Hyundai Construction invests to take advantage of construction ‘boom’
20 December 2021
Hyundai Construction Equipment (HCE) will invest US$170 million in its Ulsan factory in South Korea, its major production base, in a drive to improve its competitiveness in light of the strength of the global construction equipment market.
The investment is to be made over a period of four years, with the aim of expanding the factory’s production capacity and simplifying its manufacturing processes.
This is HCE’s largest investment since its split from Hyundai Heavy Industries.
Another focus of the investment will be on restructuring production lines, in order to maximise their efficiency and expand production capacity of excavators, wheeled loaders, and other types of construction equipment.
HCE said that it expects to increase its market share in each region by effectively responding to the current upward trend of the global construction equipment market by expanding its production capacity with this investment.
According to industry specialist Off-Highway Research, the sales volume of global construction equipment is forecast to reach 1.08 million units per year by 2025.
HCE said it confirmed its decision after studying the favourable conditions of the global construction equipment market, aligned with its plan to develop a construction equipment business within the group.
CEO of HCE, Choi Cheol-gon, said, “Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top five, the goal of the construction equipment division of the Hyundai Heavy Industries group. With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”
The news report from HCE added that the investment would reflect ESG factors, such as the use of eco-friendly sub-materials when conducting interior and exterior finish work, in the factory, and to reduce risk factors between work processes by configuring the production lines in a way that further improves workers’ safety.