Large Fire at Gidulami: "No Disruption in Boiler Supply Expected"

On New Year's Day, Two of Five Buildings at Asan Plant in Chungnam Completely Destroyed by Fire

At around 7:48 a.m. on the 1st, a large fire broke out at the Kiturami Boiler factory in Tangjeong-myeon, Asan-si, Chungnam, and firefighters are conducting extinguishing operations.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] Kiturami Boiler announced on the 3rd that despite the large fire that occurred at the beginning of the new year, "there will be no disruption in boiler supply." On the 1st, Kiturami Boiler suffered massive damage, with 2 out of 5 buildings completely destroyed in a fire at its boiler manufacturing plant in Asan, Chungnam.

Kiturami produces boilers, industrial air conditioners, and air handling units at its plants in Cheongdo, Gyeongbuk, and Asan, Chungnam, with the Asan plant accounting for about 50% of Kiturami's total production.

However, a Kiturami official explained, "We can meet this winter's demand with boiler inventory supplied to 9 logistics centers and dealerships nationwide," adding, "Since boiler production is dualized with the Cheongdo plant, there is no major problem in boiler production."

The Asan plant, which was damaged by the fire, was expanded after Kiturami acquired Century Asan Plant, an air conditioner manufacturer, in 2003. Four affiliates within the group?Kiturami Co., Century, Beomyang Cooling, and Shinseong Engineering?are operating production lines there. While only boilers are produced at the Cheongdo plant, the Asan plant manufactures boilers as well as industrial air conditioners and air handling units, so supply disruptions for products other than boilers seem inevitable.

A Kiturami official stated, "The remaining three buildings that were not damaged by the fire will resume normal operations once the cause of the accident investigation is completed," and added, "We will strive to minimize damage so that employees of partner companies do not lose their workplaces."

Industry insiders expect that while Kiturami will not face supply shortages this winter, if the factory restoration period is prolonged, supply disruptions of air conditioners and air handling units during the summer peak season will be unavoidable.

Meanwhile, Kiturami has subscribed to comprehensive property insurance worth 209.9 billion KRW with multiple insurers including KB Insurance, so it is expected to receive compensation for the damages.

This content was produced with the assistance of AI translation services.