Hyundai Construction Equipment Secures Large Order of 534 Construction Machines in Russia

[Asia Economy Reporter Jeong Hyunjin] Hyundai Construction Equipment, a subsidiary of Hyundai Heavy Industries Group's construction machinery division, announced on the 26th that it has successfully secured orders for more than 500 units of large-scale construction equipment in Russia.

This month alone, Hyundai Construction Equipment signed contracts with Russian mining companies and construction firms for a total of 534 units, including 510 excavators, 15 wheel loaders, and 9 skid loaders. These machines are scheduled to begin delivery from January next year and will be deployed at local coal mining sites and construction sites in Russia during the first quarter of the same year.

With this, Hyundai Construction Equipment has sold about 1,500 units of construction equipment in Russia this year, including 21 units of 125-ton ultra-large excavators, achieving sales approximately three times higher than the previous year. Hyundai Construction Equipment recorded sales of about 140 billion KRW through the third quarter, an increase of 171% compared to the same period last year.

The construction equipment market in Russia, which has abundant coal reserves, has a bright outlook. According to the "2021 World Energy Statistics Analysis" published by British Petroleum (BP), the world's largest global energy company, out of the world's total coal reserves of 1,074.1 billion tons, about 15%, or 161.1 billion tons, are concentrated in Russia. In particular, as global raw material prices have surged, demand for construction equipment in Russia continues to expand. Additionally, China, which is currently experiencing a severe power shortage, is increasing coal imports from neighboring Russia, leading to a rising demand for construction equipment for coal mining.

A Hyundai Construction Equipment official stated, "Due to the rise in international coal prices, sales of large construction equipment over 25 tons, which are highly profitable, are continuously increasing mainly in emerging markets such as Russia," adding, "We have stably secured an order backlog of about 4,000 units for five months in these regions, and we will do our best to maximize profits through differentiated sales activities tailored to customer demands by region."

Meanwhile, following Russia, Hyundai Construction Equipment is expected to achieve its highest annual performance by successfully targeting emerging markets such as Brazil, Chile, and Colombia in Latin America, recording sales exceeding 300 million USD.

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