With the dawning of 2007, each Business Group head presented the objectives and tasks ahead for his respective unit so that Doosan Infracore can realize the Keyword for the year : “we are standing proudly in the world”


  Last year the Construction Equipment BG broke numerous performance records, including unprecedented sales revenue of US$1.5 billion. We maintained a leading position in the Chinese and Korean construction equipment markets and enhanced our stature in the US, Europe, and Asia-Pacific.
  On behalf the CE BG, I would like to thank our dealers and customers for our phenomenal success stories, for you make it all possible. We truly believe that your success is our success, and vice versa. Without your trust and support, we would be hard pressed to achieve meaningful results from our strategic initiatives.
  We have established a vision of becoming one of world’s five foremost construction equipment makers, and we have formulated strategic initiatives to shape our future competitiveness across the value chain. We have already launched a zero-tail-swing excavator to meet global requirements, and wheel loaders have been designated as our second major product line. Also, we have augmented our parts warehouses and product support services across all regions to respond more quickly to your needs as customers and dealers.
  This year, the CE BG will implement numerous initiatives to achieve our vision and growth. I will personally pay particular attention to those initiatives that address the needs of you the customers and dealers, such as product line-up expansion and product support services.
  I would like to extend my best wishes to you and your families. May you all enjoy continued success in 2007.


  Sales revenue in 2006 rose twenty-one percent year on year to US$800 million, while operating profit was up sixty-five percent. The coming year marks our 30th anniversary in the machine tool business, and our goal is to achieve W1 trillion (over US$1 billion) in sales revenue during 2007. We also expect operation profit to be around fifteen percent of total sales. Breaking US$ 1 billion in sales will put us in the ranks of the world’s leading machine tool manufacturers, and our rapid advance in this business has been met with surprise.
  Last December 1, we acquired the Machine Tool Division of Doosan Mechatech, unifying the “Doosan” machine tool brand under one corporate entity. This move will prevent confusion in the marketplace while reinforcing the Doosan Infracore lineup in areas where we have been relatively weak, namely die and mold machining centers, and vertical turning centers. Most importantly, we have acquired 175 experienced and highly skilled engineers, greatly bolstering our business competencies.
  This coming May we will host the Doosan Infracore International Machine Tools Fair (DIMF) at the Changwon factory. You will have an opportunity to see more than fifty new models featuring new-concept exterior designs and upgraded functions. You will have an expanded selection, while our stature will rise in the industry. We will also promote our new lineup at the CIMT show in China and EMO in Germany.
  We are also increasing our customer support as we introduce various multifunctional and high-end models. Our technical center network will be expanded to cover the US, Europe, China and India, and we are opening a new office in India. At the same time, we will host a series of technical seminars in strategic markets and will strengthen our customer-centric marketing programs.
  An integrated inspection system is being built to enhance product reliability, and quality control will be unsurpassed anywhere. Our parts warehouses are being expanded as well to respond better when after-sales service is required. We are also improving our price competitiveness so that our customers can purchase the models they want at the best value for the money.


  The Forklifts BG saw sales rise seventeen percent in 2006 to reach US$500 million, while operating profit was up 115% year on year. In 2007 we will strive to increase sales by thirteen percent and operating profit by fourteen percent.
  To do this, we will complete the introduction of next-generation models covering the entire lineup. We will also announce our official changeover to the single “Doosan” brand this coming March, in conjunction with the Birmingham show and American dealer meeting. We expect to seek robust sales growth from the next-generation models, with their new styling and operator comfort features.
  The Head Office will take action to bolster cost competitiveness in the face of a stronger Won currency. At the same time, we will remain focused on satisfying your needs with responsive, high quality services.
  We sold 2,205 units in China last year, fifty-six percent more than in 2005. We met with Chinese dealers on January 17 and set our 2007 goal at 5,000 units. To become one of the world’s top five forklift makers, we must increase our sales in emerging markets as well as in the major export destinations of America and Europe. In the coming year we will step up efforts to find the necessary growth drivers and show results.
  Our competitors in China are busy trying to use the domestic market as a springboard to global markets. We will counter them by adding a two-ton electric models and LPG models to the “G” line of forklifts developed specifically to local Chinese requirements. We will leverage the strategic value of the “G” series to boost both sales and profits.
  Locally-hired managers will head up the US and UK subsidiaries from this year, demonstrating our commitment to becoming a global operation. I would like to ask all of you for your support so that our directional change progresses smoothly and we all grow together as partners.


  The year 2007 was a time for us at the Engine & Materials BG to solidify our position by overcoming various challenges such as soaring exchange rates, decreasing domestic demand and an everchanging business environment. Despite the adversity, we had productive year, increasing our revenue eleven percent over the 2006 figure.
  We expect more challenges in the coming year; increased competition and uncertain exchange rates may negatively affect our business environment. However, difficult times are crowning moments for the Engine & Materials BG. We will continue to aim for growth in the global arena and to increase profits steadily. To this end, we are initiating the following policies and methods:
  First, we will deliver the world’s best quality products, raising our own quality standards to deliver products that will earn your confidence.
  Second, we will increase our competitiveness by pursuing lean manufacturing, implementing a design-tocost (DtC) program, integrating our Purchasing & Supply Management (PSM) with the DtC, and sourcing globally. As a result, we will be able to establish the foundation for the achivement of our vision, “Takeoff as the Global Engine Maker.”
  Third, we will work on a new growth platform. Expanding our sales both domestically and internationally, we are seeking to supply more vehicle manufacturers in China, Russia and the US.
  Finally, to make all this work, we will focus on core products and regions. Our selective focus will simplify operations, helping to increase the quality of both products and services.
  In 2007 we aim to increase sales by more than ten percent, but this task cannot be done alone. I ask you, our dealers and partners, to join hands with us in achieving this goal. We anticipate a banner year, and I look forward to working with you to make it happen.
  Thank you very much for your support and Happy New Year!


  On this occasion, let me wish you a Happy New Year and thank you for your interest in the Defense Products BG during the year just past. As you may know, we have emerged as one Korea’s main defense product manufacturers.
  Our company entered the defense industry in 1973 and we have played a major role developing this business in Korea. We have developed core components as well as diverse weapons systems for the ROK Army, Navy and Air Force during the past three and a half decades.
  We started supplying the K200 Korean armored fighting vehicle in 1984 and have developed a series of K200 vehicles since then. Today we are also mass producing the twin 30mm self-propelled antiaircraft gun system (Bi-ho) and the short-range self-propelled surface-to-air missile system (Chun-ma).
  Recently we co-developed a nextgeneration infantry fighting vehicle (NIFV) with the Agency for Defense Development, and preparations for mass production are now underway. At the same time, we are currently developing some of the world’s most advanced 6x6 and 8x8 armored wheeled vehicles.
  The Defense Products BG is also involved in numerous overseas marketing activities. We exported K200s to the Malaysian Army in 1993 and more recently moved into the business of special-purpose vehicles. We are currently seeking to join a project to upgrade M113 armored personnel carrier in Vietnam. We also exported Barracuda 4x4 armored wheeled vehicles to the Indonesian National Police in 2004.
  We put our highest priorities on customer satisfaction and on research and development, and we can confidently pledge to you that we will become a major world player in the future. Let me thank you again for your support for us and wish you a happy and healthy New Year.