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The Economic Times
The Economic Times

South Korea concrete delivery halt threatens Samsung, SK Hynix chip plant work: Report

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.

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