Daedong Corp. secured a 361.2 billion won ($277 million) contract to supply tractors to Doosan Bobcat’s US subsidiary, extending a partnership that began in 2018. The four-year agreement represents about a quarter of Daedong’s annual sales.
The Korean agricultural machinery maker will provide small and medium-sized tractors ranging from 20 to 70 horsepower, along with powertrains, from 2025 through 2028. The deal was signed at Doosan Bobcat North America’s headquarters on December 6.
This contract follows previous agreements between the companies, including a 303.6 billion won tractor supply deal in 2019 and a 70 billion won engine contract in 2021. Under the 2019 agreement, which expires this year, Daedong delivered approximately 300 billion won worth of tractors.
The company, leveraging its 77-year history in agricultural machinery, has developed expertise in key components through vertical integration and smart factory capabilities. A company executive noted that the deal validates Daedong’s product quality and performance standards.
The contract adds to Daedong Group’s growing order book, which includes a 1.42 trillion won vehicle electrification parts deal secured by its Daedong Gear unit earlier this year. The group’s total orders for 2024 now approach 1.8 trillion won.
