Last week, Hyundai Heavy Industries purchased Doosan Infracore, creating a combined company in the top ten largest global construction equipment manufacturers. The plan makes Doosan Infracore a subsidiary of Hyundai Genuine group, of which Hyundai Construction Equipment is also a subsidiary. Both Doosan and Hyundai are South Korean companies. After the purchase, they will continue to operate independently.
Most know Doosan for its Bobcat brand, but Bobcat is not part of the deal. Doosan Bobcat and Doosan Infracore separated their businesses in 2018.
Doosan and Hyundai subsidiaries will independently “grow together, complement each other, even compete in good faith in all areas, including technology, production, purchasing, sales, and quality,” Doosan said in a news release. “This will enable our business to expand and associate with other companies operated by the whole HHI group.”
Doosan currently focuses on commercializing Concept-X, which combines artificial intelligence with information and communication technologies. Electric excavators, battery packs, and hybrid fuel cells will use Concept-X.
“Together, the two brands will combine as a top global player, putting us much closer to achieving the goal of becoming a global top 5 player,” Doosan says.
Hyundai intends to move to a higher rung with the purchase of Doosan, making the company one of the largest construction entities in the world.