HD Hyundai Construction Equipment and HD Hyundai Infracore are merging to create HD Construction Equipment. The unified business, targeting US$11 billion in revenue by 2030, will continue to operate through two distinct brands – Hyundai and Develon. The merger will take effect from January 1, 2026, following shareholder agreement and regulatory review.
“This merger will drive sustainable growth for the construction equipment division of HD Hyundai, helping us strengthen our position in the global market,” said Cho Young-cheul, President and CEO of HD Hyundai XiteSolution, the overarching organisation overseeing the construction business.
The merger of the two companies will boost their agility in meeting market demands, as they navigate a dynamic and competitive global environment. It will strengthen future technological capabilities and ensure increased cost competitiveness. HD Construction Equipment will optimise its product lines and production facilities by region, expanding its compact equipment business and establishing a full line range, from compact to ultra-large construction machinery.
The core business area will be construction equipment, supplemented by growth in engines and aftermarket services. Positioning itself as a global industry leader, the company will continue to develop electrified and smart construction equipment, delivering a comprehensive range of site solutions.
Since HD Hyundai Infracore was incorporated into the HD Hyundai Group in 2021, the two companies have actively pursued synergies, resulting in additional profit generation through a reduction in purchasing costs and logistical expenses. The merger will enable continued expansion and optimisation of the product line-up, the development of specialised products and services, along with faster decision-making in response to the changing needs of customers worldwide.
The Hyundai and Develon brands will continue to develop separate dealer networks, operating under a healthy competitive structure. Both companies will retain their own distinct product identity, designs, and user experience features for the equipment, while delivering independent aftercare and support technologies that will further benefit customers.
