HD Hyundai Construction, Infracore to use integrated machinery platform

HD Hyundai Co., a South Korean shipbuilding and machinery conglomerate, is building an integrated equipment manufacturing platform for its two construction machinery units, HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co.

The two HD Hyundai Group affiliates also plan to launch integrated sales and parts procurement networks globally to cut costs and enhance price competitiveness, people familiar with the matter said on Tuesday.

Under the plan worked out by Cho Young-cheul, president of HD Hyundai XiteSolution Co., an intermediate construction equipment holding company of the conglomerate, the two units will produce prototypes of construction machinery using the single platform from early next year.

“Through the system integration, Hyundai Construction Equipment and Hyundai Infracore hope to create synergy, cut costs and better compete with global top tiers such as Caterpillar,” said a person with knowledge of the matter.

The project is led by a technical institute under HD Hyundai XiteSolution, he said.

Once up and running, the integrated platform will initially be used to make the companies' flagship models and then applied to other types of small and large construction machines.

The platform will be similar to an integrated vehicle manufacturing platform used by Hyundai Motor Co. and Kia Corp., which apply different design concepts to their respective cars to meet different consumer needs, sources said.

SINGLE GLOBAL DEALERSHIP AND PROCUREMENT NETWORK

Eventually, HD Hyundai Construction Equipment and HD Hyundai Infracore will also integrate their separate sales networks and parts procurement channels across the globe, sources said.

As part of the plan, machinery components manufactured by HD Hyundai Infracore will be used by HD Hyundai Construction Equipment.

“With costs saved from the integration, HD Hyundai wants to invest more in developing new technologies and new equipment,” said one of the sources.

The two HD Hyundai affiliates have often competed for the same or similar client groups since their parent company acquired Infracore from Doosan Group two years ago.

In 2021, Hyundai acquired a controlling stake in Infracore from Doosan Group to pursue nonorganic growth. After the acquisition, it changed the company’s name to Hyundai Doosan Infracore and again relaunched as HD Hyundai Infracore with a new equipment brand name, Develon, early this year.

Write to Hyung-Kyu Kim at khk@hankyung.com

In-Soo Nam edited this article.