HD Hyundai Construction Equipment Ulsan Plant Transformed into 'Smart Factory'

About 200 Billion KRW Invested in Facility Upgrades
Production Capacity Increases by 56% to 15,000 Units
Introduction of Welding Robots and AI Quality Inspection

HD Hyundai Construction Equipment, a construction machinery affiliate of HD Hyundai, has transformed its existing Ulsan plant into a smart factory that will serve as a global production hub.

On May 20, HD Hyundai Construction Equipment held a completion ceremony for the Ulsan Campus Smart Factory in Dong-gu, Ulsan, attended by HD Hyundai Chairman Kwon Ohgap, Senior Vice Chairman Chung Kisun, and HD Hyundai Site Solution President Cho Youngcheol. Previously, HD Hyundai Construction Equipment launched an advancement project in 2023, investing 200 billion KRW to upgrade facilities and expand production capacity at the existing Ulsan plant. As part of this project, Plant 1 and Plant 2, located on a 234,710-square-meter (71,000-pyeong) site, were integrated into a single facility. The project also included the expansion and reorganization of production lines, the construction of a quality assurance center, and the building of a new receiving building.

HD Hyundai Construction Equipment Ulsan Campus view. Provided by HD Hyundai Site Solution

HD Hyundai Construction Equipment explained that, with the integrated plant system, it unified its production and logistics lines, introduced a real-time product location tracking system across all processes to optimize workflow, and maximized production efficiency. In addition, welding robots and vision sensors were deployed on the fabrication parts production line to enhance quality consistency, while the construction equipment assembly line was equipped with automated guided vehicles (AGVs) and an artificial intelligence (AI)-based quality inspection system, increasing the proportion of automated processes. The company stated that, as a result, labor productivity is expected to improve by 20%, and the time required to complete products is projected to be reduced by 35%.

The annual production capacity for excavators and wheel loaders is also expected to increase by 56%, from the previous 9,600 units to 15,000 units. In particular, HD Hyundai Construction Equipment plans to develop the Ulsan Campus, reborn as a smart factory, into a global production hub, or "Mother Plant," and to organically connect it with its major overseas production subsidiaries and customization centers in the United States and Europe. HD Hyundai Chairman Kwon Ohgap stated, "The newly established plant, reborn with a smart and safe production system, will become the world's top production base equipped with both advanced technology and environmental standards."

On the same day, HD Hyundai Construction Equipment also held a "Smart Factory First Unit Delivery Ceremony." A total of five units, including a new 40-ton excavator model first unveiled at the "2025 Seoul Mobility Show" in April, a 125-ton ultra-large excavator, and a 35-ton large wheel loader, were delivered to dealers in the United States, Europe, and China.

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