HD Construction Equipment, Korea's largest construction equipment company, launched in the new year.
HD Hyundai said institutional sector affiliates HD Hyundai Construction Equipment and HD Hyundai Infracore completed all merger procedures and held a launch ceremony on the 1st at the HD Construction Equipment Ulsan campus. About 200 executives and employees attended, including Chair Chung Ki-sun, Vice Chair Cho Young-cheul and President Moon Jae-young, along with other key group management.
HD Construction Equipment, formed by combining the No. 1 and No. 2 construction equipment corporations in Korea, is the country's largest construction equipment company with annual revenue of 8 trillion won and production bases in Ulsan, Incheon and Gunsan in Korea, as well as in India, China, Brazil and Norway. Moon Jae-young will serve as the first president.
HD Construction Equipment set a goal of 14.8 trillion won in revenue by 2030 and will pursue growth strategies across all business areas, including engines and the aftermarket (AM), centered on its core construction equipment business.
In particular, HD Construction Equipment plans to grow its two construction equipment brands, "HYUNDAI" and "DEVELON," into global top-tier brands through integration synergies.
To that end, it will build a global production system that maximizes the strengths of operating the two brands and leverage economies of scale in common expense areas such as procurement and logistics.
To expand global market share, HD Construction Equipment will lead with next-generation new models. Following Korea and Europe last year, the next-generation new models are set to launch in North America, the world's largest market, in the first half of this year.
HD Construction Equipment also plans to pursue balanced growth by fostering the engine business—which is expanding into power generation, defense and eco-friendly power sources—and the compact equipment business targeting demand in advanced markets as new growth pillars.
HD Hyundai Chair Chung Ki-sun said, "I support HD Construction Equipment's passion for excellence being channeled into next-generation new models and the pioneering of emerging markets," adding, "With a comprehensive overhaul across production, quality and sales, I expect it to become another 'global No. 1' for the group, following shipbuilding."