HD Hyundai has announced a major restructuring of its construction equipment operations, with HD Hyundai Construction Equipment and HD Hyundai Infracore set to merge into a new entity named HD Construction Equipment, effective 1st January 2026.
The strategic merger, approved during separate board meetings held on 1st July, aims to bolster the company’s global competitiveness and technological readiness amid a challenging and fast-changing international marketplace. A shareholder vote is scheduled for 16th September, with regulatory approvals to follow.
At launch, HD Construction Equipment will have a combined revenue base of KRW 8 trillion (USD 6.15 billion) and will operate two flagship brands — HYUNDAI and DEVELON. The new structure will allow the business to leverage synergies between the two legacy companies while maintaining their distinct market presence.
It is likely that the Hyundai and Develon brands will maintain separate dealer networks. The merger is expected to solidify their market position and competitiveness, and suggests companies such as German Gulf and Al-Shirawi in the UAE will continue to represent the brands separately in their markets.
“This merger will drive sustainable growth for the Construction Equipment Division of HD Hyundai, helping us strengthen our position in the global market and serving as a significant milestone in advancing Korea’s construction equipment industry,” said Cho Young-cheul, President and CEO of HD Hyundai XiteSolution.
The company has outlined an ambitious roadmap to achieve KRW 14.8 trillion (USD 11 billion) in annual revenue by 2030, driven by a strategy focused on strengthening fundamentals, diversifying revenue streams, and securing future growth engines.
Key strategic objectives of the merger include:
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Greater agility in responding to market demands and global uncertainty
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Balanced growth across core construction equipment, engines, and aftermarket services
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Expansion of compact equipment to offer a full product line from mini to ultra-large machinery
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Investment in smart and electrified machinery, leveraging integrated R&D capabilities
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Growth of aftermarket business, including parts, maintenance, and service solutions
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Optimisation of production facilities by region to maximise efficiency and economies of scale
The merged company will benefit from unified decision-making and a more efficient organisational structure, supporting long-term goals such as product innovation and global expansion.
HD Construction Equipment will also pursue growth in high-potential segments such as engine manufacturing and aftermarket solutions. The company sees these areas as vital for reducing reliance on traditional machinery sales and creating recurring revenue models.
The share exchange ratio has also been confirmed, with shareholders of HD Hyundai Infracore receiving 0.1621707 common shares in HD Hyundai Construction Equipment for each of their existing shares.
By integrating two of South Korea’s most recognisable construction equipment businesses under one roof, HD Hyundai aims to establish a foundation for global leadership — and create a more agile, diversified, and innovation-driven player in the heavy machinery sector.
