Doosan Infracore's Machine Tool Division Goes Global

Doosan Infracore, a Doosan subsidiary specializing in construction equipments and machines, will be speeding up its agenda to go global. The company's latest plans include upgrades to the Yantai plant in China to 5,000 units in annual output, and construction of new production lines in Brazil, Turkey, and Eastern Europe.

"We will raise our market share in China to 5%, up from the current 2.2%, within the next five years, which is why we are making new upgrades to the local production unit," said a high ranking official of the machine tool unit. "We are also mulling over the option of building new plants in emerging markets like Brazil, Turkey, and Eastern Europe." Machine tools are called "mother machines," as they are equipments used to produce other machines.

Doosan's newest improvements in China signal the company's intent on securing the rapidly expanding Chinese market. China took a mere 20% share in the global machine tool market as recent as 2008, but the industry has been booming and the world's largest powerhouse is projected to take a 46% share of global business in the sector this year. This is why Doosan Infracore is keen on more than doubling its output from 2,000 to 5,000 units, say industry experts.

Doosan is also contemplating new production bases abroad, most likely in Brazil, Turkey, or Eastern Europe. Brazil is a particularly likely location, as it holds a core spot in the Latin American market and the company has already scored a decent performance of 2.5% market share in the first half this year.

The growth of the machine tool industry is fueling Doosan Infracore's overall performance. According to market experts, Doosan's machine division has earned 280.1 billion won ($264.0 million) in sales revenue in the first quarter (Q1) and is expected to bring in more than 300 billion won in Q2.

[Written by Seung-hwan Chung - Samji Chung / edited by Soyoung Chung]