HD Hyundai Construction Equipment and HD Hyundai Infracore will merge on 1 Jan 2026, uniting Hyundai and Develon brands
In a bold move to reshape the global construction equipment landscape, HD Hyundai Construction Equipment and HD Hyundai Infracore have announced their merger to form a unified entity: HD Construction Equipment (tentative name), officially set to launch on January 1, 2026.
The upcoming merged company focuses exclusively on Hyundai and Develon, maintaining them as separate brands. The BOBCAT brand remains with the Doosan Group and outside the merged entity as it was explicitly excluded from the Hyundai Heavy Industries purchase of Doosan Infracore in 2021.
The merger, approved at board meetings held on July 1, 2025, marks a pivotal moment for the construction division of HD Hyundai. With combined revenue currently estimated at NZD$10.4 billion, the new entity has set its sights NZD$18.6 billion in revenue by 2030.
A strategic leap forward
The rationale behind the merger is clear: to increase agility amid rising global competition, enhance technology development, reduce costs, and ultimately position Korea as a leading force in the construction equipment sector.
“This initiative is essential for sustainable growth and marks a major milestone in advancing Korea’s construction equipment industry,” says Cho Young-cheul, president and CEO of HD Hyundai XiteSolution.
Dual brands, unified strategy
The new company will leverage Hyundai and Develon as its flagship brands, focusing on construction equipment as its core business while expanding into engines and aftermarket services. The dual-brand strategy allows HD Construction Equipment to retain brand equity while operating with streamlined, unified leadership.
The company plans to strengthen its fundamental competitiveness by optimising product lines, specialising regional production, and building a full-spectrum lineup – from compact to ultra-large machinery.
Diversifying for the future
A key pillar of the strategy is revenue diversification. HD Construction Equipment will grow its engine division, boost aftermarket services, and tap into next-generation technologies. Priorities include developing electrified and smart construction equipment, along with total integrated solutions supported by robust R&D capabilities.
By aligning operations under a single decision-making structure, HD Construction Equipment is poised to achieve economies of scale and greater market responsiveness.
Share exchange and next Steps
Under the terms of the merger, HD Hyundai Infracore shareholders will receive 0.1621707 shares of HD Hyundai Construction Equipment for each share they hold. The merger remains subject to regulatory approval and an extraordinary shareholders’ meeting scheduled for September 16, 2025.
As the industry shifts toward innovation and resilience, HD Construction Equipment says it aims to lead – not just as a manufacturer, but as a global symbol of Korean engineering excellence.
