Hyundai to raise equipment production by 50%

Hyundai Construction Equipment (HCE) is to invest €150 million (US$170m) in its Ulsan manufacturing plant in South Korea, in order to increase its production capacity by 50% to meet the rising global demand for construction equipment.

Delivered over the next four years, the investment will enable Hyundai to produce more than 15,000 units a year, including crawler excavators, wheeled loaders, and other types of equipment.

The investment is the largest HCE has launched since it became a newly established corporation within the Hyundai Heavy Industries group, and will be used to restructure the assembly lines at the Ulsan plant, simplifying its production processes and strengthening its competitiveness.

It will see the manufacturer merge the production and assembly functions of its Factory 1 and Factory 2, into a single facility simplifying the flow of processes and increasing savings by maximising efficiency.

This will also reduce the working hours involved in machine production and cut logistics costs throughout the supply chain.

The move will also reflect HCE’s environmental, social, and governance factors, using eco-friendly sub-materials when conducting interior and exterior finish work.

Described as a way of “future-proofing production for next-generation construction equipment manufacturing”, the move aims to support Hyundai’s growing presence in the global construction equipment market, while providing a manufacturing base for a new generation of electric and hydrogen-powered equipment.

“Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top 5, the goal of the construction equipment division of the Hyundai Heavy Industries group,” said the company’s CEO Mr. Choi Cheol-gon.

“With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”

HCE is increasing its market share in every region of the business, by responding to current market trends in the global construction equipment market and by looking ahead to the customer requirements of tomorrow’s infrastructure and construction projects.

HCE announced in 2020 that it plans to bring to market a range of excavators powered by hydrogen fuel cells, produced in cooperation with Hyundai Motors, which has its largest automotive plant in Ulsan.

The company has already unveiled a range of hydrogen-powered industrial forklifts that are due to launch in 2023, as it continues to develop the low and zero-carbon emissions equipment that will be demanded by the customer of the future.

It is also planning to benefit from the recent US launch of the ‘Build Back Better World (B3W) initiative for developing countries.