HD Hyundai officially launched HD Construction Equipment on Thursday, a newly integrated construction machinery company created through the merger of its affiliate HD Hyundai Construction Equipment with HD Hyundai Infracore, which it acquired in 2021.
The merger brings together South Korea's No. 1 and No. 2 construction equipment manufacturers by domestic market share, creating the country's largest comprehensive construction machinery company with annual sales of about 8 trillion won ($5.8 billion).
HD Hyundai said all merger procedures were completed, with the new entity formally inaugurated at a launch ceremony held at its Ulsan campus. About 200 executives and employees attended the event, including HD Hyundai Chairman Chung Ki-sun, Vice Chairman Cho Young-cheol and CEO Moon Jae-young, who is appointed as the inaugural chief executive officer of HD Construction Equipment.
"I hope the passion behind HD Construction Equipment will be channeled into next-generation products and expansion into emerging markets," Chung said.
"By reorganizing every aspect of operations, from production to quality to sales, we expect HD Construction Equipment to grow into the group's next global No. 1," the chairman added, highlighting its potential to become another global leader for the group following its shipbuilding business.
HD Construction Equipment has set a target of 14.8 trillion won in annual sales by 2030, nearly doubling its current revenue. The growth strategy centers on strengthening its core construction machinery business while expanding higher-margin segments such as engines and aftermarket services.
The company said it also aims to elevate its two flagship equipment brands Hyundai and Develon into top-tier global brands, leveraging dual-brand strategy while streamlining overlapping product lines and enhancing cost competitiveness through economies of scale in procurement and logistics.
HD Construction Equipment is expected 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.
According to HD Hyundai, the newly formed company has manufacturing facilities across South Korea — in Ulsan, Incheon and Gunsan — as well as overseas production bases in India, China, Brazil and Norway.
herim@heraldcorp.com
