HD Hyundai, the holding company of South Korea’s Hyundai Heavy Industries Group, announced on July 1 that it will merge its two construction machinery affiliates—HD Hyundai Construction Equipment and HD Hyundai Infracore—into a single entity tentatively named “HD Construction Equipment.”
The merger is designed to strengthen the company’s competitiveness by integrating two complementary businesses: one focused on mid- to large-sized excavators and wheel loaders, and the other specializing in compact equipment and engines. By unifying the operations, HD Hyundai aims to respond more quickly to market demands, optimize its product portfolio, and secure long-term growth amid global industry uncertainty.
The boards of both companies approved the merger plan on the same day. The deal will be structured so that HD Hyundai Construction Equipment, the surviving entity, will issue new shares to shareholders of HD Hyundai Infracore.
Under the agreed ratio, one share of HD Hyundai Infracore common stock will be exchanged for 0.1621707 shares of HD Hyundai Construction Equipment.
The merged company is scheduled to launch on January 1, 2026, following a shareholder meeting on September 16 and regulatory reviews, including antitrust approval.
The move is aimed at strengthening competitiveness amid ongoing global economic uncertainty and intensifying industry competition. The merger will allow the new entity to respond more swiftly to market demands while enhancing its technological capabilities and cost competitiveness.
The combined company will continue to operate under a dual-brand strategy using both the “HYUNDAI” and “DEVELON” brands. It aims to reach sales of over $10.8 billion by 2030 through core businesses such as construction equipment, engines, and aftermarket services.
HD Construction Equipment plans to streamline its product portfolio and specialize production by region to achieve economies of scale.
It also intends to expand its compact equipment business, building a full lineup that ranges from compact to ultra-large construction machines.
To diversify its revenue sources, the company will scale up high-potential areas such as its engine business and aftermarket operations focused on parts replacement and maintenance.
It will also leverage integrated R&D capabilities to drive innovation in electrification, smart equipment, and total solutions for future growth.
