(C) HD Hyundai
ULSAN — HD Hyundai officially launched its unified construction equipment corporation, HD Construction Equipment, following the successful merger of HD Hyundai Infracore and HD Hyundai Construction Equipment. The new entity aims to become a "global top-tier" player, targeting an annual revenue of 14.8 trillion won (approx. $11.2 billion) by 2030.
A New Giant in Global Infrastructure
The inauguration ceremony was held today at the Ulsan Campus, attended by HD Hyundai Chairman Kisun Chung, Vice Chairman Young-cheul Cho, and the inaugural CEO of HD Construction Equipment, Jae-young Moon.
With this merger, HD Hyundai Group has finalized the restructuring of its three core business pillars: shipbuilding, construction equipment, and energy. The unified company now stands as South Korea's largest comprehensive construction machinery provider, boasting a revenue scale of 8 trillion won and a global production network spanning South Korea, India, China, Brazil, and Norway.
Strategic Growth Pillars: Engines, Compacts, and Aftermarket
HD Construction Equipment has outlined a multi-faceted growth strategy focusing on three high-margin sectors to reach its 15-trillion-won goal within five years:
Engine Business: With the upcoming completion of the new Gunsan plant next year, the company plans to aggressively address demands for defense (K2 tank engines) and emergency generators for data centers. The revenue target for this sector is set at 2.5 trillion won.
Compact Equipment: To penetrate the North American and European markets, the company has established a dedicated compact business unit. It aims to complete a full lineup, including mini-excavators (MEX) and compact track loaders (CTL), by 2027, targeting 1.3 trillion won in sales by 2030.
Aftermarket (AM): To ensure a stable revenue stream resistant to economic fluctuations, the company will bolster its service and parts network, aiming for 1.4 trillion won in AM sales by 2030.
Dual-Brand Strategy and Global Expansion
The company will continue to operate its two distinct brands, "Hyundai" and "DEVELON." By streamlining overlapping product lines and leveraging economies of scale in procurement and logistics, HD Construction Equipment intends to maximize cost competitiveness.
A series of next-generation models are slated for release in the North American market this year, serving as the spearhead for increasing global market share.
Chairman’s Vision
In his congratulatory remarks, Chairman Kisun Chung emphasized the group’s ambition to replicate its shipbuilding success in the construction machinery sector. "I expect HD Construction Equipment to become another 'Global Number One' for the group through a complete overhaul of production, quality, and sales," Chung stated.
The merger is seen as a strategic move to optimize the strengths of both former entities—Hyundai’s dominance in large industrial vehicles and Infracore’s prowess in medium-sized excavators and wheel loaders—creating a formidable competitor on the global stage.
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