HD Hyundai Construction Equipment and HD Hyundai Infracore are set to merge from the start of 2026.
The HD Construction Equipment unified business, which is targeting US $11 billion revenue by 2030, will continue to operate through two distinct brands – Hyundai and Develon. The merger will take effect from January 1, 2026, following shareholder agreement and regulatory review.
“This merger will drive sustainable growth for the construction equipment division of HD Hyundai, helping us strengthen our position in the global market,” said Cho Young-cheul, president and CEO of HD Hyundai XiteSolution, the overarching organisation overseeing the construction business.
The merger of the two companies is designed to boost their agility in meeting market demands. The move is tipped to strengthen future technological capabilities and ensure increased cost competitiveness.
The business added that HD Construction Equipment will optimise its product lines and production facilities by region, expanding its compact equipment business and establishing a full-line range, from compact to ultra-large construction machinery.
The core business area will be construction equipment, supplemented by growth in engines and aftermarket services.
Since HD Hyundai Infracore was incorporated into the HD Hyundai Group in 2021, the two companies are said to have actively pursued synergies, resulting in additional profit generation through a reduction in purchasing costs and logistical expenses. The merger is expected to enable continued expansion and optimisation of the product line-up, the development of specialised products and services, and faster decision-making in response to the changing needs of customers.
The Hyundai and Develon brands will continue to develop separate dealer networks, operating under a competitive structure. Both companies will retain their own distinct product identity, designs and user experience features.
