HD Hyundai to merge 2 construction equipment units into Korea's largest machinery firm
HD Hyundai Infracore Chief Executive Officer (CEO) Oh Seung-hyun presides over an extraordinary general meeting of shareholders, Tuesday. Courtesy of HD Hyundai Infracore
HD Hyundai's two construction equipment affiliates — HD Hyundai Construction Equipment and HD Hyundai Infracore — plan to merge to form South Korea's largest construction machinery company next year, according to the companies Tuesday.
HD Hyundai Infracore said its shareholders approved the merger plan at an extraordinary general meeting held earlier in the day, while HD Hyundai Construction Equipment was also set to approve the consolidation move at its own shareholders' meeting.
The new entity, to be named HD Construction Equipment, is poised to be launched on Jan. 1 after completing follow-up steps.
The two firms first announced their merger plan in July, saying it was necessary to secure future technologies and cost competitiveness through the consolidation amid global economic uncertainty and intensifying competition.
The merged company aims to reach 14.8 trillion won ($10.7 billion) in annual sales by 2030 and strengthen its position in the global market.