HD Hyundai Construction Equipment (HCE) and HD Hyundai Infracore (HDI) are merging and will operate under the name HD Construction Equipment from 2025. With this strategic move, the South Korean group aims to strengthen its position in the global market and nearly double its annual turnover. The new merged entity will be provisionally called "HD Construction Equipment". The merger process has officially started and the intended effective date has been set for January 1, 2026.
The new company will continue to operate under two familiar brand names: Hyundai and Develon. Together, these brands currently generate an annual turnover of approximately €5.7 billion. However, the ambition is much higher: by 2030, HD Construction Equipment wants to achieve a turnover of more than €10.5 billion.
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According to HD Hyundai, the merger is intended to make the organization "more agile and efficient," especially now that competition is increasing globally and market conditions are unpredictable. The core business remains construction equipment, but engines and aftermarket services are also mentioned as important growth segments.
The company aims to achieve economies of scale by optimising product lines and specialising production per region. The range is also being expanded: from compact machines to ultra-heavy construction machines, particularly aimed at international growth markets. In addition, there is a strong focus on research and development (R&D), with special attention to electric drive, automation and digital control technologies.
As importer and dealer of Develon earthmoving machines, we are not affected by this merger and will remain active in the sales and service of the beautiful and powerful Develon earthmoving machines. The name Develon will remain unchanged and in 'own' strength.
The merger was announced after separate board meetings on July 1. An extraordinary shareholders meeting will follow on September 16, followed by the required regulatory approvals. If all goes according to plan, the merger will be completed by the end of 2025.
“This merger will drive sustainable growth for HD Hyundai’s construction equipment business,” said Cho Young-cheul, CEO of HD Hyundai XiteSolution. “It will strengthen our global position and mark an important milestone for the South Korean and international construction equipment industry.”
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