HD Construction Equipment wins major Hong Kong excavator deal

HD Construction Equipment has won an order for 45 mid-to-large excavators in Hong Kong that will be used for the city's major construction project, beating out Chinese equipment makers who compete on price.

The company said Wednesday it will supply a total of 45 Develon excavators, including seven 53-ton large excavators and 38 mid-to-large excavators ranging from 14 to 36 tons, for the Tung Chung Line extension project led by the MTR Corporation, Hong Kong's rail operator. Since the site sits on reclaimed coastal land with weak soil conditions, demand has emerged for specialized equipment such as long-reach arms capable of working from a distance. HD Construction Equipment expects this to lead to more orders for 80- and 100-ton ultra-large specialty equipment.

The order stands out because it beat Chinese equipment makers by demonstrating fuel efficiency and customer service instead of price, according to the company. The Hong Kong market had largely been limited to small and some mid-sized equipment, and this order marks both a large-volume win and a wider range of models sold.

Demand for construction equipment in the Hong Kong market is expected to be steady. The city has spent roughly 90 billion Hong Kong dollars ($11.5 billion), or about 15 trillion won, a year on public infrastructure projects such as expanding transit networks and developing new towns, according to the Hong Kong government. That figure is expected to rise to an average of 120 billion Hong Kong dollars a year as major projects move forward, including the Northern Metropolis, which will link infrastructure with mainland China.

BY LEE JAE-LIM [[email protected]]