Newly merged HD Construction Equipment aims for $10.3 bil. in sales by 2030

HD Hyundai Group Chairman Chung Ki-sun speaks during the launch ceremony of HD Construction Equipment at the company’s headquarters in Ulsan, Thursday. Courtesy of HD Hyundai XiteSolution

HD Hyundai Group’s construction equipment subsidiaries, HD Hyundai Construction Equipment and HD Hyundai Infracore, merged on Thursday to operate as a single company under the new name HD Construction Equipment, aiming for 14.8 trillion won ($10.3 billion) in sales by 2030.

HD Construction Equipment held its launch event at its Ulsan headquarters on the first day of the new year, with HD Hyundai Group Chairman Chung Ki-sun and Vice Chairman Cho Young-chul in attendance.

The merger was approved by shareholders in September last year, attracting attention as Korea’s two leading construction equipment companies set to combine to form the nation’s largest construction equipment firm, with annual revenue projected to reach 8 trillion won.

With HD Hyundai Construction Equipment CEO Moon Jae-young at the helm, HD Construction Equipment will have manufacturing operations in Ulsan, Incheon and Gunsan (North Jeolla Province) in Korea, as well as in India, China, Brazil and Norway.

“We have now restructured manufacturing, quality control and marketing for our construction equipment businesses. It will position us as another global No. 1 following shipbuilding,” Chung said during the event.

HD Hyundai Group Chairman Chung Ki-sun, sixth from left, celebrates the launch of the newly merged HD Construction Equipment at the company’s headquarters in Ulsan on Thursday. Sixth from right is the company’s new CEO, Moon Jae-young. Behind them are excavators produced by HD Hyundai Construction Equipment and HD Hyundai Infracore, which have now merged. Courtesy of HD Hyundai XiteSolution

HD Construction Equipment now aims to introduce its new electric excavator models to additional international markets. The models were launched in Korea and Europe last year and are expected to debut in the United States in the first half of this year.

HD Construction Equipment plans to leverage synergies from the merger to grow its two construction equipment brands — Hyundai and Develon — into leading global brands. To that end, the company will build a global production system that maximizes the benefits of operating dual brands and work to achieve world-class manufacturing competitiveness.

HD Construction Equipment will focus on its engine and aftermarket service businesses this year. Its parent company, HD Hyundai XiteSolution, has expanded its engine business to power generation, defense and eco-friendly sectors. Rising demand for small-sized construction equipment in advanced global markets is also a key priority for the company.

The merger has streamlined the production pipelines of the two companies by eliminating overlapping processes. It has also reduced costs in materials procurement and logistics, giving the new company greater price competitiveness. The merger is expected to enhance the firm’s marketing and after-sales service capabilities as well.