By Ryu Jin
Staff Reporter
Most construction work across the nation came to a halt Wednesday as a group of ready-mix concrete makers halted production for an indefinite period.
In Seongnam and Pangyo, south of Seoul, where new satellite cities are being built, 670 ready-mixed concrete makers stopped production simultaneously.
Daewoo Engineering & Construction, GS Engineering & Construction and other major builders said that they could not proceed on schedule and worked late into the night the previous day because the shutdown had already been scheduled. They plan to do other work in advance while delaying concrete-related work.
The firms worry they will suffer increased damage if the production stoppage continues for several more days without compromise.
Concerns have been growing that the conflict will hamper production across industries, as groups of local foundries stopped manufacturing cast-iron products over price disparities early this week.
Other suppliers, including ready-mixed concrete makers, have also demanded more money from their buyers to cover rising costs of raw materials. But builders, also facing economic difficulties, have not been able to match the demand.
The Korea Federation of Ready-Mixed Concrete Industry Cooperatives argued that cement and gravel prices have gone up 30 percent but ready-mixed concrete prices have remained unchanged since 2004.
However, builders allege that worsening economic conditions are squeezing everyone. As their demands were not met, the federation of concrete makers halted production.
Kwon Hong-sa, head of the Construction Association of Korea (CAK), said later in the day that he hopes construction companies and concrete suppliers agree on a desirable increase.
``I think the appropriate increase is about 3-4 percent,’’ he said. ``We would leave the dialogue channel open. But the ready-mixed concrete makers must stop their shutdown.’’