Hyundai CE to expand production capacity by 50 per cent
December 22, 2021 By Rock to Road staff
Hyundai Construction Equipment plans to invest US$170 million in its factory in Ulsan, South Korea, to increase production capacity by 50 per cent and simplify its manufacturing processes to increase efficiency.
The investment will allow Hyundai CE to increase its capacity at Ulsan, its major production base, to 15,000 units of construction equipment.
“This increase in manufacturing capability means that Hyundai will be able to address global growth in construction activity,” said Hyundai CE Americas President Stan Park. “For North America, this positions us to better meet demand arising from planned investments in infrastructure expansion.”
The investment is the largest in the company’s history, since its launch as a newly established corporation in 2017.
Hyundai Construction Equipment’s investment is focused on restructuring production lines to maximize and expand production capacity for excavators, wheel loaders and other types of construction equipment. Specifically, they will merge production and assembly functions from one factory into two.
Choi said, “Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top five,” said Hyundai CE CEO Choi Cheol-gun. “With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”
Hyundai CE plan to reflect ESG
Hyundai CE plans to reflect ESG (Environmental, Social and Governance) factors, through measures such as the use of eco-friendly sub-materials in interior and exterior finish work and configuring production lines in a way that further improves worker safety.
This matches the recent US$65 million construction of HCE’s technology innovation centre. With 16 laboratories employing 100 researchers, the centre will execute research and development projects focused on eco-friendly technologies, energy efficiency and noise reduction.
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