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Media reports: South Korea's concrete delivery halt threatens Samsung and SK Hynix chip factory work

South Korean media reported that the industrial action of South Korean truckers tasked with transporting concrete could delay major expansion projects at semiconductor 'plants by SK Hynix and?Samsung Electronics.

The National Ready-Mixed Concrete Transport Workers' Union has suspended deliveries throughout the Seoul metropolitan region starting Monday. It said that this work stoppage would affect?around 8,000 members, as they demanded higher rates and other changes.

The Chosun Ilbo reported that the participating union members blocked deliveries from?two cement plants in Pyeongtaek on Thursday, stopping the pouring concrete at the site of Samsung Electronics's chip plant.

According to South Korea's Newsis, citing industry representatives, concrete work was also halted after deliveries at SK Hynix Yongin's chip plant.

SK Hynix stated in a press release that the impact on the short term is expected to be?limited', since the company has changed its construction sequence.

Samsung refused to comment while the union didn't immediately respond to an?invitation for a remark.

The union had reached a tentative agreement with concrete producers, but its members rejected the deal in a vote on Wednesday, prolonging the strike.

Newsis reported that the short-term effects would be minimal as some builders had already started work in anticipation of disruptions. However, a longer-term stoppage could have a negative impact on construction schedules. (Reporting and editing by Tom Hogue; Heekyong Yaya and Joyce Lee)

(source: Reuters)