Rising 'Robot Revolution'... Doosan Robotics, Ranked 5th Worldwide, Emerges as a 'Hyoja' Subsidiary

Doosan Plans Overseas Subsidiaries in Europe Following North America
Stock Price Rises 30% in Three Months as Business Growth Becomes Visible

Working with a collaborative robot. Photo by Doosan

[Asia Economy Reporter Choi Seoyoon] Doosan Robotics, the subsidiary of Doosan Group responsible for collaborative robots (robots that physically interact with humans), has rapidly emerged as a key profit driver by maintaining high growth. Amid expectations of improved performance, its stock price has risen about 30% over the past three months, attracting market attention despite the overall downturn. The company plans to actively expand its overseas bases to secure orders in line with the global demand expansion.

According to industry sources on the 21st, Doosan Robotics is expected to establish a European subsidiary in Germany as early as this year. This will be the second overseas subsidiary established this year alone. A Doosan official said, "Following the establishment of the North American subsidiary, we are preparing to set up a European subsidiary," adding, "We will complete it as soon as possible considering market conditions."

Earlier in June this year, Doosan Robotics America was established in Plano, Texas, USA, with Alex Lee, a former General Motors (GM) executive, appointed as the general manager. According to local media, Alex Lee stated, "The North American market is a source of existing and potential customers across various vertical markets (industries with specific needs) from automotive to manufacturing," and added, "As Doosan Robotics’ largest single market, we will work more closely with partners."

Doosan Holds 90.91% Stake... Stock Price Rises Over 30% in Three Months

Doosan Robotics ranks 5th globally and 1st domestically in the collaborative robot market, which is expected to grow at an average annual rate of over 40%. The largest shareholder is Doosan, holding a 90.91% stake. Doosan’s stock price has surged more than 30% in the past three months, while the KOSPI index fell by about 3% during the same period. The market consensus attributes this to the accelerated growth of Doosan Robotics’ business.

Doosan Robotics is one of the three major new growth engines of Doosan Group, alongside Doosan Mobility Innovation (fuel cell drones) and Doosan Logistics Solution (logistics). Kim Soohyun, a researcher at DS Investment & Securities, said, “The group’s global sales network, Doosan Bobcat’s brand image, Doosan Infracore’s technological synergy, and the group’s active investment in developers have greatly contributed to establishing a foothold in the global market,” adding, “The global market is expected to grow at an average annual rate of 67% until 2024.”

Sales Grow 275% in Three Years... Expected to Turn Profitable Next Year

Sales have increased for three consecutive years. Sales, which were 9.9 billion KRW in 2018, grew 275% over three years to 20.2 billion KRW last year. More than 65% of sales come from overseas markets such as North America and Europe. This year, sales are expected to increase by about 111% compared to the previous year, surpassing 70 billion KRW for the first time. Operating losses are also decreasing. Last year’s operating loss was 7.1 billion KRW, reduced by half in one year. The market expects profitability to return next year. Doosan Robotics’ annual production capacity is about 2,200 units, with plans to expand to 10,000 units by 2025.

Doosan Robotics has the largest lineup of 10 types among global collaborative robot companies. These robots are used for delicate tasks requiring human dexterity, operations in narrow spaces, and simultaneous transport of items with various weights. In particular, the H series has a payload capacity of 25 kg, making it the collaborative robot capable of carrying the heaviest items worldwide. The robot weighs only 75 kg, about half the weight of competing products.

At the end of 2017, a factory capable of producing up to 10,000 collaborative robots annually was completed in Suwon, Gyeonggi Province. Notably, in key processes, humans and collaborative robots work together, with ‘robots producing robots.’ Choi Namgon, a researcher at Yuanta Securities, said, “Doosan Robotics will enter the food and beverage retail sector in the second half of this year by securing a low-cost line priced at around 10 million KRW,” adding, “Sales growth will become more prominent from next year when related orders begin in earnest.”

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