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HCE wins orders worth of 250 billion won in China

Posted March. 30, 2021 07:31,   

Updated March. 30, 2021 07:31


Hyundai Construction Equipment (HCE) has won its largest-ever orders in China. HCE said on Monday that it has achieved orders of supplying 2,200 units of construction equipment to Chinese customers, the biggest ones since the company’s entry into the Chinese market. The orders, which are worth 250 billion won, include 5.5- to 85-ton excavators and wheel loaders and account for approximately 30 percent of the company’s sales last year, considering that it received orders for 7,800 units of construction equipment in China. The company plans to complete the delivery of the equipment by May.

The Chinese government is recently making great investments in social overhead capital (SOC) in order to cope with the economic downturn caused by the COVID-19 pandemic. HCE introduced 13 new products, including large excavators, amphibious excavators, pile hammers, and nippers to the Chinese market early this month, thinking that the Chinese construction equipment market has entered a boom cycle.

An increase in demand for construction equipment is expected in emerging markets, including China, as the prices of raw materials are rapidly rising, with the price of iron ore approaching $170 per ton. HCE expects that this year’s demand for construction equipment in China will rise 8 percent year-on-year to 315,000 units.

Hyung-Seok Seo skytree08@donga.com