Hyundai Construction Equipment to invest $170 million, expanding production capacity by 50 percent
Hyundai Construction Equipment Americas plans to invest US$170 million in its Ulsan factory to increase production capacity by 50 percent and simplify its manufacturing processes for increased efficiency.
With this investment, the company will increase its capacity at Ulsan to 15,000 units of construction equipment. This investment, to be spread across four years, is the largest since the company's launch as a newly established corporation in 2017.
"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."
Hyundai Construction Equipment's investment is focused on restructuring production lines to maximize and expand production capacity for excavators, wheel loaders and other types of construction equipment. Specifically, the company will merge production and assembly functions from one factory into two, simplifying workflow processes, increasing efficiency and reducing logistics costs.
Choi Cheol-gun, CEO of Hyundai Construction Equipment, recently declared the necessity of improving the efficiency of the Ulsan facility and set out to execute a plan to create both synergy and friendly competition with Hyundai Doosan Infracore.
New production facilities to reflect environmental, social and governance factors
Additionally, Hyundai Construction Equipment plans to reflect environmental, social and governance factors through measures such as the use of eco-friendly sub-materials in interior and exterior finish work and configuring production lines in a way that further improves worker safety.
This expansion is in unison with Hyundai Construction Equipment's technology innovation centre completed last November. With 16 laboratories employing 100 researchers, the centre will execute research and development projects focused on eco-friendly technologies, energy efficiency and noise reduction.