Hyundai Construction Equipment Wins Order for 263 Excavators in Brazil Worth Approximately 28.8 Billion KRW

A 22-ton excavator delivered by Hyundai Construction Equipment to Armak in July. (Photo by Hyundai Construction Equipment)

[Asia Economy Reporter Jeong Hyunjin] Hyundai Construction Equipment, a subsidiary of Hyundai Heavy Industries Group, announced on the 2nd that it has secured an order for 263 excavators worth 25 million USD (approximately 28.835 billion KRW) in Brazil.

Hyundai Construction Equipment recently signed a sales contract with Armak, the largest construction equipment rental company in Brazil, for a total of 263 units, including 25 units of 22-ton long reach (LR) excavators, 190 general excavators, and 48 units of 14-ton excavators. The excavators ordered this time are scheduled to be delivered sequentially to customers by June next year.

Last year, Hyundai Construction Equipment also received an order for 180 units of 22-ton excavators from Armak, delivered a total of 90 units by July, and plans to complete the supply of the remaining units within this year.

As the Brazilian government is actively investing in social overhead capital (SOC) to revive domestic demand, the local excavator market continues to expand. According to the Brazilian Construction Equipment Industry Association (ABIMAQ), demand for excavators in Brazil has steadily increased by an average of 40% annually since 2018, and is expected to grow by 23% compared to the previous year this year as well.

Hyundai Construction Equipment explained that since establishing its factory in Rio de Janeiro, Brazil in 2013, it has raised its market share from 17.8% in 2018 to 19.4% in the first half of this year, and has ranked second in the Brazilian market since 2019. Last month, it also achieved cumulative sales of 1,000 excavators in Latin America originating from Brazil.

A Hyundai Construction Equipment official said, "The signing of the supply contract with Armak is especially meaningful as it reflects recognition of our equipment quality and delivery reliability in the continuously growing Brazilian market," adding, "We plan to do our best to expand our market share in Latin America with Brazil as a base in the future."