Hyundai Heavy Industries Acquires Doosan Infracore... Aiming for Global Top 3 in Construction Machinery Within 10 Years

Hyundai Heavy Industries Rapidly Enters Top 10 Global Construction Equipment Market Share
Dominates Both Large and Small Markets
Research and Development Synergy Expected

[Asia Economy Reporters Hwang Yoon-joo, Lee Ki-min] Hyundai Heavy Industries has been selected as the preferred negotiator for the sale of Doosan Infracore. Hyundai Heavy Industries aims to become a top 3 company in the global construction machinery market within 10 years through the acquisition of Doosan Infracore.

According to investment banking (IB) industry sources on the 10th, Doosan Group has selected the Hyundai Heavy Industries-KDB Investment consortium as the preferred negotiator for the sale of Doosan Infracore to the creditors including the Korea Development Bank. Hyundai Heavy Industries plans to finalize the acquisition of Doosan Infracore through about two weeks of due diligence and detailed negotiations, followed by a board resolution.

According to the Yellow Table published by KHL, a UK-based construction heavy equipment specialist magazine, Doosan Infracore including Doosan Bobcat holds a 3.3% share of the global market, ranking 9th. Even excluding Doosan Bobcat, Doosan Infracore’s market share (1.4%) remains within the top 10, while Hyundai Heavy Industries’ subsidiary Hyundai Construction Equipment (1.2%) ranks 22nd. Upon completion of the merger, Hyundai Heavy Industries (2.6%) will enter 13th place globally, achieving economies of scale. In particular, joint procurement of raw materials by Hyundai Heavy Industries and Doosan Infracore can reduce costs, thereby enhancing price competitiveness as an added benefit.

Strong synergy is also expected in terms of business portfolio. Hyundai Heavy Industries has strengths in the medium to large-sized sector, while Doosan Infracore excels in the small-sized segment.

Doosan Infracore is especially recognized for its global competitiveness in the construction machinery field. It is expected to strengthen Hyundai Heavy Industries’ overseas market share. Additionally, Hyundai Heavy Industries anticipates a 'win-win' situation in the research and development (R&D) sector as well.

A senior official from Hyundai Heavy Industries stated, "By realizing economies of scale and establishing a joint dealer network, we can build competitiveness on the global stage. In particular, through joint R&D on future technology platforms such as electric excavators and unmanned/automation, we expect to gain competitiveness that surpasses the current level."

This content was produced with the assistance of AI translation services.