Develon–Hyundai Merger Creates New Global Giant

HD Construction Equipment has begun operations following the merger of Hyundai Construction Equipment and HD Hyundai Infracore, creating South Korea’s largest full-line construction equipment manufacturer with annual sales of around $5.5 billion.

The merger took effect on January 1 and was marked by a launch ceremony at HD Hyundai’s Ulsan campus, signalling the end of a complex integration process that brought together two long-established machinery businesses. 

Moon Jae-young was introduced as the first president of the new company.

The deal is the latest step in more than two decades of change in South Korea’s construction equipment industry, beginning with Doosan’s acquisition of Daewoo Machinery in 2005 and its purchase of Bobcat two years later, which set the stage for later consolidation. 

Following several restructurings, Hyundai Heavy Industries acquired Doosan Infracore in 2022 to help the company manage its debts, while Bobcat remained with Doosan.

A series of rebrandings in 2023 laid the groundwork for the merger. Doosan’s construction equipment business became Develon under HD Hyundai Infracore, while Hyundai Construction Equipment was renamed HD Hyundai Construction Equipment. 

Both companies were placed under the HD Hyundai XiteSolution holding structure, part of the wider HD Hyundai group. In 2025, HD Hyundai announced plans to merge the Hyundai and Develon operations, a process now complete with the formation of HD Construction Equipment.

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The new company aims to establish both brands as globally recognised leaders and nearly double sales to $10 billion by 2030. According to KHL’s 2024 Yellow Table, HD Hyundai Infracore ranked 21st worldwide with $3 billion in sales, while HD Hyundai Construction Equipment placed 25th with $2.5 billion.

HD Construction Equipment plans to strengthen its core equipment, engine and aftermarket businesses while reducing product overlap and leveraging shared procurement and logistics to improve cost efficiency.

Production will continue across facilities in South Korea, India, China, Brazil and Norway. In North America, Hyundai and Develon machines will continue to be sold through separate dealer networks.

Next-generation excavators are expected to be a key driver of global growth, with US launches planned for ConExpo 2026 following earlier debuts in Korea and Europe. 

The new models will feature technologies including a full electro-hydraulic system, Smart Around View Monitoring, Radar Object Warning System, Virtual Wall and Advanced Lift Assist.

At the launch, HD Hyundai chairman Chung Ki-sun said, “I anticipate that HD Construction Equipment’s relentless pursuit of excellence will facilitate its entry into emerging markets and drive the development of next-generation models.”

Shares of HD Hyundai Construction Equipment will continue trading under a new ticker, while trading in HD Hyundai Infracore was halted late last year. New shares of HD Construction Equipment are expected to begin trading on January 26.

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