TRUCKERS STRIKE IMPACT CONCRETE SUPPLY

[Anchor Lead]

The continued strike by the Cargo Truckers Solidarity increasingly dealing a blow on construction sites due logistics disruptions. The suspension of ready-mix concrete production is also pushing back construction on multiple sites. The damage is even more severe to small to mid size businesses.

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This ready-mix concrete company had to cut production last week, and has eventually suspended production altogether this week. It cannot receive enough concrete to resume production despite some supply resumption following the government's return-to-work order.

[Soundbite] Hong Ki-young(CEO of ready-mix concrete firm) : Ready-mix concrete is entirely made-to-order, nothing else. All our employees and drivers are waiting at home."

The suspension of ready-mix concrete production has affected multiple construction sites. No one can say for sure when concrete supply will resume. Construction companies have no choice but to coat reinforcing rods temporarily to prevent corrosion. About 60 percent of construction sites nationwide have been affected so far.

[Soundbite] (Construction firm staff(VOICE MODIFIED)) : "We need to finish as much work as possible before winter starts. We can only catch up if the strike ends as soon as possible."

While large construction sites can find alternatives, small ones can do little to solve the problem. Even if concrete supply resumes, small and mid sized builders will likely be the last to receive it.

[Soundbite] (Construction firm staff(VOICE MODIFIED)) : "All construction sites are struggling now. It's even harder for small firms. If concrete is split among all builders, small ones can't receive it."

The Korea Cement Association believes the supply of ready-mix concrete will be restored to half its normal level this weekend. Some 50 gas stations nationwide have run out of gas. The government says transportation disruptions in major sectors have caused damage amounting to one trillion 600 billion won over the seven days of the unionized truckers' general strike.