HD Construction Equipment Targets $5.9B Revenue in First Year Post-Merger

The company disclosed these financial objectives during a briefing held for domestic and overseas institutional investors on Wednesday in Seoul. According to a report by Pulse, the English service of Maeil Business News Korea, the entity intends to leverage its recent integration to drive global growth and profitability.

During the investor meeting, the company outlined its strategy to capitalize on the synergies created by the merger of its machinery divisions. "We will achieve results that outperform market growth through the rapid execution of our mid- to long-term strategy and the synergies created by integration," the report quoted Moon Jae-young, president of HD Construction Equipment. "We will also actively pursue facility investment and technology development to secure the fundamental competitiveness of our construction machinery business."

The company recently reported a strong start to the year with significant order acquisitions across the African continent. HD Construction Equipment secured a major contract for equipment to be deployed at a gold-mining site in Ethiopia. This specific order consisted of 70 units of 36-ton Develon excavators and 50 units of 34-ton Hyundai excavators.

The firm noted that the deployment of both brands at a single site reflects its new integrated sales strategy. The company highlighted that its 30-ton class excavators maintained high demand in the region due to their durability in harsh resource-development environments.

Further expansion into emerging markets included large-scale orders from Southeast Asia and the Commonwealth of Independent States (CIS). In Vietnam, the company obtained contracts for a total of 71 units to support government and national projects.

This included 20 units of 20-ton class wheel excavators designated for the Vietnamese government's emergency disaster preparedness initiatives. Additionally, the order featured 20 to 30-ton class crawler excavators intended for national infrastructure expansion projects across the country.

In Central Asia, HD Construction Equipment signed a deal to supply 41 units of heavy machinery to Kyrgyzstan. The fleet for this project included 52-ton large excavators and 38-ton mid-to-large excavators. These machines were scheduled for use in the development of transportation networks and real estate construction projects.

The company stated that it planned to strengthen its customer support system by leveraging the sales synergies of its highly recognized Hyundai and Develon brands in Africa and other key regions. It also aimed to establish a cooperative framework to respond to expanding equipment demand in key countries, further solidifying its local presence.

- ANI