Hyundai Heavy Industries, which is one of the world’s top industrial giants, recently revealed the acquisition of Doosan Infracore, the number one construction machinery manufacturer in South Korea.
Strategic acquisition
This new acquisition aims to support the development of cutting-edge technologies by joining forces and creating a common R&D unit.
Additionally, Hyundai CE will be able to strengthen its position in the global market by utilizing the Doosan knowledge in improving the product design.
With such acquisition, it is expected to see similar parts be fitted in both Doosan and Hyundai equipment and a possible common production line, leading to reducing the total production cost and strengthening their position as a competitive alternative for top-tier Japanese and US manufacturers.
Hyundai Heavy Industries will be controlling both Hyundai Construction Equipment and Doosan Infracore through its newly created subsidiary Hyundai Genuine Co.
Doosan and Hyundai CE will remain a competitor under the same umbrella.