Hyundai Construction Equipment Boosts Production by 50%

 

Hyundai Wheel Loaders

Hyundai Construction Equipment (HCE) has announced it plans to expand production of construction equipment over the next four years to allow delivery of 15,000 units per year. That’s a 50% increase over current production capacity.

The company will invest $170 million in its primary production facility in Ulsan, South Korea. This is the largest investment the company has made since 2017, when it was first established. The overall goal is to maximize production of excavators, wheel loaders and other construction equipment.

Restructuring and streamlining

Hyundai Construction Equipment plans to restructure how equipment is manufactured by merging production and assembly functions. They hope to simplify workflow processes, increase efficiencies and reduce logistics costs.

As the company works to expand the Ulsan production facility at Ulsan, there will be renewed focus on incorporating Environmental, Social and Governance (ESG) elements wherever possible. For example, sub-materials used for interior and exterior finish work will be eco-friendly and new production line design will emphasize worker safety.

The company previously followed ESG guidelines when building its new technology innovation center. Completed in November, the center includes 16 laboratories where 100 researchers study new ways to use eco-friendly technologies, improve energy efficiency and reduce noise.

Why such a major expansion?

Hyundai Wheel LoadersHyundai Construction Equipment hopes to cash in on global construction industry growth by creating “both synergy and friendly competition” between the Ulsan plant and Hyundai Doosan Infracore, which is now owned by Hyundai Heavy Industries. Aside from the internal competition for quality and sales, Hyundai Heavy Industries hopes to boost their construction equipment division into the top five worldwide. They see expanded production in Ulsan as a first step toward that goal.

But there’s more, and it’s of special interest to American construction firms.

Stan Park, President, Hyundai Construction Equipment Americas, says the Ulsan expansion will ensure Hyundai customers are well-equipped to take on more work. “For North America,” he explains, “this positions us to better meet demand arising from planned investments in infrastructure expansion.”

He’s referring to recently passed federal legislation known as the Infrastructure Investment and Jobs Act. This $1.2 trillion package provides an unprecedented level of funding for badly long-needed projects across all infrastructure sectors.

Funds will be allocated to improve supply chain efficiency, improve roads and bridges so they are not only more reliable but safer, maintain and expand urban transit systems, increase security of local drinking water systems. Elements of these funding package also aim to make the nation’s infrastructure more resilient in light of climate change.