Hanil Cement to Halt Production at Busan Plant by Year-End Following Sale

Searching for a New Site

Hanil Cement announced on the 30th that it will cease production at its Busan ready-mix concrete plant, located in Deokpo-dong, Sasang-gu, Busan, as of the 31st.

In April of last year, Hanil Cement's board of directors approved the sale of the Busan ready-mix concrete plant site to Ondongne Development, a comprehensive real estate company. The sale price was 75 billion won, and at the time, Hanil Cement cited "improving asset management efficiency" as the reason for the sale. This production halt is a follow-up measure resulting from the sale of the plant site.

With the Busan plant stopping production, a temporary decrease in the supply of ready-mix concrete in the Busan area is expected to be inevitable. As of last year, Hanil Cement's Busan plant recorded sales of 29.3 billion won, accounting for 1.69% of total sales (on a consolidated basis for 2024). Hanil Cement stated that it is considering producing ready-mix concrete at nearby plants as a substitute until a new site is secured.

A Hanil Cement official said, "We have not yet found a new site," adding, "We plan to use the proceeds from the sale to search for a new site for the Busan plant and alternative production facilities."