- A Chinese investment company has been officially established, and the company aims to sell W3 trillion worth of goods a year in China by 2010.
- Doosan Infracore is expanding strategic investment in China and fostering topnotch local talent.



China is strategically important for Doosan Infracore to realize its long-term goal of ranking among the top five in the global infrastructure support business. Therefore, top management has announced a vision and operational plans that include W3 trillion (over US$3.1 billion) in annual sales in China by 2010.

More than 250 people attended a ceremony in Beijing on November 7 to mark the establishment of Doosan Infracore China Investment Co. (DICI) In his address, President Choe Sung-chul revealed a "Ten-Ten" plan that calls for operating profit to reach 10% (W1 trillion) of W10 trillion in total annual sales in 2010. He said that this accomplishment would rank his company among the global Top 5. President Choe declared that DICI would be a lynchpin in the corporate globalization strategy. He added that the new holding company would enable Doosan Infracore to become the leader of the infrastructure support business in China, which will serve as a "second home market" for the company.

Doosan Infracore China Investment Co. will be responsible for expanding Doosan Infracore's strategic investments in China as well as for recruiting and training excellent Chinese workers. The investment company will formulate strategies for all China-related business and play a leading role in any new projects begun in the country. In addition, DICI is tasked with overseeing and supporting the construction equipment, machine tool and industrial vehicle subsidiaries already operating in China. The support function will cover legal affairs, taxation, accounting, PR and communication, elevating the level of specialization and efficiency of China operations as a whole.

With the investment company as the base, Doosan Infracore will introduce new products to suit the Chinese environment. Existing operations will be expanded by increasing plant capacities and extending product lineups. The company will also seek out new business possibilities, and establish local technology centers that can develop products specifically for the Chinese market.

Doosan Infracore plans to increase investment in the local development and production of core components. Parts and materials procurement will be integrated to cover operations in both China and Korea, helping to address rapidly rising demand for basic parts.

In 1994, Doosan Infracore (then part of Daewoo) established production subsidiaries for excavators and machine tools in Yantai, Shandong Province. These plants sold US$390 million worth of products in 2005 and their total sales are expected to climb 40% to US$550 million this year.

Doosan Infracore has been China's leading excavator manufacturer since 2000, and the excavators have scored the highest on local customer satisfaction surveys each of the past four years. The company currently holds more than 20% of the Chinese excavator market.