Hyundai Doosan Infracore Wins Order for 62 Construction Equipment Units in the Philippines... Accelerating Expansion into Emerging Markets

[Asia Economy Reporter Suyeon Woo] Hyundai Doosan Infracore, a construction equipment subsidiary of Hyundai Heavy Industries Group, is actively targeting emerging markets by consecutively securing orders for a total of 62 construction machines from a major customer in the Philippines.

Hyundai Doosan Infracore announced on the 6th that it signed a contract with a local Philippine company constructing a hydroelectric power plant in Iloilo City, southern Panay Island, for 27 crawler excavators of 22t and 34t classes and 12 wheel excavators of 14t and 19t classes. Subsequently, it signed a contract to supply a total of 23 units, including 18 articulated dump trucks of 45t class and 5 excavators of 80t class, to a Philippine mining company. These machines will be deployed to a copper mine in the Bicol region of southern Luzon Island, Philippines.

With this contract, Hyundai Doosan Infracore has sold a total of 138 construction machines in the Philippines this year alone. This represents an approximately 57% increase compared to the previous year, and the market share has risen to 6.2%.

Photo by Hyundai Doosan Infracore

Hyundai Doosan Infracore stated that this order contract was achieved because its excellent local service network and customized sales strategies earned the trust of its customers. In the case of the mining development equipment order contract, the dealer newly established a service post right next to the mine, actively supporting equipment operation explanations and test operations, which had a positive impact on the customer.

In particular, Hyundai Doosan Infracore enhanced the reliability of its A/S (after-sales service) by establishing 'Smart Maintenance' using telematics and equipment management services locally in the Philippines. Through this, it expects additional orders in the Philippine construction equipment market, which has grown 67% compared to last year.

A Hyundai Doosan Infracore official said, "We are strengthening sales strategies for emerging markets expected to grow in the future by analyzing global construction equipment market trends," adding, "Since we have established a superior A/S service network and locally customized lineups compared to competitors in emerging markets, we are confident that our market share will gradually increase."

Meanwhile, according to a recent report released by Off-Highway Research, a global construction machinery specialized research institute, the number of construction equipment sales in emerging markets such as Southeast Asia and South America is expected to reach 291,587 units, recording a growth rate of 372% compared to last year.

Accordingly, Hyundai Doosan Infracore is actively targeting emerging markets such as Southeast Asia, Africa, the Middle East, and Latin America by reducing dependence on China as part of its global market diversification strategy. The cumulative sales volume in emerging markets by Hyundai Doosan Infracore until August was recorded at 4,700 units, an approximately 81% increase compared to the previous year.