Hyundai Construction Equipment (HCE) has secured a $20 million contract to export 36 large excavators to coal and iron ore mine developers in Russia.
The company, spun off from Hyundai Heavy Industries in March, said Thursday that the deal will enable it to expand its presence in Russia and neighboring countries rich with natural resources. HCE is the No. 1 heavy machinery company in Russia, accounting for 30 percent of its excavator market in the first quarter of this year.
“Since 2012, we have been selling about 30 excavators annually. They are small in size and used mostly in construction projects,” a company official said. “But the ones being shipped to Russia this time weigh 80 tons or 120 tons and will be used to develop mineral mines across the country. We will focus more on marketing large-size, premium excavators to Russia and other resource-rich nations.”
He said Hyundai won the Russian contract by beating rivals Caterpillar, Komatsu and other companies, stressing that HCE is the only Korean manufacturer capable of producing 120-ton excavators.
“Large-size, premium excavators require a high level of technological knowhow and expertise. The global market has largely been dominated by Caterpillar and other foreign makers. But things will change from now on,” the official said. “We will develop and introduce excavators and other heavy machinery tailored to each market and bolster our marketing activities in Iran, Mongolia, Kazakhstan, South Africa and other countries with abundant natural resources.”
HCE has established sales subsidiaries in the United States, Europe, China and India, as well as operating 540 dealerships in 140 countries. Besides excavators, it produces forklifts and other construction and industrial vehicles.
By Lee Hyo-sik
