HD Hyundai Infracore is targeting the Middle East and Africa (MEA) market with its new brand, DEVELON, formerly Doosan Construction Equipment. The company recorded revenue of $330mn last year in the MEA region, a sharp increase of 116% compared to $150mn in 2020.
The number of machines sold has also exceeded 2400 units, marking a 60% increase in sales compared to 2020, mainly due to the company’s focus on securing large-scale customers with new advanced technology-equipped machine launches and customised services.
The construction equipment market volume in MEA increased from 16,720 units in 2020 to 32,786 units in 2022, which shows that the market is experiencing a steep growth with a 96% increase over the past three years.
According to a global market research agency, Research and Markets, the MEA construction equipment market is growing annually by 4% and is expected to grow to $6.4bn in 2028 from its current volume of $4.26bn.
HD Hyundai Infracore has been paying great attention to strengthening its presence in the Middle East through its office in Dubai and is contesting for first place in Saudi Arabia whilst pulling ahead of other global competitors after winning business on large-scale construction projects in UAE. This year, it aims to sell 1200 units in UAE, an increase from 1000 units sold last year.
With Saudi Arabia planning the world’s largest project, Neom City, which is expected to exceed $500 billion in volume, HD Hyundai Infracore anticipates that this will result in more construction equipment demand shortly.
HD Hyundai Infracore has recently established a new African office in Accra, Ghana, to expand its network and secure more customers in Western and Central Africa, where the market is growing.
As a result, HD Hyundai Infracore has signed supply contracts for 29 new machines in the Republic of Angola, including 20 excavators and nine wheeled loaders. The machines will be supplied to one of the largest construction companies in Angola and used for building hydroelectric power dams. This is the largest contract for the company since starting business in Angola and takes up around 8% of the country’s total market when considering its average market volume is around 370 units per year.
With the launch of its new brand, DEVELON, HD Hyundai Infracore also hosted its ‘2023 MEA Dealer Conference’ in Cairo, Egypt, to discuss sales strategies. The dealer conference is the first regional meeting since launching DEVELON, where over ninety key stakeholders, including HD Hyundai Infracore president, Seunghyun Oh, and twenty-six MEA dealers attended.
President Oh said: “We have seen unprecedented results in the Middle East and Africa market in the past five years,” and added, “Along with the new brand launch, we will work on developing different next-generation technologies and strengthen the current lineup to maximise our sales capacity to reach our goal of becoming a Global Top 5 player by 2025.”
