HCE make big investment in production capacity
Hyundai look to strengthen competitiveness with €150 million investment in Ulsan factory
HYUNDAI Construction Equipment (HCE) are investing €150 million (US$170 million) in their Ulsan production plant in South Korea, increasing capacity by 50%, to more than 15,000 machines per year.
It is the largest investment since HCE’s launch as a newly established corporation within the Hyundai Heavy Industries group.
The move is designed support Hyundai’s growing presence in the global construction equipment market, whilst providing a manufacturing base for a new generation of electric and hydrogen-powered equipment.
In 2020, HCE announced that they plan to bring to market a range of excavators powered by hydrogen fuel cells, produced in co-operation with Hyundai Motors, who have their largest automotive plant in Ulsan.
The investment, to be delivered over the next four years, will increase production at the Ulsan plant by 4,800 units a year, bringing annual capacity to 15,000 excavators, wheel loaders, and other construction models.
The company will merge the production and assembly functions currently in Factory 1 and Factory 2, into a single facility, simplifying the flow of processes and increasing savings by maximizing efficiency.
‘Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top five, the goal of the construction equipment division of the Hyundai Heavy Industries group,’ said chief executive officer Choi Cheol-gon.
‘With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.’