Ssangyong C&E to Move Headquarters to Donghae, Expects Move to Benefit Local Economy and Balanced National Development

[Financial News] Ssangyong C&E will relocate its Seoul headquarters to Donghae, Gangwon Province, where its main production base, the Donghae plant, is located. The move is intended to help the company respond proactively to rapidly changing market conditions, including the downturn in the construction industry. It plans to place its environmental business division, a new growth engine, at the Yeongwol plant as part of a dual-hub system.
According to industry sources on the 15th, Ssangyong C&E held an extraordinary general meeting of shareholders at its Seoul headquarters on the 14th and approved an amendment to its articles of incorporation to change its headquarters address from Seoul to Donghae, Gangwon Special Self-Governing Province. The company plans to begin carrying out headquarters operations at the Donghae plant in December.
The move is seen as a measure to improve operational efficiency in response to weak cement demand stemming from the downturn in the construction industry. The plan is to move management-support functions, which have been separated from production facilities, to the production site to speed up decision-making and improve the efficiency of production and logistics operations.
Ssangyong C&E established a large-scale production base in Gangwon Province, starting operations at its Yeongwol plant in 1964 and its Donghae plant in 1968. Of its approximately 1,100 employees, around 120 work at its headquarters in Seoul’s Jung-gu district. Its Donghae plant, the company’s main production facility, has an annual cement production capacity of 11.5 million tonnes.
The key to the reorganization is a dual-hub system centered on Donghae and Yeongwol. Management-support functions, including planning, accounting, support and auditing, will move to the Donghae plant to strengthen links with the production site. The environmental business division, a new growth engine, is to move to the Yeongwol plant to build expertise in each business area.
However, not all headquarters functions will be moved outside the capital region. Sales and finance and IT functions, which require coordination with customers in the Seoul metropolitan area, will continue to operate primarily out of the existing Seoul office. Production and management-support functions will be concentrated at the sites, while sales and other external-facing operations will retain a base in the capital region.
The reorganization is also in line with broader efforts across the cement industry to improve management efficiency. As weak construction activity delays a recovery in demand, cement companies are working to reduce costs by rationalizing assets, adjusting production hubs and integrating organizations. Ssangyong C&E also plans to strengthen its cost and quality competitiveness by relocating headquarters functions.
The local economy is also expected to see changes. The relocation of key management functions to Donghae and Yeongwol is expected to expand ties with local partner companies and could have a positive impact on hiring local talent.
A Ssangyong C&E spokesperson said, “This is an innovation in our management system that goes beyond simply changing the workplace. It is intended to strengthen the connection between production sites and management functions and enhance the company’s competitiveness through dual hubs in Donghae and Yeongwol.” The spokesperson added, “As a local company representing the Gangwon region, we will strengthen cooperation with local communities and actively fulfill our social responsibilities, including expanding the recruitment of local talent.”

[email protected] Kim Hyun-cheol Reporter