South Korea’s HD Hyundai XiteSolution said on Friday that its construction equipment affiliates HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co. have opened the customization plant in Brunswick, Georgia, the US.
The plant is where semi-finished products manufactured in South Korea are assembled and completed locally according to customer order specifications.
HD Hyundai XiteSolution explained that such a customization center is necessary to expand the market, given that customized orders are typical in the construction equipment business.
The plant, with a total floor area of 41,300 square meters, combines the assembly centers of HD Hyundai Construction Equipment and HD Hyundai Infracore, which were previously operated separately in Savannah, Georgia.
With the establishment of this integrated center, the two companies expect to achieve both tangible and intangible synergies through economies of scale, as well as significant reductions in logistics costs and delivery times by linking to Brunswick Port, which handles the second-largest volume of roll-on/roll-off (ro-ro) ships in the US.
The plant will be used as a strategic base for cross-selling, as both companies work to increase their market share in North America.
According to the global market research firm BlueWeave Consulting, the North American construction equipment market is expected to grow by an average of 6% annually, reaching $40 billion by 2028.
By Hyung-Kyu Kim
khk@hankyung.com
