HYUNDAI Heavy Industries (HHI) and CNH Industrial have agreed an exclusive strategic alliance for the production and development of mini-excavators.
The ten-year deal, with an option for renewal, will see CNH Industrial market four compact excavator models to be supplied as complete products by Hyundai through OEM production, and ten additional mini-excavator models in the form of complete knock down kits through license production.
Hyundai said it expects to double its sale of compact excavators over the next decade.
Mini-diggers to be rolled out under the agreement will hit the market early next year.
The two equipment giants have also agreed to jointly develop new models and upgrade existing machines.
S.G. Rhee, chief operating officer of HHI’s Construction Equipment Division said, “We have noticed that the global demand for the mini-excavator market has been more stable than the bigger-sized construction equipment, and we also expect that the demand continues to increase for years to come.
“In view of the trend, we come to a conclusion that the alliance with CNH Industrial which has multiple brands including Case Construction Equipment and New Holland Construction will bring a win-win solution for both companies.
“Moreover, we believe that the partnership will surely lay a solid foundation for the compact and mini-sized construction machine business of HHI’s Construction Equipment Division.”
Rich Tobin, CEO of CNH Industrial added, “This relationship brings together the know-how and expertise of two leading global construction equipment manufacturers, allowing us to take advantage of synergies in terms of technology selection and adaptation, component sourcing, and research and development costs.”