As the construction industry downturn prolongs, the downstream industries such as cement and ready-mixed concrete are also struggling. The building materials industry has begun to seek breakthroughs by developing new technologies and exploring new businesses to overcome the sluggish market.
According to the Korea Cement Association, cement shipments last year totaled 44.19 million tons (t). This figure represents a decrease of about 11.8% compared to the previous year (50.96 million tons). In particular, domestic shipments decreased to 43.60 million tons, a drop of 13.2% from the previous year's 50.23 million tons.
In the first two months of this year, domestic cement shipments also decreased to 4.45 million tons, down 24.8% from the same period last year (5.91 million tons).
The ready-mixed concrete industry is also experiencing a downward trend in production. According to the Korea Ready-Mixed Concrete Association, the annual production of ready-mixed concrete last year was 11.2 million cubic meters (㎥). Following a decrease from 14.134 million cubic meters in 2022 to 13.583 million cubic meters in 2023, last year also saw a decrease of about 17.5%.
The recession in the building materials industry is largely influenced by high interest rates and rising construction costs, which have prolonged the downturn in the construction sector. After the spread of the novel coronavirus (COVID-19), construction costs rose by about 30%, and with the significant reduction in the number of housing permits and construction starts, the demand for cement and ready-mixed concrete, which are downstream industries in construction, also decreased.
The building materials industry has started to secure future revenue sources by exploring new businesses that are relatively less affected by the construction downturn.
KCC is targeting the logistics market through its autonomous painting robot "Smart Canvas," which combines artificial intelligence (AI) with autonomous mobile robot (AMR) technology. Smart Canvas is an advanced robot that automates horizontal surface painting tasks. It features autonomous driving capabilities that accurately recognize painting spaces and can maintain precise driving and painting even in the presence of obstacles or unexpected situations.
Sampyo Group has also identified autonomous parking robots as a new business and has officially launched the venture. Sampyo Group established a joint venture, SP & Mobility, with Semper M, which boasts world-class robot parking technology, in 2022. SP & Mobility possesses the "MPSystem" technology that combines parking robots and transportation systems using an Automated Guided Vehicle (AGV) method. It can transport vehicles weighing over 3 tons, and the 99 mm high parking robot can lift vehicles vertically on each floor, allowing for tight parking in limited spaces.
Eugene Group is developing a "wildfire suppression disaster robot" that removes trees and weeds near fire sites to prevent further spread of flames. TXR Robotics, a subsidiary of Eugene Group, is jointly developing this robot with GuoXing Intelligent, a Chinese firefighting robot specialist.
Hanil Cement is also responding to the construction industry's recession by promoting its dry mortar brand "Remital," which is primarily used for maintenance and remodeling. Dry mortar is a mixture of cement and sand that is dried, allowing it to be utilized for construction simply by adding water, gaining praise for its convenience.
In addition, they are focused on developing new products and enhancing technologies.
Eugene Group, in collaboration with HDC Hyundai Development Company, has developed "latex-press concrete" that significantly reduces crack formation. This method mixes latex particles into concrete to form a film layer that minimizes cracks. It is highly durable and offers excellent constructability compared to traditional fiber-reinforced concrete, making it applicable to various construction sites where waterproofing is essential as it protects the waterproof layer.
KCC has launched an external insulation product, "WaterSafe Nature 24K," that reduces density by about 40% from the previous 40K (㎏/㎥) to 24K while maintaining insulation performance. They also introduced "Gyptex PLUS," which is an expanded version of the non-combustible ceiling material "Gyptex," with a specification 1.5 times larger.
Sampyo Group has begun to activate the precast concrete construction method. Sampyo P&C, a subsidiary of Sampyo Group, is jointly developing the bridge deck slab precast concrete method with Dongil Construction. This method involves precast elements being manufactured at the factory and then transported and assembled on-site, allowing for mass production and superior durability with consistent quality compared to traditional methods of producing concrete on-site.
An official from the building materials industry noted, "As the downturn in the construction sector reduces the number of construction sites, the demand for building materials is also decreasing," adding that "building materials corporations are continuously launching materials that enhance construction convenience in preparation for the time when the construction market recovers."