Cement Industry Invests 2.03 Trillion Won in Facilities Over 5 Years... "Environmental Cost Burden is High"

Cement Association Announces Results
Response to Strengthened Environmental Regulations

A cement factory located on the outskirts of Seoul. Photo by Dongju Yoon doso7@

The domestic cement industry has invested a total of 2.0315 trillion KRW in facility investments over the five years from 2019 to this year. Most of the investments were aimed at carbon-neutral facilities for greenhouse gas reduction and the expansion of alternative fuel use.

The Korea Cement Association announced on the 8th that, based on a survey of major cement manufacturers' facility investment performance (provisional), approximately 2.0315 trillion KRW was invested over the past five years.

By category, ▲ responding to environmental regulations (pollution, environment & safety) and ▲ improving cost reduction (automation, energy saving) accounted for about 1.7745 trillion KRW, representing approximately 88% of the total investment. This amount corresponds to one-third of the industry's sales last year (5.2533 trillion KRW) and about 5.8 times the net profit (303.4 billion KRW).

Considering investments to reduce nitrogen oxide (NOx) emissions, facility investments are expected to increase further over the next 3 to 4 years.

An official from the Cement Association stated, "The industry must expand the recycling of circular resources such as waste plastics and waste tires instead of bituminous coal as a key means to achieve the government's carbon neutrality goals and reduce greenhouse gas emissions. Also, facility construction to comply with strengthened environmental regulations, such as nitrogen oxide emission charges, must be completed as soon as possible to maintain competitiveness."

Another industry official appealed, "To reduce nitrogen oxide emissions, an additional 900 billion KRW must be invested in the introduction of SCR facilities recommended by the government. The increased environmental burden is at a level that the cement industry, whose operating profit has remained stagnant for over a decade, cannot bear on its own."

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