HD Hyundai merge construction entities for global expansion
Unified business targeting US$11billion revenue by 2030 through its Hyundai and Develon brands
HD Hyundai Construction Equipment and HD Hyundai Infracore are to merge to create HD Construction Equipment. The unified business, which is targeting US$11billion revenue by 2030, will continue to operate through two distinct brands – Hyundai and Develon.
The merger, which will take effect from 1 January 2026, following shareholder agreement and regulatory review, will involve an exchange of shares: for each common share of HD Hyundai Infracore, shareholders will receive a designated amount of common shares in HD Hyundai Construction Equipment.
‘This merger will drive sustainable growth for the construction equipment division of HD Hyundai, helping us strengthen our position in the global market,’ said Cho Young-cheul, president and chief executive officer of HD Hyundai XiteSolution, the overarching organization overseeing the construction business.
The merger of the two companies will boost their agility in meeting market demands, as they navigate a dynamic and competitive global environment. It will strengthen future technological capabilities and ensure increased cost competitiveness. HD Construction Equipment will optimize their product lines and production facilities by region, expanding their compact equipment business and establishing a full-line range, from compact to ultra-large construction machinery.
The core business area will be construction equipment, supplemented by growth in engines and aftermarket services. Positioning itself as a global industry leader, the company will continue to develop electrified and smart construction equipment, delivering a comprehensive range of site solutions.
Since HD Hyundai Infracore were incorporated into the HD Hyundai Group in 2021, the two companies have actively pursued synergies, resulting in additional profit generation through a reduction in purchasing costs and logistical expenses. The merger will enable continued expansion and optimization of the product line-up, the development of specialized products and services, along with faster decision-making in response to the changing needs of customers worldwide.
The Hyundai and Develon brands will continue to develop separate dealer networks, operating under a healthy competitive structure. Both companies will retain their own distinct product identity, designs, and user experience features for the equipment, while delivering independent aftercare and support technologies that will further benefit customers.
