An intermediary holding company, Hyundai Genuine, has been established following the purchase in August of Doosan Infracore, by Hyundai Heavy Industries Group. Doosan Infracore has since been renamed Hyundai-Doosan Infracore.
The new group has targeted the capture of 5 percent of global equipment sales by 2025. The organization said it will develop integrated excavator and wheeled loader platforms, by 2025, that will be utilized by both companies. The two manufacturing businesses will combine their research and development efforts to increase technological competitiveness.
Hyundai Construction Equipment (HCE) and Hyundai-Doosan Infracore will continue to operate under their own management structure and systems, competing as sister companies within the global equipment market. Hyundai Genuine will provide support to both businesses, while maximizing the available synergies between the two.
How Hyundai Genuine works
- Hyundai Construction Equipment and Hyundai-Doosan Infracore to compete within the global equipment market
- Technological synergies will start with joint development of integrated excavator and wheeled loader platforms
- Hydrogen engines to be developed for construction machinery
- R&D to be combined to push technological development
- Further investment in Mergers and Acquisitions, start-up businesses, automation and electrification
Further ahead, new investment will be increased, to secure next-generation business activities. The plans include the development of hydrogen engines for construction equipment, further mergers and acquisitions, investment in start-up businesses and closer industry-university cooperation to develop market-leading expertise in automation and electrification.
Hyundai Heavy Industries Group Chairperson Kwon Oh-gap has vowed to develop the construction equipment business as a core sector of the group, a decision that will be backed by further investment at group level.
Separately, Hyundai Construction Equipment Americas (HCEA) announced that its parent, HCE, plans to invest $170 million in its Ulsan factory to increase production capacity by 50 percent to 15,000 pieces of equipment. The investment will be spread out over four years.
“This increase in manufacturing capability means that Hyundai will be able to address global growth in construction activity,” said Stan Park, president of HCEA. “For North America, this positions us to better meet demand arising from planned investments in infrastructure expansion.”
Hyundai Construction Equipment’s investment is focused on restructuring production lines to maximize and expand production capacity for excavators, wheel loaders, and other types of construction equipment.
