- The move is part of a global leadership plan.
- Annual output is set at 15,000 units, with sales of W2 trillion by 2010.

Machine tools represent a mainstay business at Doosan Infracore, and the company will bolster its market position by acquiring the Doosan Mechatech Machine Tool Division, which produces turning centers and machining centers. The two companies will sign a formal contract effective January 1, 2007.

The W79 billion acquisition will increase Doosan Infracore's machine tool supply capacity, help raise brand value and add greater synergy. The ultimate goal is to make Doosan Infracore a global leader in the machine tool sector.

Currently, the combined machine tool production capacity in Korea and China is 10,000 units a year. With the new production unit, the company plans to boost annual output to 15,000 units in 2010 and increase annual machine tool sales to W2 trillion (over US$2.17 billion), double the current figure, by that time.

Until now, Doosan Infracore and Doosan Mechatech have operated separate machine tool businesses while using the same "Doosan" brand. This has caused confusion among customers, and overseas dealers have been at odds with one another. Combining the two operations will solve these problems and help to enhance brand value.

Moreover, the machine tool-related competencies of both operations can now be combined to maximize a strategic synergy effect. R&D capabilities and procurement leverage will be strengthened for improved product competitiveness. The sales network inside and outside Korea will be integrated, and marketing will be better focused for greater all-around efficiency.

Doosan Infracore will concentrate on further development of the most competitive Doosan Mechatech models such as die & mold machining centers and vertical turning centers.

In addition to the production division purchase, Doosan Infracore plans to invest W12 billion (US$13 million) to build a new machine tool R&D wing with the latest research equipment. The new facility is scheduled for completion in the first half of 2007 and will help to bolster R&D competencies as well as output capacity.