In a strategic move to bolster their presence in the U.S. market, South Korea’s leading construction machinery manufacturers, HD Hyundai Infracore Co. and Doosan Bobcat Inc., have agreed to cross-sell their products under their respective brands. The agreement was formalized with a memorandum of understanding signed by HD Hyundai Infracore CEO Cho Young-cheul and Doosan Bobcat CEO and Vice Chairman Scott Park on Thursday.
HD Hyundai Infracore, a subsidiary of the Korean conglomerate HD Hyundai Co., is renowned for its mid-size construction equipment. Meanwhile, Doosan Bobcat, part of Doosan Group, excels in the small equipment segment. This cross-selling partnership aims to expand both companies’ product offerings and boost their market share in North America.
“Both of us have maintained close business ties in recent years. We expect to grow our market share through this cooperation,” stated Cho Young-cheul of HD Hyundai Infracore.
Scott Park of Doosan Bobcat echoed this sentiment, expressing excitement about the strengthened partnership. “We expect to provide more diverse options and opportunities to our customers and dealers by expanding our product lineup,” Park said.
This collaboration comes at a time when Korean construction machinery manufacturers are targeting emerging markets such as India, Brazil, Mexico, and Saudi Arabia, amid a slowdown in advanced markets after a robust sales year in 2023.
HD Hyundai Infracore, ranked 19th globally in construction equipment manufacturing, plans to launch a sales affiliate in Mexico this September, positioning the country as its hub for the Latin American market. Doosan Bobcat, the 11th-largest in the world, is also expanding its footprint in Mexico with a new production plant in Monterrey, the capital of Nuevo León.
In December of last year, HD Hyundai Infracore and HD Hyundai Construction Equipment Co. announced the integration of their equipment manufacturing platforms to reduce costs and enhance business synergy. This move follows Hyundai’s 2021 acquisition of a controlling stake in Infracore from Doosan Group, subsequently rebranding the company as Hyundai Doosan Infracore and later as HD Hyundai Infracore with a new equipment brand, Develon.
Through these strategic initiatives and collaborations, both HD Hyundai Infracore and Doosan Bobcat are poised to strengthen their market positions and deliver a wider range of products to meet diverse customer needs in North America.
