Hyundai Heavy Industries (HHI) has announced the separation of the Construction Equipment division from the mother company Hyundai Heavy Industries Co., Ltd. The new company was officially established with the name Hyundai Construction Equipment Co., Ltd on April 1, 2017. All activities of HHI’s Construction Equipment division will move to this new company beginning of April.
The spinoff is based on a restructuring plan which was started last year. For the Construction Equipment division, the move is said to offer great possibilities and an improved agility. The newly established mother company will be able to make independent decisions in the interest of the industries and markets worldwide. Despite the fact that the new company is named Hyundai Construction Equipment, the company has emphasised that both Forklift and Construction Equipment are equally managed with the same goal to grow the market share.
For Europe, it has been decided that the name of the company will change in the course of this year to Hyundai Construction Equipment Europe.
Hyundai Construction Equipment Europe has a strong commitment to growth. This year, the European HQ will move to Tessenderlo, Belgium. This €30 million investment project will enable Hyundai Construction Equipment to increase its success in Europe. On 81 000 m² of land, a new headquarters, a new warehouse, a training facility, an event hall and a showroom are now under construction. The new facility is an excellent step forward for the European division.
For 2017 the European strategy is to focus on the mini excavator market and wheel loaders active in the recycling and closely related industries. In the forklift business division priority will be given to the heavy diesel forklift market and the warehousing range. Both divisions will focus more on parts sales. In order to gain success in these areas, Hyundai Construction Equipment Europe will further expand the dealer network, widen the product range and focus on key customers.