HD Construction Equipment launches with ambitious goals

Story Highlights

• HD Construction Equipment
• Hyundai
• Develon

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HD Construction Equipment, formed by the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore, announced an ambitious launch on New Year’s Day. On January 1st, HD Hyundai held the launch ceremony for HD Construction Equipment at its Ulsan campus. The event marked the successful completion of all merger procedures between its construction equipment subsidiaries. It was attended by Chairman Chung Ki-sun, Vice Chairman Cho Young-cheul, President Moon Jae-young, and approximately 200 executives and employees.

The merger of Korea’s two largest construction machinery companies has created HD Construction Equipment, the country’s largest comprehensive construction machinery firm, with annual sales of 8 trillion won. The company operates production facilities in Ulsan, Incheon, and Gunsan, as well as in various international locations, including India, China, Brazil, and Norway. Moon Jae-young has been appointed as the company’s inaugural President.

The company aims to achieve sales of 14.8 trillion won by 2030, a 95% increase from 2024. As of 2025, HD Construction Equipment is ranked 14th globally. The company will focus on growth across all business areas, with particular emphasis on its core construction equipment sector, its highly profitable engine business, and aftermarket (AM) services.

Specifically, HD Construction Equipment intends to leverage synergies between its two construction equipment brands, HYUNDAI and DEVELON, to establish them as globally recognized top-tier brands. To achieve this, it will establish a global production system that enhances the benefits of a dual-brand strategy while maintaining world-class production competitiveness.

The rollout of the next-generation model will be key to expanding global market share. This new model showcases technological advancements of HD Hyundai’s construction equipment division. Following successful launches in Korea and Europe, it is set to debut in North America—the world’s largest market—during the first half of this year. The next-generation model is a smart excavator that delivers improved fuel efficiency and productivity, equipped with an advanced Full Electro-Hydraulic (FEH) system.

HD Construction Equipment also plans to significantly improve the cost competitiveness of this next-generation model. This will be achieved by minimizing overlap in product lineups, focusing on each brand’s flagship products, and leveraging economies of scale in shared costs such as procurement and logistics.

By leveraging its sales and A/S networks, the company aims to accelerate market penetration. Additionally, it plans to identify new growth opportunities by expanding its engine business into sectors such as power generation, efense, and eco-friendly energy sources, while also developing its compact construction equipment line to meet the demands of advanced markets, ensuring balanced growth.

At the launch of HD Construction Equipment, HD Hyundai Chairman Chung Ki-sun encouraged the newly integrated company to take the lead in the industry. He stated, “I anticipate that HD Construction Equipment’s relentless pursuit of excellence will facilitate its entry into emerging markets and drive the development of next-generation models. By restructuring production, quality, and global sales, we aim for you to become our next ‘Global No. 1,’ following the success of our shipbuilding business.”