HD Hyundai Group Unites Construction Giants
In a significant move for the construction equipment industry, HD Hyundai Group has officially merged its subsidiaries, HD Hyundai Construction Equipment and HD Hyundai Infracore, into a single entity named HD Construction Equipment. The merger, which was approved by shareholders last September, aims to generate sales of 14.8 trillion won (approximately $10.3 billion) by 2030. The launch event took place at the company’s headquarters in Ulsan, attended by key executives including Chairman Chung Ki-sun and Vice Chairman Cho Young-chul.
Strategic Goals and Global Expansion
The newly formed HD Construction Equipment is set to become the largest construction equipment firm in South Korea, with projected annual revenues reaching 8 trillion won. Under the leadership of CEO Moon Jae-young, the company will operate manufacturing facilities in Ulsan, Incheon, and Gunsan, as well as international sites in India, China, Brazil, and Norway. This strategic consolidation aims to enhance operational efficiency by restructuring manufacturing, quality control, and marketing processes.
During the launch ceremony, Chairman Chung emphasized the merger’s potential to position HD Construction Equipment as a global leader, akin to the company’s success in shipbuilding. The firm is also set to introduce new electric excavator models to international markets, following their successful launch in Korea and Europe last year. The U.S. market is expected to see these models debut in the first half of this year.
To capitalize on the merger, HD Construction Equipment plans to develop its two brands, Hyundai and Develon, into prominent global names. The company aims to create a robust global production system that maximizes the advantages of operating dual brands while enhancing manufacturing competitiveness. This year, the focus will also be on expanding its engine and aftermarket service businesses, with a particular emphasis on meeting the rising demand for small-sized construction equipment in advanced global markets.
Operational Efficiency and Cost Reduction
The merger has streamlined production pipelines by eliminating redundant processes, resulting in reduced costs for materials procurement and logistics. This operational efficiency is expected to enhance the company’s price competitiveness in the market. Additionally, the merger is anticipated to improve HD Construction Equipment’s marketing and after-sales service capabilities, further solidifying its position in the industry.
As HD Construction Equipment embarks on this new chapter, the company is poised to leverage synergies from the merger to achieve its ambitious sales goals and expand its global footprint. With a clear focus on innovation and efficiency, the newly merged entity is set to redefine the landscape of the construction equipment sector.
