HD Hyundai Launches New Construction Equipment Company
HD Hyundai has officially launched HD Construction Equipment, a newly formed entity resulting from the merger of its affiliate, HD Hyundai Construction Equipment, and HD Hyundai Infracore, which was acquired in 2021. The announcement was made during a launch ceremony held at the company’s Ulsan campus on Thursday, attended by approximately 200 executives and employees, including Chairman Chung Ki-sun, Vice Chairman Cho Young-cheol, and CEO Moon Jae-young, who has been appointed as the inaugural CEO of the new company.
This merger positions HD Construction Equipment as the largest construction machinery company in South Korea, combining the strengths of the country’s top two manufacturers by domestic market share. The new entity is projected to achieve annual sales of around 8 trillion won (approximately $5.8 billion). Chairman Chung expressed optimism about the future, stating, “I hope the passion behind HD Construction Equipment will be channeled into next-generation products and expansion into emerging markets.”
Growth Strategy and Future Goals
HD Construction Equipment has ambitious plans for growth, aiming for annual sales of 14.8 trillion won by 2030, nearly doubling 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. This approach is designed to solidify its position in the competitive construction equipment market.
To achieve its goals, 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, streamline overlapping product lines, and enhance cost competitiveness through economies of scale in procurement and logistics. This strategic reorganization is expected to improve operational efficiency across all aspects of the business, from production to sales.
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Additionally, HD Construction Equipment is set to introduce next-generation construction machinery models in North America, the largest construction equipment market in the world, during the first half of this year. With manufacturing facilities located in South Korea—specifically in Ulsan, Incheon, and Gunsan—as well as overseas production bases in India, China, Brazil, and Norway, the company is well-positioned to meet the demands of a global market.
