Doosan Group Vice Chair Park Geewon (left) shakes hands with the Mexican state of Nuevo León Governor Samuel Garcia (Courtesy of Doosan)
Doosan Bobcat Inc., a construction machinery and equipment maker under South Korean conglomerate Doosan Group, aims to boost its sales in North America with a 400 billion won ($288.8 million) plant in Mexico to be constructed by 2026.
The company said on Friday that it broke ground on a factory of loaders, an equipment used to move or load materials for construction, in Monterrey, the capital of the northeastern Mexican state of Nuevo León on June 13.
Doosan Bobcat will produce its flagship product M-Series loader of compact size in the 65,000-square-meter-factory for sales in North America.
The first Mexico-based plant of Doosan Bobcat will increase the company’s loader production capacity by 20%, a Doosan Bobcat official said.
Doosan Bobcat has been a leader in the global construction machinery market, and the new production facility will back Doosan Bobcat’s continued growth, said Doosan Group Vice Chair Park Geewon.
The construction machinery equipment operates production facilities in Korea, the US, the Czech Republic, France, Germany, India and China.
The company will respond to rising demand for construction machinery in North America. The construction machinery market in North America is forecast to reach $36.2 billion by 2027, up 13.5% from 2023, according to global market data research firm Statista.
Doosan Bobcat’s sales, driven by an increase in the North American market, surged 97.1% to $5.6 billion in 2023 from 2019.
By Hyeon-woo Oh
ohw@hankyung.com
Jihyun Kim edited this article.
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