Hyundai Construction Equipment Co., an affiliate of major shipbuilder Hyundai Heavy Industries Co., has seen a sharp rise in the sales of its excavators in China this year, backed by a recovery in the construction sector, industry sources said Friday.

According to the sources, the company sold some 1,600 excavators in the first four months of the year, nearing last year's sales of 1,900 units in total.

Demand for construction equipment has been on the rise in China on increased budget spending in infrastructure.

China's economy grew 6.9 percent in the first quarter of the year from a year earlier, higher than its annual growth estimate of 6.5 percent, with its fixed investments rising 9.2 percent over the cited period.

"On the back of an expanded sales network and improved quality, South Korean firms are faring well in China," an industry source said.

In the January-April period, a total of 52,000 excavators were sold in China, more than doubling from a year earlier, the sources said.

"The Chinese government increased spending for urbanization and the construction sector there is booming, and the trend is likely to continue for the time being," said Cho Cheol-hee, an analyst at Korea Investment & Securities Co. (Yonhap)