Daedong Signs 360 Billion KRW Tractor OEM Contract with Doosan Bobcat's US Subsidiary

Global OEM Additional Customer Acquisition
Synergy Expected from Expanded Investment in New Businesses

Daedong announced on the 9th that it has signed an Original Equipment Manufacturer (OEM) supply contract for tractors with Doosan Bobcat's U.S. subsidiary. The supplied products include small to medium-sized tractors and powertrains ranging from 20 to 70 horsepower, with a contract value of 361.2 billion KRW. This amount corresponds to approximately 25.2% of Daedong's consolidated sales last year. The contract period is four years, from 2025 to 2028.

Daedong and Doosan Bobcat employees are taking a photo to commemorate the contract. Photo by Daedong

Daedong has maintained a mutually progressive partnership with Doosan Bobcat, starting with a joint tractor development contract in 2018, followed by a 303.6 billion KRW OEM supply contract for 20 to 60 horsepower tractors and powertrains in 2019, and a 70 billion KRW multi-cylinder diesel engine supply contract in 2021.

Daedong Group achieved a cumulative order amount of approximately 1.8 trillion KRW this year alone, combining the 360 billion KRW tractor OEM contract between Daedong and Doosan Bobcat, and the 1.42 trillion KRW contract secured by Daedong Gear to supply electrification parts to Hyundai Motor Company, Hyundai Transys, and others.

In this regard, the expectations include ▲ securing competitiveness in raw material procurement through increased tractor production ▲ proving production capabilities through long-term supply and acquiring additional global OEM customers ▲ expanding investment capacity for new businesses of Daedong Gear and Daedong Metal, which supply tractor mission and engine parts ▲ and synergy effects in electrification technology necessary for the group’s robotics and mobility businesses.

Park Junsik, head of Daedong’s CustomerBiz division, said, "This contract once again demonstrates that Daedong’s products possess the performance and quality competitiveness to meet the high demands of our customers."

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