Securing Sales of at Least 4,100 Units This Year... Expected to Surpass $250 Million Since 2011
Proactive Investment in Brazil Plant and Localized Sales Strategy Effective
"Latin American Market Continues Growing Demand for Mining Construction Equipment... Will Lead Market with Customized Equipment"
Hyundai Construction Equipment has been delivering 22-ton excavators to Armac, Brazil's largest construction equipment rental company, since July this year. [Photo by Hyundai Construction Equipment]
[Asia Economy Reporter Kim Heung-soon] Hyundai Construction Equipment, a subsidiary of Hyundai Heavy Industries Group's construction machinery division, is expected to record its highest-ever sales performance in the Latin American region this year. This is due to increased demand for mining equipment caused by rising raw material prices.
Hyundai Construction Equipment announced on the 20th that it sold a total of 2,838 units of construction equipment, including 2,179 units in Brazil, Colombia, Chile, Argentina, and other Latin American countries, as well as 659 forklifts, up to the third quarter of this year. The company explained that including the approximately 1,300 units already secured in orders, it is expected to sell at least 4,100 units by the end of this year.
In terms of sales revenue, the amount exceeds $300 million, surpassing the $250 million recorded in 2011, which was the peak period of the construction equipment market, marking the highest-ever performance in the Latin American region. Earlier, Hyundai Construction Equipment anticipated the growth potential of the Latin American market and completed a production plant in Brazil in 2012.
According to Hyundai Construction Equipment, the Brazil plant's operating rate has increased by 700% compared to its initial establishment, alongside the expansion of the Latin American market. Through this, it produces a total of 2,500 construction equipment units annually, including 2,000 excavators and 500 wheel loaders.
Of the approximately 3,000 construction equipment units sold in the Latin American region this year, about 67%, or 2,010 units, were produced at the local plant in Brazil, minimizing logistics costs associated with interregional transportation and effectively responding to increased orders for construction equipment due to rising raw material prices, the company explained.
Through a locally customized production strategy, Hyundai Construction Equipment currently holds the second-largest market share in the medium-to-large excavator segment in the Brazilian market. In July this year, it achieved cumulative sales of 1,000 excavators made in Brazil for the Latin American market. Additionally, it is strengthening its sales network by newly developing three dealers in Mexico and recruiting a mining-specialized dealer in Peru.
A Hyundai Construction Equipment official said, "The demand for mining construction equipment in the Latin American region is expected to remain strong beyond next year," adding, "We plan to lead the market by developing and supplying equipment specialized for local working environments."
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