Hyundai Construction Equipment is investing $170 million into its Ulsan, South Korea plant over the next four years. The investment, which is the largest since the company’s launch as a newly established corporation in 2017, will allow the manufacturer to increase production capacity by 50% and simplify its manufacturing processes. Hyundai says the upgrades will bump plant capacity up to 15,000 units.
“This increase in manufacturing capability means that Hyundai will be able to address global growth in construction activity,” said Stan Park, president, Hyundai Construction Equipment Americas. “For North America, this positions us to better meet demand arising from planned investments in infrastructure expansion.”
The bulk of the investment is focused on restructuring production lines to maximize and expand production capacity for excavators, wheel loaders and other construction equipment. Specifically, Hyundai will merge production and assembly functions from one factory into two, simplifying workflow processes, increasing efficiency and reducing logistics costs. Additionally, eco-friendly sub-materials will be used in interior and exterior finish work and production lines will be configured to further improve worker safety.
“Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top five,” says Choi Cheol-gun, CEO of HCE. “With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”
Some friendly competition will even be directed toward Doosan, the company says. Hyundai Doosan Infracore became a subsidiary of the new Hyundai Genuine Group in August 2021. Hyundai Construction Equipment is also a subsidiary of the holding company, with both companies operating independently.