HD Construction Equipment targets $5.9bn in revenue in its first year

(HD Construction Equipment)

HD Construction Equipment Co., the integrated construction machinery unit of South Korea’s HD Hyundai Co., has set its first-year goals at 8.72 trillion won ($5.9 billion) in revenue and 439.6 billion won in operating profit.

HD Construction Equipment held a briefing for domestic and overseas institutional investors on Wednesday in Seoul and announced its earnings outlook for this year.

“We will achieve results that outperform market growth through the rapid execution of our mid- to long-term strategy and the synergies created by integration,” said Moon Jae-young, president of HD Construction Equipment. “We will also actively pursue facility investment and technology development to secure the fundamental competitiveness of our construction machinery business.”

HD Construction Machinery signaled a smooth start this year by winning orders in Africa.

The orders include 70 units of 36-ton Develon excavators and 50 units of 34-ton Hyundai excavator, which will be deployed at a gold-mining site in Ethiopia.

The company plans to strengthen its customer support system by leveraging the sales synergies of its highly recognized Hyundai and Develon brands in Africa.

It will also establish a cooperative framework to respond to expanding equipment demand in key countries, further solidifying its local presence.

HD Construction Equipment also secured large-scale orders in Southeast Asia and the Commonwealth of Independent States (CIS).

It recently secured orders for a total of 71 units from Vietnam, including 20 units of 20-ton class wheel excavators for the Vietnamese government’s emergency disaster preparedness, and 20 to 30-ton class crawler excavators to be deployed in the country’s national infrastructure expansion projects.

The company also signed a deal to supply 41 units of equipment to Kyrgyzstan in Central Asia, including 52-ton large excavators and 38-ton mid-to-large excavators, for use in transportation network and real estate construction.