HD Hyundai Infracore plans to expand its manufacturing capabilities with a 141.2 billion won ($108 million) investment across two South Korean plants, targeting growth in ultra-large power engines and battery pack production.
The construction equipment maker will allocate 24.4 billion won to its Incheon facility, with the remaining funds directed to the Gunsan plant. The four-year investment program, running through 2028, represents about 7.8% of the company’s equity capital.
The expansion marks HD Hyundai’s latest push to capture a larger share of the industrial power solutions market. The investment comes as global demand for heavy-duty engines continues to rise, particularly in marine and industrial applications.
The HD Hyundai unit faces increasing competition in the power solutions sector, where rivals are also ramping up their manufacturing capabilities. The success of this expansion will largely depend on the company’s ability to secure new customers and maintain technological advantages in an increasingly crowded market.
While HD Hyundai Infracore sees the investment as key to expanding its engine business into new segments, industry analysts note that the extended timeline of the project could expose it to changing market conditions and evolving environmental regulations.
