South Korea’s building and industrial materials maker KCC Corporation said on Wednesday that it has completed construction to expand its third gypsum board manufacturing line in Seosan, South Chungcheong, allowing it to become the country’s largest producer of plastic boards that are used as interior panels in buildings.

According to the company, the facility expansion has allowed KCC Corp. to be capable of producing 24.24 million square meters of gypsum boards annually and increased mass production capacity by 40 percent. Commercial production will begin next month.

The latest expansion has led KCC to become a leader in the country’s gypsum board industry not only in terms of production volume but also capacity and market share. The company plans to solidify its leading position by responding to the rapidly growing demand for plastic boards in which supply has been running short since 2015.

Korea’s gypsum board market that is estimated to be worth 450 billion won ($393.8 million) on an annual basis is held 55 percent by KCC and 45 percent by USG Boral Building Products in Korea.

Gypsum boards are materials generally used to finish the interior of a building. They are widely used in dividing spaces such as materials for walls and ceilings.

Demand for gypsum boards has been growing based on latest trend to build interior walls and ceilings inside hospitals, hotels, and commercial buildings, based on dry construction method by using gypsum boards and light steel and insulation materials instead of wet construction method using concrete.

KCC has been putting out efforts to target the growing market by providing functional gypsum boards with fire prevention, sound insulation, and water-proof functions.

Sales of KCC’s building supplies business that includes gypsum boards have picked up in recent years - up from 1.1 trillion won in 2015 to 1.26 trillion won last year - accounting for 36 percent of the company’s total sales as of first quarter ended March this year.

By Ahn Gab-seong

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]