such as Hampyeong, Yeonggwang, and Gokseong are being delayed due to resident complaints and environmental regulations. In fact, even executives from ready-mixed concrete companies are making all-out efforts to secure supply, but the available quantity remains at only about half of the demand.
A concrete batching plant yard in Jangseong, Jeonnam, with the ground exposed due to sand shortage. Provided by Gwangju Jeonnam Ready-Mixed Concrete Industry Cooperative.
As a result, construction sites in the Gwangju and Jeonnam regions are expected to inevitably suffer. Major public projects such as Urban Railway Line 2, Cheomdan District 3, and the second phase of the Honam High-Speed Railway are facing concerns over construction delays. An industry official stated, "If sand is not supplied for more than seven days, production itself may be halted." Since a single ready-mixed concrete mixer truck delivers four to five loads per day, securing sand is directly linked to the industry's survival.
The ready-mixed concrete industry has responded by submitting petitions regarding aggregate extraction permits to the Ministry of Land, Infrastructure and Transport, Gwangju City, and South Jeolla Province, but no clear solution has emerged.
An industry official appealed, "This is no longer a simple supply and demand issue, but a structural problem that is spreading to the entire regional economy," adding, "Fundamental improvements and policy support are urgently needed, including securing new extraction sources, expanding the use of recycled aggregates, and commissioning studies on aggregate supply measures."
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