South Korea concrete delivery halt threatens Samsung, SK Hynix chip plant work, media reports


FILE PHOTO: Memory chips by South Korean semiconductor supplier SK Hynix are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo

SEOUL, June 12 (Reuters) - Industrial ⁠action by South Korean truck drivers tasked to ⁠transport concrete is raising concerns over possible delays to ‌major semiconductor plant expansion projects by Samsung Electronics and SK Hynix, South Korean media reported on Friday.

The National Ready-Mixed Concrete Transport Workers' Union ​suspended deliveries in the Seoul metropolitan area ⁠starting on Monday, a ⁠work stoppage it said would involve around 8,000 members as ⁠it ‌demanded higher rates and other changes.

Participating union members also blocked deliveries on Thursday from two concrete ⁠plants in Pyeongtaek, halting the pouring of concrete ​at the construction ‌site for Samsung Electronics' chip plant, the Chosun ⁠Ilbo reported.

Concrete work ​was also halted at SK Hynix's Yongin chip plant after deliveries were cancelled, according to South Korea's Newsis news agency, ⁠citing industry officials.

SK Hynix said in a ​statement the short-term impact is expected to be limited, as the company has adjusted its construction sequence.

Samsung declined to comment, ⁠while the union did not immediately respond to a request for comment.

The union had earlier agreed a tentative deal with concrete manufacturers, but members rejected the proposal on Wednesday ​in a vote, prolonging the stoppage.

The ⁠short-term impact would likely be limited as builders had brought some ​work forward in anticipation of ‌the disruption, Newsis said, but a ​prolonged stoppage could affect longer-term construction schedules.

(Reporting by Joyce Lee and Heekyong Yang; Editing by Tom Hogue)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read