HD Hyundai Construction Equipment has invested €131 million in the development of an advanced, world-leading smart factory at its Ulsan Campus in South Korea. The 4,710m² campus is a single, cohesive facility with automated product flow and advanced quality control, and has seen the modernised factory increase production capacity by 56%.
The company has been working on the Advancement Project since 2023, expanding and reorganising production lines, constructing a new quality assurance centre and a new receiving building, developing an updated office structure and transforming the plant into a smart facility. Production and logistics have been streamlined under an integrated factory system, while a real-time product tracking system has been introduced to optimise workflow and overall efficiency.
Welding robots have been installed in the fabrication facility, featuring vision sensors on the body welding production line, which enhances productivity and consistency in quality. Unmanned transport vehicles (AGVs) and AI-based quality inspection systems in the assembly line further increase automation. This has resulted in a labour productivity improvement of more than 20%, while the time required to complete a machine has decreased by up to 35%.
The Ulsan facility, which manufactures medium to large excavators and wheel loaders, will see its production capacity increase by 56%, from 9,600 units per year to up to 15,000 machines annually, enabling the company to meet the growing demands of customers worldwide. The smart facility will act as a ‘Mother Plant’ with direct connections to HD Hyundai’s major overseas production plants and customisation centres in Europe and the United States.
HD Hyundai Chairman Kwon Oh-gap said: “The new factory, transformed with a smart and safe production system, aims to become the world’s leading production hub, integrating advanced technology and environmental sustainability.”
The site has already delivered its first machines, including a 40-tonne Next Generation crawler excavator that was launched to the market at the recent Bauma exhibition in Munich. The site has also provided a 125-tonne class excavator and 35-tonne large wheel loaders to dealers worldwide.
“The Ulsan Campus has been transformed into a smart factory, significantly improving its quality competitiveness,” said CEO Choi Cheol-gon. “We are dedicated to providing top-tier products that will lead the construction machinery sector, including our Next Generation models.”
