HD Construction Equipment launches after merger of Korea’s two largest machinery firms

HD Construction Equipment officially launched on Thursday following the merger of HD Hyundai’s two construction machinery units, setting a goal to nearly double sales to 14.8 trillion won ($10.2 billion) by 2030.

HD Hyundai said HD Hyundai Construction Equipment and HD Hyundai Infracore, which rank first and second in Korea’s construction machinery industry by market share, completed all merger procedures and held a launch ceremony at the HD Construction Equipment Ulsan Campus on Thursday.

About 200 executives and employees attended the event, including Chairman Chung Ki-sun, Vice Chairman Cho Young-cheul and CEO Moon Jae-young. Moon will serve as the first chief executive of the merged company.

HD Construction Equipment aims to raise annual revenue to 14.8 trillion won by 2030 from about 8 trillion won currently. The company plans to drive growth across its entire business portfolio, centered on construction machinery, while expanding its engine and aftermarket operations.

The company said its next-generation models, launched in Korea and Europe last year, are set to enter the North American market this year, a move it said would help raise its global market share.

HD Construction Equipment said it aims to position its Hyundai and Develon brands more competitively in global markets. The company plans to strengthen its global production system, reduce overlapping product lines and improve cost competitiveness by leveraging economies of scale in areas such as purchasing and logistics.

It also plans to develop its engine business, which is expanding into power generation, defense and environmentally friendly sectors, as well as compact equipment targeting demand in advanced markets, as new growth drivers.

“I hope HD Construction Equipment’s drive for excellence will carry over into next-generation models and the development of emerging markets,” Chung said, adding that “with a comprehensive overhaul across production, quality and sales, the company is expected to become another global No. 1 for the group, following shipbuilding.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY NA SANG-HYEON [[email protected]]