Korean cement makers on Wednesday decided to increase production by 35% quarter on quarter for the next three months to ease concerns about a supply shortage amid the crisis surrounding Ukraine, the ministry said. Industry.
The country is depleting its cement reserves mainly due to increasing investment in environmentally friendly facilities and unexpected growth in demand from builders, while the global supply of bituminous coal used to make cement has been unstable in because of the crisis in Ukraine.
In a meeting with government officials on Wednesday, seven major cement companies agreed to produce a total of 3.77 million tonnes of cement in the second quarter, up 35.7% from the January-March period, according to the Ministry of Trade, Industry and Energy.
The government also plans to supply about 380,000 tons of cement which was to be sold overseas on the domestic market.
Companies have sought to diversify their import channels for bituminous coal. Russian coal accounted for about 54% of Korea’s coal imports in the first quarter, up from 75% last year, as companies increased imports from Australia from 25% to 46% last year.
In a longer-term plan, the companies plan to reduce their reliance on soft coal to produce cement using more environmentally friendly materials.
The government has pledged to allocate 930.6 billion won ($763.54 million) by 2030 starting next year to support such measures.
“We will closely monitor the supply situation and strengthen consultation with relevant industries to ensure a stable supply of cement and other key materials,” a ministry official said.