Equipment Report

Hyundai plans to merge 2 divisions

The Suwanee, Georgia, office of South Korean conglomerate HD Hyundai has announced that two of its construction equipment divisions operating in the United States will merge.

HD Hyundai says the merger will combine HD Hyundai Infracore, which oversees the Develon brand, and HD Hyundai Construction Equipment. The Hyundai and Develon brands will continue to coexist, the equipment maker says.

The two construction equipment divisions will create a new company, tentatively named HD Construction Equipment, that will be fully combined by Jan. 1, 2026, pending shareholder approval and regulatory review.

The two companies currently operate independently in North America through distinct dealer networks, and that structure will remain in place, according to HD Hyundai.

Develon North America CEO WH Kim says, “While this merger creates a more powerful global entity, we are committed to ensuring stability and continuity for our dealers and customers in North America.”

“Our dealers will continue to work with the same staff they do today, and the Develon and Hyundai brands will continue to be strong, independent forces in the market,” Kim adds.

HD Hyundai says advantages of the merger include greater price competitiveness through increased scale; enhanced supply chain efficiency and product quality; expanded aftermarket support; and growing the product lineup.