Hyundai aims to expand production capacity with investment

Hyundai Construction Equipment plans to invest $170 million to expand production capacity at its facility in Ulsan, South Korea. Photo: Hyundai Construction Equipment Americas

Hyundai Construction Equipment, parent company of Hyundai Construction Equipment Americas, plans to invest $170 million in its factory in Ulsan, South Korea, to increase production capacity by 50 percent and simplify manufacturing processes for increased efficiency.

With the investment, Hyundai Construction Equipment Americas says its parent company will increase its capacity at Ulsan – the major production base – to 15,000 units of construction equipment. The investment will be spread across four years.

“This increase in manufacturing capability means that Hyundai will be able to address global growth in construction activity,” says Stan Park, president of Hyundai Construction Equipment Americas. “For North America, this positions us to better meet demand arising from planned investments in infrastructure expansion.”

Hyundai Construction Equipment’s investment is focused on restructuring production lines to maximize and expand production capacity for excavators, wheel loaders and other types of construction equipment. Hyundai Construction Equipment will merge production and assembly functions from one factory into two, simplifying workflow processes, increasing efficiency and reducing logistics costs.

“Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top five,” says Choi Cheol-gun, CEO of Hyundai Construction Equipment who also heads Hyundai Heavy Industries Group’s Global Production Innovation Center. “With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”