HD Hyundai Infracore is targeting the Middle Eastern and African market in full swing with its new brand DEVELON which will hopefully replace the Chinese market that is still going through a stagnant phase.
HD Hyundai Infracore gained a revenue of $330 million (approx. KRW 430 billion) last year in the MEA region which is a sharp increase of 116% compared to $150 million in 2020.
The number of machines sold have also exceeded 2,400 units, marking a 60% increase to that of 2020 mainly due to the company’s focus on securing large scale customers with new advanced technology equipped machine releases and customized services.
The construction equipment market volume in MEA increased from 16,720 units in 2020 to 32,786 units in 2022, which shows that the market is experiencing a steep growth with a 96% increase during the past three years.
According to a global market research agency, Research and Markets, the MEA construction equipment market is growing annually by 4% and is expected to grow to $6.4 billion (approx. KRW 8.5 trillion) in 2028 from its current volume which is at $4.26 billion.
HD Hyundai Infracore has been paying great attention to strengthening its presence in the Middle East through its office in Dubai and is fighting for first place in Saudi Arabia, being ahead of other global competitors after winning large scale construction projects in UAE. This year, it aims to sell 1,200 units which is an increase from 1,000 units sold last year.
With Saudi Arabia planning the world’s largest project, Neom City, which is expected to exceed $500 billion in volume, HD Hyundai Infracore anticipates that this will result in more construction equipment demand in the near future.
The company has also recently established a new African office in Accra, Ghana to expand its network and secure more customers in Western and Central Africa where the market is growing.
As a result, HD Hyundai Infracore has signed supply contracts for a total of twenty nine machines in the Republic of Angola which include twenty excavators and nine wheel loaders. This is the largest contract for the company since starting business in Angola and takes up around 8% of the country’s total market when considering its average market volume is around 370 units per year. The machines will be supplied to one of the largest construction companies in Angola and used when building hydroelectric power dams.
With the launch of its new brand DEVELON, HD Hyundai Infracore also hosted its ‘2023 MEA Dealer Conference’ in Cairo, Egypt to discuss sales strategies. The dealer conference is the first regional meeting since launching DEVELON, where over ninety key stakeholders including HD Hyundai Infracore President Seung-hyun Oh and twenty six MEA dealers attended.
President Oh mentioned that “We have seen unprecedented results in the Middle Eastern and African market in the past five years,” and added, “Along with the new brand launch, we will work on developing different next generation technologies and strengthen the current line up to max our sales capacity in order to reach our goal of becoming a Global Top 5 by 2025.” <EOD>