Azernews.Az

By Alimat Aliyeva

HD Hyundai Co.'s two construction equipment affiliates—HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co.—are planning to merge next year to form South Korea’s largest construction machinery company, the companies announced Tuesday, Azernews reports, citing Yonhap agency.

HD Hyundai Infracore stated that its shareholders approved the merger plan at an extraordinary general meeting held earlier the same day, while HD Hyundai Construction Equipment is also set to approve the consolidation at its upcoming shareholders’ meeting.

The new entity, which will be named HD Construction Equipment, is expected to officially launch on January 1 after completing all necessary follow-up procedures.

The two companies initially announced their merger plans in July, citing the need to secure future technologies and enhance cost competitiveness amid global economic uncertainty and increasing competition in the construction machinery sector.

The merged company aims to achieve annual sales of 14.8 trillion won (approximately US$10.7 billion) by 2030 and significantly strengthen its position in the global market.

This merger is how it reflects a broader trend among South Korean conglomerates to consolidate and innovate in heavy industries, positioning themselves as key players in the global shift toward smart construction technologies, including automation and eco-friendly machinery.