Chairman Kwon Oh-kap of Hyundai Heavy Industries Holdings (HHIH), President Cho Young-chul of Hyundai Genuine, and President Son Dong-yeon of Doosan Infracore look into major facilities of Doosan Infracore’s Incheon plant, acquired by HHIH, on Aug. 20.

Hyundai Heavy Industries (HHI) Group announced on Aug. 19 that Hyundai Genuine and KDB Investment (KDBI) had paid the acquisition price of Doosan Infracore to Doosan Heavy Industries & Construction, completing the acquisition.

The Hyundai Heavy Industries Holdings (HHIH)-KDB Investment Consortium signed a main contract with Doosan Heavy Industries & Construction to acquire a 34 percent stake in Doosan Infracore for 850 billion won in February.

Hyundai Heavy Industries Holdings is the holding company of Hyundai Heavy Industries Group.

If the acquisition is wrapped up, Hyundai Genuine will be the 2nd sub-holding company of Doosan Infracore ranking first in the domestic market and Hyundai Construction Equipment ranking second.

In particular, Hyundai Genuine plans to grow into a global top five company in the construction equipment sector by maximizing synergies between the two companies.

In fact, as Kwon Oh-gap, HHIH chairman, serves as a co-CEO of Hyundai Genuine, the group is expected to intensively foster the construction machinery business as one of the group’s core businesses together with the shipbuilding and energy businesses.

In addition, the strategy is to increase the global market shares of Doosan Infracore and Hyundai Construction Equipment by 2025 to a 5 percent or more share of the global market by 2025.

“Based on maximizing synergies between Doosan Infracore and Hyundai Construction Equipment, we will leap forward as a global top player with a global market share of 5 percent or more,” said Hyundai Genuine co-CEO Cho Young-chul.

Chairman Kwon sent a letter to Doosan Infracore executives and employees, encouraging them to go forward to become the world’s best construction machinery manufacturer with a sense of mission as a construction machinery company representing Korea.

“I really welcome you to Hyundai Heavy Industries Group,” said Chairman Kwon in the letter.

“We decided to acquire Doosan Infracore from Doosan Heavy Industries & Construction because we are confident that we could lead the global construction machinery market just like we do in the shipbuilding business,” Kwon said with respect to the backgrounds of Hyundai Heavy Industries’ acquisition of Doosan Infracore.

“We will develop the construction machinery business into one of our core businesses and ask Doosan Infracore to play a pivotal role in attaining this goal.”

Kwon also then expounded his management policies for Doosan Infracore. Chairman Kwon said, “Doosan Infracore and Hyundai Construction Equipment must achieve a greater goal of advancing Korea’s construction equipment industry through synergy generation. We will put our utmost efforts into finding optimal solutions in all aspects of management, such as development, sales and purchasing.”

“Technology will determine the success or failure of a company in the construction equipment business,” Kwon continued. “Let’s maximize the two companies’ technological excellence and power in order to fully satisfy customers.

Hyundai Heavy Industries Group CEOs and key executives visited Doosan Infracore’s production site for the first time since the acquisition of Doosan Infracore on Aug. 20.

Chairman Kwon visited the Doosan Infracore’s Incheon Plant which includes the corporate headquarters along with Cho Young-chul, president of Hyundai Genuine and Chung Ki-sun, HHIH vice president.

Under the guidance of Son Dong-yeon, president of Doosan Infracore, Kwon and other officials took a tour of major production facilities such as an integrated R&D center, a small engine plant, and an excavator assembly plant.

Chairman Kwon Oh-kap of Hyundai Heavy Industries Holdings delivers a frame of the late Hyundai founder Chung Ju-yung’s management tents to President Son Dong-yeon of Doosan Infracore during his trip to Doosan Infracore’s Incheon plant on Aug. 20. (Photos: HHIH)

They encouraged employees as they became employees of Hyundai Heavy Industries Group. In particular, Kwon showed a big interest in Doosan Infracore’s technological power by visiting the integrated R&D center first and looked into  new exactor models.

Kwon looked around the production site in his working clothes. “The reason Doosan Infracore is competitive now thanks to the efforts being made by its employees,” Kwon said. “We will spare no support to help Doosan Infracore grow further into a global top-tier company.”