HD Hyundai Launches New Construction Equipment Company
HD Hyundai has officially launched HD Construction Equipment, a newly formed entity resulting from the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore. The merger, finalized on Thursday, positions the company as South Korea’s largest construction machinery manufacturer, boasting annual sales of approximately 8 trillion won (around $5.8 billion). The launch ceremony took place at the company’s Ulsan campus, attended by about 200 executives and employees, including Chairman Chung Ki-sun, Vice Chairman Cho Young-cheol, and CEO Moon Jae-young, who will lead the new company.
Chung expressed optimism about the future of HD Construction Equipment, emphasizing the importance of innovation and market expansion. “I hope the passion behind HD Construction Equipment will be channeled into next-generation products and expansion into emerging markets,” he stated. The chairman also highlighted the company’s goal of becoming a global leader, similar to its success in the shipbuilding sector.
Strategic Goals and Market Expansion
HD Construction Equipment aims to achieve ambitious growth targets, setting a goal of 14.8 trillion won in annual sales by 2030. This objective represents nearly a doubling of its current revenue. The company’s growth strategy focuses on enhancing its core construction machinery business while also expanding into higher-margin segments, such as engines and aftermarket services.
To strengthen its market presence, HD Construction Equipment plans to elevate its two flagship brands, Hyundai and Develon, into top-tier global brands. The company will implement a dual-brand strategy, streamlining overlapping product lines to enhance cost competitiveness through economies of scale in procurement and logistics. This strategic approach is expected to position the company favorably in the competitive landscape of the construction equipment industry.
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In addition to its domestic operations, HD Construction Equipment has manufacturing facilities in Ulsan, Incheon, and Gunsan, as well as production bases in India, China, Brazil, and Norway. The company is set to introduce its next-generation construction machinery models in North America, the world’s largest construction equipment market, in the first half of this year. This move underscores the company’s commitment to innovation and its ambition to capture a significant share of the global market.
