Doosan Bobcat builds US$26 mln construction equipment plant in India

Doosan Bobcat Inc., a construction equipment unit of Doosan Group, said Thursday it has completed a $26 million construction equipment plant in India.

Doosan Bobcat purchased the idle plant from U.S. agricultural and construction equipment maker John Deere last year and upgraded the facility to start producing backhoe loaders in October, the company said in a statement.

"The company plans to produce backhoe loaders in the Chennai plant to become the No. 3 player in the Indian backhoe loader market within three years," it said.

Backhoe loaders account for about 80 percent of India's small construction equipment market as the world's second-most populous country is one of the world's fastest growing economies, the company said.

In the long term, Doosan Bobcat said it aims to export backhoe loaders to the Middle East, Africa and Southeast Asia in addition to local sales for Indian corporate customers.

Doosan Bobcat is 51 percent owned by Doosan Infracore Co., a leading construction heavy equipment maker in South Korea.

In 2007, Doosan Infracore acquired Bobcat and other construction equipment units from North Carolina-based Ingersoll Rand PLC for $4.9 billion.

Doosan Bobcat now has four manufacturing plants in the United States, the Czech Republic, China and India. It builds compact construction equipment, such as excavators and loaders. Seventy percent of them are sold in North American markets, with 20 percent and 10 percent sold in the European and Asian markets, respectively.

In the January-June period, Doosan Bobcat posted a net profit of 164 billion won ($135 million), up 18 percent from 139 billion won a year earlier. Operating profit jumped 16 percent on-year to 270 billion won on sales of 2.25 trillion won, a 18 percent on-year gain. (Yonhap)