HD Hyundai targets $11bn in revenue as it merges construction entities

HD Construction Equipment will operate two distinct brands – Hyundai and Develon – and will have a consolidated revenue of KRW 8 trillion (US$6.2 billion).

The combined business will aim to establish itself as a leading global player, with a target of KRW 14.8 trillion (US$11 billion) in revenue by 2030.

HD Hyundai said that the merger would enhance its agility in response to market demand “amid intensifying competition and global uncertainties“.

Its core business area will be construction equipment, supplemented by growth in engines and aftermarket service.

It also plans to achieve economies of scale by optimising product lines and specialising production facilities by region.

At the same time, it will expand its compact equipment business, establishing a full line-up ranging from compact to ultra-large construction machinery.

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Meanwhile, there will be a focus on research and development (R&D) in electrified and smart construction equipment.

The move comes after separate board meetings held by both HD Hyundai Construction Equipment and HD Hyundai Infracore on 1 July.

An extraordinary shareholders’ meeting will follow which is scheduled for 16 September, along with necessary regulatory reviews.

Cho Young-cheul, president and CEO of HD Hyundai XiteSolution, said, “This merger will drive sustainable growth for the Construction Equipment Division of HD Hyundai, helping us strengthen our position in the global market and serving as a significant milestone in advancing Korea’s construction equipment industry.”