Photo: From the 4th on the left of the front row: Mike Ross, HD Hyundai Construction Equipment’s director of North American sales, Vice-president Moon Jae Young, Wallenius Wilhelmsen Logistics Director Tommy Sidener and Vice-president Mike Rye, HD Hyundai XiteSolution CEO Cho Young-cheul, Wallenius Wilhelmsen Logistics COO John Felitto, HD Hyundai XiteSolution Vice-president Park Chan-hyuk, and HD Hyundai Infracore North American Subsidiary Manager Jeong Kwan-hee
HD Hyundai Construction Equipment and HD Hyundai Infracore established an integrated production center in the USA, spurring their drive to target North America, the world’s largest global construction equipment market.
HD Hyundai XiteSolution announced on the 6th (Fri.) local time that its major affiliates in the construction equipment sector, HD Hyundai Construction Equipment and HD Hyundai Infracore, had held an opening ceremony for the HD Hyundai Customization Center at Brunswick, Georgia, USA on the 4th (Wed.).
The Customization Center is where semi-finished products produced in Korea are assembled and completed on-site according to the specifications ordered by each customer. It is an essential facility for companies seeking to expand their market amid a business environment in which customized production methods are prevalent.
HD Hyundai XiteSolution CEO Cho Young-cheul and Wallenius Wilhelmsen Logistics (WWL) COO John Felitto, as well as officials related to the port and logistics of the Brunswick region, attended the opening ceremony of the center.
The HD Hyundai Integrated Center, built on a plot of land measuring approximately 41,300㎡ (about 12,500 pyeong), has unified into one the existing assembly centers of HD Hyundai Construction Equipment and HD Hyundai Infracore, which used to be operated separately at Savannah, Georgia.
With the construction of this integrated center, both companies will reap a significant improvement effect in terms of cutting their logistics costs and shortening their delivery time through not only tangible and intangible synergy effects based on economies of scale, but also through the excellent access the center provides to Brunswick port, which handles the second highest number of Ro-Ro ships in the US.
Notably, the integrated operation of assembly and production lines can enhance the flexibility and efficiency of all processes at the same time and thereby maximize the sales synergy of the two companies as they strive to expand their market, such as market-tailored product production and on-time supply. HD Hyundai is planning to utilize the integration center as a base for cross-sales of the products of both companies, which is being strategically carried out to raise their market share in the North American market.
According to BlueWeave Consulting, the size of the North American construction equipment market has grown at an annual average rate of 6.0% and is forecast to reach approximately forty billion dollars (approx. \ 53.4 trillion) by 2028.
In his greetings speech at the opening ceremony, CEO Cho Young-cheul said, “The establishment of the integrated customization center will serve as an important milestone for targeting the North American market,” adding, “We will seize this opportunity to take a leap to join the ranks of the top-tier companies in the developed market by maximizing efficiency from the aspects of product quality, delivery, and cost utilizing the synergy of the two companies.”
Meanwhile, on the 3rd (Tues.), the day before the ceremony, CEO Cho Young-cheul took a tour around HD Hyundai Construction Equipment and HD Hyundai Infracore’s Parts Distribution Center (PDC) located in Miami, Florida, and then held a meeting with the top management of NED, a global mega dealer, thereby actively engaging in sales activities along with on-site inspections to strengthen the company’s position in the North American market.
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