On July 1st, HD Hyundai announced a major decision to merge its two main construction machinery companies, HD Hyundai Construction Equipment and HD Hyundai Infracore, to establish a new company, tentatively named HD Construction Equipment.
According to the "Yellow Table 2025 Global Top 50 Construction Machinery Manufacturers" released by KHL, HD Hyundai Infracore, operating the DEVELON brand, ranks 21st globally with sales of $3 billion, while HD Hyundai Construction Equipment, operating the HYUNDAI brand, ranks 25th with sales of $2.5 billion. After the merger, the new company HD Construction Equipment's revenue will reach 8 trillion Korean won (approximately 6.15 billion US dollars), and its overall strength is expected to significantly increase.
It is worth noting that HD Hyundai Infracore, formerly known as "Hyundai Doosan Infracore", is involved in this merger. The company officially changed its name to "HD Hyundai Infracore" in March 2023.
The merger plan has been approved by the board of directors of both companies at separate meetings held on July 1st. According to the arrangement, HD Hyundai Construction Equipment will serve as the surviving company and will officially rename itself as HD Construction Equipment on January 1, 2026, after completing the resolution of the extraordinary shareholders' meeting scheduled for September 16 and necessary regulatory approval procedures.
The new company will operate two independent brands, HYUNDAI and DEVELON, as a unified entity. Its core business will continue to focus on engineering machinery manufacturing, and strive to expand its engine business and after-sales service market (aftermarket) centered on component replacement and maintenance. Based on the integrated research and development capabilities, the company will be committed to developing electrified, intelligent construction machinery, and comprehensive overall solutions to ensure future growth momentum. Through balanced development of various business segments, HD Construction Equipment has established a clear growth goal: to achieve a revenue of 14.8 trillion Korean won (approximately 11 billion US dollars) by 2030, ranking among the global industry leaders.
This merger will be conducted through a share swap: each ordinary share of HD Hyundai Infracore will be exchanged for 0.1621707 ordinary shares of the surviving company HD Hyundai Construction Equipment.
Cho Young Cheung, President and CEO of HD Hyundai XiteSolution, said, "This merger will drive the sustainable growth of HD Hyundai's Construction Machinery Division, help us consolidate our position in the global market, and become a major milestone in promoting the development of the Korean construction machinery industry
