HD Hyundai's construction equipment subsidiaries, HD Hyundai Construction Equipment and HD HYUNDAI INFRACORE, will be reborn as 'HD Construction Equipment (tentative name)' through a merger.
HD Hyundai Construction Equipment and HD HYUNDAI INFRACORE held board meetings on the 1st to approve the merger agenda between the two companies. The merger will be carried out by issuing new shares of HD Hyundai Construction Equipment, which will be the surviving company, to the shareholders of HD HYUNDAI INFRACORE. According to the merger ratio, 0.1621707 shares of HD Hyundai Construction Equipment common stock will be allocated for each share of HD HYUNDAI INFRACORE common stock.
After completing the follow-up procedures such as the extraordinary shareholders' meeting and corporate combination review scheduled for September 16, HD Hyundai Construction Equipment will launch as HD Construction Equipment on January 1 next year. This merger was initiated to respond quickly to market demands amid ongoing global uncertainty and intensifying competition and to secure future technological capabilities and cost competitiveness.
The merged corporation, HD Construction Equipment, will operate two construction equipment brands: 'Hyundai (HYUNDAI)' and 'Develon (DEVELON).' Furthermore, HD Construction Equipment aims to grow across all business areas, including engines and aftermarket services, with a goal of achieving over 14.8 trillion won in sales by 2030, making it a global leader.
With the merger of the two subsidiaries, a unified decision-making system has become possible. HD Construction Equipment plans to optimize its product lineup and specialize its regional production systems to secure economies of scale. At the same time, it plans to establish a full lineup of construction equipment ranging from compact to ultra-large sizes. A representative from HD Hyundai Construction Equipment noted, 'This merger will enable a unified decision-making system, accelerating the acquisition of competitiveness and growth momentum.'
Jo Young-cheol, president of HD Hyundai XiteSolution, said, 'This merger in the HD Hyundai construction equipment institutional sector will become a catalyst for sustainable growth,' and added, 'It will serve as a new milestone in the development of Korea's construction equipment industry.'