en.Wedoany.com Reported - A survey released by the Korea Cement Association has shown that the total equipment investment plan of major domestic cement member companies for this year stands at 429.7 billion won.

This scale represents a decrease of approximately 10% compared to last year's 472.6 billion won, and a 13.9% drop from the average equipment investment performance of 499.2 billion won over the past five years.

To accelerate greenhouse gas reduction for early carbon neutrality and to respond to the government's strengthened environmental regulations, the cement industry has made advance investments since 2020, with the 2024 investment plan reaching a recent high of 578.8 billion won. Subsequently, due to the downturn in the construction economy leading to a sharp decline in cement shipments, equipment investment plans have declined for two consecutive years since last year.

In this year's investment plan, environmental and safety-related investments amount to 384.4 billion won, accounting for approximately 89.5% of the total investment. An official from the Korea Cement Association stated that despite operational difficulties in the industry, investment in environmental and safety equipment remains the top priority for the cement sector, a trend expected to continue in the future.

The cement industry is currently facing multiple pressures, including rising logistics costs due to the freight union's safe freight rate system, soaring oil prices triggered by the US-Iran war, and increased production costs from ethylene shortages, making the outlook for profit improvement unclear. Industry insiders worry that, amid the ongoing downturn in the construction economy, if the funds required for installing SCR (Selective Catalytic Reduction) devices to reduce nitrogen oxide emissions are factored in, the industry's operational difficulties will further intensify. According to regulations, starting from July 2027, due to stricter nitrogen oxide emission standards, the cement industry must install SCR devices. The association official called for active government attention and support to promote the recovery of the construction economy and ensure the development of the entire cement industry.

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