- The first results from Montabert’s China Breaker Project
Doosan is reinforcing its drive toward becoming one the top five global ISB businesses by reinforcing synergy among its subsidiaries.
Following the M&As, Doosan Infracore has been striving to maximize the synergy among its subsidiaries.
The China Breaker Project by Montabert, part of the subsidiary DII Attachments, represents some of the first tangible results of this effort to promote internal cooperation and synergy. Doosan Infracore has integrated the industry-leading breaker development capabilities of DII Attachments’ Montabert, which it took over in 2007, with Korea’s outstanding production capabilities and Doosan’s strong dealer network in China.

- An integration of European technology, Korean production and Chinese sales
In recent years, Montabert plants in Europe have experienced soaring production and logistics costs, due in large part to a steadily-appreciating Euro, which in turn were affecting sales. Montabert’s hydraulic breakers enjoy an excellent global reputation for their outstanding performance and technological sophistication. However, their large price tags caused many prospective buyers to hesitate before making purchase decisions.
In an effort to expand its global market share, Montabert made attempts to advance into China. Unfortunately, the Chinese market was already dominated by local and foreign companies, and Montabert lacked knowledge of the market.
Montabert merged with DII Attachments in December 2007, and employees of Montabert and Doosan Infracore formed a new TFT in July 2008 The team began to carefully reassess the China Breaker Project from many different angles.
In order to provide products that are priced similarly to competing models while offering higher quality, it was paramount to find a company with the production capabilities to produce Montabert’s high-quality products in their original designs, but at lower prices.
The TFT determined that the machining, heat-treatment and grinding processes in hydraulic breaker production were the most important factors in determining the quality and marketability of the final product. They selected a Korean manufacturer with the necessary production facilities and technologies to satisfy the strict product requirements. Full production began after pilot production results satisfied the Chinese specifications. The first Chinese shipment, which totaled more than 40 units, was made on schedule in July 2009.
With annual sales of more than 35,000 units, the Chinese hydraulic breaker market is huge. Market prospects are also bright, as demand continues to surge by some 25% per year. Meanwhile, Doosan Infracore subsidiaries in China are leading the domestic excavator and wheel loader market, with a share of 20% and a sales network of 32 major dealers located throughout the country. Breakers form a very important product area supporting the construction equipment business. Doosan Infracore already has an established sales network and strong brand recognition in China. These facts gave confidence to the company that the China Breaker Project could be expanded aggressively from the outset.
The arrangement is beneficial for Chinese buyers as well, as they can purchase high-quality, competitively-priced hydraulic breakers through a “one-stop shopping service.” Also, the application of Montabert’s technology has improved the machines’ protective functions, and made them more durable while ensuring excavator performance.
Doosan Infracore expects the union of European technology, Korean production and a Chinese sales network to allow Montabert to take the leading position in the market for construction equipment attachments. This project is also expected to serves as an example of generating synergy within the Doosan Infracore organization and lead to synergy in other areas.

- Plans to become industry leader in 2010 through global strategies
In August 2009, the first Montabert hydraulic breakers, the 1.5-ton LX2025, went on sale in China. The lineup will be augmented to include 1.8 t, 2.5 t, 360 kg and 850 kg models, and five new models will be introduced in China in 2010. The company will use this lineup to aggressively go after a large share of the global breaker market. Moreover, new investments will be made to accommodate the rapidly growing market. Hydraulic breaker production capacity will be increased from approximately 6,000 units per year to more than 20,000 units by 2014.
Global annual sales are projected to rise by an average of 150-200%, from over 2,500 units in 2010 to at least 14,000 units in 2014, generating sales revenues of €200 million and representing at least 10% of the global market.