Hyundai and CNH announce strategic alliance
Companies enter into exclusive 10-year-plus agreement for compact excavator business
HYUNDAI Heavy Industries (HHI) have entered into an exclusive strategic alliance agreement with CNH Industrial for the compact excavator business.
Under the 10-year agreement with renewal option, CNH Industrial will market four mini-excavator models that will be supplied as complete products by HHI through OEM production, plus 10 other mini-excavator models in the form of complete knock-down kits through license production.
As a result of the agreement, HHI say they expect sales of their compact excavators to double over the next 10 years. Mini-excavators to be rolled out under the agreement will hit the global market from early 2017.
Moreover, the two companies have taken the co-operation a step further by agreeing to jointly develop new models and upgrade existing models.
S.G. Rhee, chief operations officer of HHI’s Construction Equipment Division, said: ‘We have noticed that the global demand for the mini-excavator market has been more stable than the bigger-sized construction equipment, and we also expect the demand to continue to increase for years to come.
‘In view of this trend, we have come to the conclusion that the alliance with CNH Industrial, who have multiple brands including Case Construction Equipment and New Holland Construction, will be a win-win solution for both companies.
‘Moreover, we believe that the partnership will lay a solid foundation for the compact and mini-sized construction machine business of HHI’s Construction Equipment Division.’
J.C. Jung, chief executive officer of HHI Europe, added: ‘This strategic alliance will result in an expansion of our Hyundai compact excavator product range; new models will be developed and existing models will be upgraded with additional options.’