Hyundai and Doosan to compete under Genuine tie-up
Intermediary holding company established to support both companies and maximize synergies
FOLLOWING the acquisition in August of Doosan Infracore by Hyundai Heavy Industries Group, Hyundai Genuine has now been established as an intermediary holding company.
Doosan Infracore, who have been renamed Hyundai-Doosan Infracore, and Hyundai Construction Equipment will continue to operate under their own management systems and compete as sister companies within the global equipment market.
Hyundai Genuine, who will provide support to both businesses, whilst maximizing the available synergies between the two, are aiming to rank among the global top five construction equipment manufacturers and capture 5% of global markets by 2025.
This will initially be achieved through the development of integrated excavator and wheel loader platforms, by 2025, that will be utilized by both companies. The two manufacturing businesses will also combine their research and development efforts, to increase technological competitiveness, whilst sales will be strengthened through mutually complementary ranges of machinery.
Further ahead, new investment will be increased, to secure next-generation business activities. Plans include the development of hydrogen engines for construction equipment, further mergers and acquisitions, investment in start-up businesses, and closer industry-university co-operation, to develop market-leading expertise in automation and electrification.
Hyundai Heavy Industries group chairperson Kwon Oh-gap has vowed to develop the construction equipment business as a core sector of the group, a decision which, he says, will be backed by further investment at group level.