HD Hyundai XiteSolution has announced the merger of its two construction subsidiaries, HD Hyundai Construction Equipment and HD Hyundai Infracore, as part of a strategic initiative to reinforce competitiveness amid evolving industry dynamics. The consolidated entity, provisionally named HD Construction Equipment, is expected to launch on 1 January, following necessary regulatory procedures.
The boards of directors of both companies have formally approved the merger in separate meetings, with a temporary shareholders’ meeting scheduled for 16 September and a subsequent review by authorities. HD Hyundai Construction Equipment will serve as the surviving corporation in the transaction.
This move reflects HD Hyundai XiteSolution’s strategic response to intensifying global market competition and persistent economic uncertainty. The company emphasised the importance of the merger in securing technological leadership and cost efficiency, essential for long-term sustainability in the construction equipment sector.
Currently, the combined annual revenue of the two affiliates stands at approximately ₩8 trillion. The newly merged entity aims to achieve ₩14.8 trillion in annual revenue by 2030. HD Construction Equipment will manage and grow the two flagship brands, Hyundai and Develon, pursuing balanced expansion across core segments including construction machinery manufacturing, engine systems, and aftermarket services.
The company will implement a unified decision-making framework to optimise its regional product portfolio and production capabilities. It also plans to expand its presence in the compact equipment segment to offer a full spectrum of construction solutions, further strengthening its market position.
Future growth will be underpinned by investments in automation, smart machinery, and integrated solutions enabled through consolidated research and development. This will support HD Construction Equipment’s ambition to lead innovation in construction technologies.
As part of the merger agreement, shareholders of HD Hyundai Infracore will receive newly issued shares of HD Hyundai Construction Equipment. Under the approved merger ratio, each common share of HD Hyundai Infracore will be exchanged for 0.16 shares of the surviving company.
“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 entity in advancing South Korea’s construction equipment industry,” said Cho Young-cheul, Chief Executive Officer of HD Hyundai XiteSolution.
-The Korea Herald
