The Ready-Mixed Concrete Transportation Labor Union announced that it will completely halt the supply of ready-mixed concrete to construction companies that install 'batch plants' directly on construction sites. In particular, not only HDC Hyundai Development Company, which faces a halt in construction at national sites due to its refusal to transport ready-mixed concrete, but also large construction companies are on high alert due to concerns over delays in the construction schedule.
According to the construction industry on the 16th, the Greater Seoul Area Northern and Southern Headquarters of the National Ready-Mixed Concrete Transportation Labor Union, affiliated with the Federation of Korean Trade Unions, went on strike on the 1st. In particular, the refusal to transport ready-mixed concrete has been implemented at all construction sites of HDC Hyundai Development Company since the 7th.
HDC Hyundai Development Company's plan to install a batch plant at the 'Gwangwoon University station area complex development project' has sparked backlash from the Ready-Mixed Concrete Transportation Labor Union. HDC Hyundai Development Company stated it would install a batch plant, citing concerns about traffic congestion and safety issues due to the presence of a residential complex with 3,930 housing units around the Gwangwoon University complex development site.
A batch plant is a facility that directly mixes cement, water, gravel, sand, and other materials at construction sites. Installing a batch plant at the construction site means that ready-mixed concrete can be produced without transporting it from a ready-mixed concrete factory via mixer trucks.
According to the Ministry of Land, Infrastructure and Transport's quality management guidelines for construction projects, the installation of batch plants is only permitted in areas with traffic congestion or where it is impossible for ready-mixed concrete to arrive within 90 minutes. The amount that can be produced and supplied by the batch plant is also limited to 50% of the demand.
The Ready-Mixed Concrete Transportation Labor Union holds the stance that installing batch plants at dwelling business sites threatens the survival of the ready-mixed concrete transportation industry. There are also concerns that, starting from this Gwangwoon University complex development site, the installation of batch plants may increase at other business sites in the Greater Seoul Area.
A representative of the Ready-Mixed Concrete Transportation Labor Union emphasized, "In areas like the 3rd New Town where transportation is practically difficult, we can accept the installation of batch plants, but construction companies directly installing batch plants at business sites where ready-mixed concrete can be produced and transported from nearby factories is nothing short of taking away the livelihood of the ready-mixed concrete transportation industry." He added, "If the installation of batch plants is pushed forward, we plan to completely refuse ready-mixed concrete transportation not only at HDC Hyundai Development Company's business sites but also at all construction sites nationwide."
The construction industry argues that installing batch plants can reduce the transportation time of ready-mixed concrete and guarantee the quality of the product by directly mixing materials.
A representative from a large construction company explained, "Since ready-mixed concrete begins to set after 90 minutes post-production, it must arrive at the construction site within one hour," adding, "This is because we need to consider that the waiting and pouring time in accordance with the site process takes about 30 minutes."
According to the construction industry, this is the second case of installing a batch plant at a private apartment construction site in the Seoul area. In September last year, Hyundai E&C installed a batch plant at the 'Banpo Jugong Complex 1, 2, and 4' reconstruction site in Banpo-dong, Seocho-gu, marking the first instance of a batch plant installation in private housing construction.
However, batch plants are more expensive than sourcing ready-mixed concrete from a factory. Large construction sites requiring the installation of batch plants are not common, and since it costs at least 10 billion won to set one up, the consensus in the construction industry is that this is not an issue of cost reduction.
A representative from the construction industry stated, "The reason there haven't been many instances of construction companies installing batch plants at private housing sites is that it costs a lot of money," adding, "The Banpo Jugong Complex 1, 2, and 4 project was in a large-scale site with over 5,000 housing units, making it difficult to procure ready-mixed concrete from nearby factories within an hour due to its geographical characteristics in the center of Seoul."
Other construction companies are anxious about the possibility of the Ready-Mixed Concrete Transportation Labor Union's strike becoming prolonged.
Another representative from a large construction company noted, "In business sites with severe traffic congestion, such as in downtown Seoul, if ready-mixed concrete transportation is delayed, it must be disposed of, and we cannot ignore the safety concerns of nearby residents regarding hundreds of mixer trucks passing by. Therefore, we must consider the installation of batch plants." He added, "While we understand the concerns of the Ready-Mixed Concrete Transportation Labor Union about decreased workloads, we should avoid causing delays in the construction schedule nationwide through sufficient consultation."