HD Hyundai Unites Brands to Build a Global Construction Giant
In a strategic power play set to redefine the global construction equipment industry, HD Hyundai has announced the merger of two of its key subsidiaries: HD Hyundai Construction Equipment and HD Hyundai Infracore. The newly unified entity, to be named HD Construction Equipment, will officially launch on 1st January 2026, operating under two distinctive brands: HYUNDAI and DEVELON.
This move marks a critical milestone in HD Hyundai’s roadmap towards becoming a dominant force in the global machinery landscape, with an ambitious target of reaching KRW 14.8 trillion (USD 11 billion) in revenue by 2030. For context, the combined revenue of the two companies currently stands at around KRW 8 trillion (USD 6.15 billion).
One company, two brands
Rather than folding one identity into another, HD Construction Equipment will embrace the strengths of both HYUNDAI and DEVELON. This dual-brand strategy allows the new entity to maintain market loyalty while reaching a broader spectrum of global customers.
The Hyundai and Develon brands will continue to maintain separate dealer networks, fostering a competitive yet synergistic environment. Each brand will retain its distinct product identity, design ethos, and user experience, ensuring customer choice without compromise. They’ll also continue delivering independent aftercare and support technologies, which will only strengthen the post-sales service experience.
The new structure isn’t just about branding. It’s a calculated effort to:
- Respond faster to shifting market dynamics
- Accelerate innovation
- Deliver competitive pricing
- Create a globally agile decision-making structure
By operating with a centralised management system, HD Construction Equipment hopes to reduce inefficiencies, slash costs, and react swiftly to global supply chain challenges.
Scaling up and digging deeper
One of the biggest opportunities unlocked by the merger lies in achieving economies of scale. By streamlining production and consolidating resources, HD Construction Equipment can optimise product lines, enhance regional production specialisation, and expand its portfolio across the full spectrum of machinery sizes – from nimble compact models to heavy-duty, ultra-large equipment.
Since HD Hyundai Infracore’s incorporation into the HD Hyundai Group in 2021, the two companies have already been chasing synergies. This collaboration has yielded tangible results, including lower purchasing costs and reduced logistical expenses. The merger takes those gains a step further, enabling the creation of specialised product lines and targeted service models, tuned to the unique needs of regional markets.
New engines for growth
The machinery market isn’t getting any easier – demand is volatile, margins are tight, and tech innovation is relentless. So HD Construction Equipment isn’t putting all its eggs in one mechanical basket.
To diversify its revenue, the company is banking on three high-potential areas:
- Engine Business Expansion: With electrification on the rise, HD sees huge promise in its engine division. The goal? To supply efficient, low-emission powertrains for a greener future.
- Aftermarket Services: Parts replacement and maintenance don’t just keep machines running – they keep margins healthy. The company is ramping up its service networks and digital support platforms to boost profitability.
- Smart and Electrified Equipment: Leveraging its integrated R&D ecosystem, HD Construction Equipment will accelerate development of next-generation machinery. This includes autonomous capabilities, AI diagnostics, telematics, and fully electrified construction vehicles.
Building future resilience
While the company eyes new markets and technologies, it hasn’t forgotten its roots. HD Construction Equipment plans to strengthen its core competencies by enhancing its operational backbone and investing in regional specialisation.
The production strategy will see specialised facilities in different geographies, enabling the firm to tailor products to local market needs while reducing shipping time and cost. Meanwhile, its R&D centres will operate in sync, pooling talent and insights from across the globe.
This tighter integration aims to future-proof the business and ensure long-term competitiveness, particularly in fast-changing markets such as Southeast Asia, Africa, and Latin America.
The merger mechanics
Behind the strategic headlines lies a fairly straightforward merger mechanism. On 1st July, the boards of both HD Hyundai Infracore and HD Hyundai Construction Equipment approved the consolidation. Now, all eyes turn to the extraordinary shareholders’ meeting scheduled for 16th September, followed by necessary regulatory approvals.
The merger will be executed through a share swap. Shareholders of HD Hyundai Infracore will receive 0.1621707 common shares of HD Hyundai Construction Equipment for every share they own. The unified company will then be fully equipped to pursue its bold growth ambitions.
Leadership perspective
The head of the new division, Cho Young-cheul, who also serves as President and CEO of HD Hyundai XiteSolution, didn’t mince words when speaking about the merger: “This merger will drive sustainable growth for the Construction Equipment Division of HD Hyundai, helping us strengthen our position in the global market and serving as a significant milestone in advancing Korea’s construction equipment industry.”
His comments underscore what many in the industry already suspect: HD Hyundai isn’t just looking to stay afloat in a competitive world – it’s gearing up to lead.
Turning strategy into success
No doubt, the real test lies ahead. Consolidations often look good on paper, but execution is what separates vision from victory. That said, HD Hyundai is not entering this uncharted territory blindly. With strong global brand recognition, a diversified portfolio, and a clear strategic plan, it seems well-equipped to deliver on its promises.
Furthermore, the merger aligns neatly with global trends in sustainability, digital transformation, and infrastructure investment. The global construction equipment market, projected to reach USD 222 billion by 2030, offers fertile ground for innovation, particularly in emerging markets and eco-conscious sectors.
A rising force in global construction
With the HD Construction Equipment merger, HD Hyundai has just put a massive stake in the ground. It’s not only doubling down on its strengths but also future-proofing its business by leaning into digitalisation, electrification, and aftermarket resilience.
If all goes to plan, this move could set a new benchmark for what a modern, sustainable, and globally responsive construction equipment company should look like.
As the dust settles and the machines roll off the line under the banners of HYUNDAI and DEVELON, one thing is clear: the race to dominate the global construction equipment sector just got a whole lot more interesting.
