Hyundai plans merger of 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, says the equipment maker.

The timing of the merger calls for the two construction equipment divisions to create a new company “tentatively named HD Construction Equipment” that will be fully combined by Jan. 1, 2026, pending shareholder approval and regulatory review.

According to HD Hyundai, the two companies currently operate independently in North America through distinct dealer networks. That independent brand and dealer network structure will remain in place, according to the firm.

The global producer of excavators, wheel loaders and other construction and material handling equipment says the merger will create “a stronger global construction equipment business while maintaining the current success for the Develon and Hyundai brands in North America.”

The Develon brand was introduced in early 2023 and was applied to equipment formerly sold under the Doosan name. HD Hyundai acquired the Doosan Infracore equipment line in August 2021.

“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,” says WH Kim, CEO of Develon 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 lists advantages of the merger as including: greater price competitiveness through increased scale; enhancing supply chain efficiency and product quality; expanding aftermarket support, including parts and service; and growing the product lineup, ranging from compact to ultra-large machines.

The Develon line of equipment in North America currently includes excavators, miniexcavators, material handlers, log loaders, road builders, dozers, wheel loaders, articulated dump trucks, compact track loaders and attachments for compact and heavy equipment.

HD Hyundai says it supplies more than 200 dealer locations in North America that provide sales, parts and service support to its customers.