New Merger Has Hyundai, Develon Meeting Under One Umbrella
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- What does "Develon" stand for?
- IUEO Local 150 pros evaluate Develon DD130 dozer.
- Independent operators Field Test Hyundai HX220L excavator.
In this article, you will learn:
- How the merger affects Hyundai and Develon.
- A recap of the ownership strategy.
- What equipment managers can expect.
A little like a movie franchise that has had one too many sequels, there are changes once again with the South Korean parents of Hyundai Construction Equipment and Develon (formerly Doosan).
This time, the brands will be together starting in 2026 under what’s tentatively being called HD Construction Equipment; however, they will be keeping their individual identities and dealer networks in North America.
Fleet managers shouldn’t notice much of a change, according to statements from both brands.
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The merger, pending shareholder approval and regulatory review, will formally combine HD Hyundai Infracore (current Develon parent) and HD Hyundai Construction Equipment (Hyundai Construction Equipment parent).
This follows the 2023 establishment of Hyundai Genuine, which was overseeing the two brands with a stated purpose of “providing support to both businesses, while maximizing the available synergies between the two.”
At that time, Hyundai Genuine held that: HD Hyundai Construction Equipment and HD Hyundai Infracore would compete within the global equipment market; technological synergies would start with joint development of integrated excavator and wheeled loader platforms (they also shared an ADT model); the brands would share hydrogen engine development; and R&D would be combined to push technological development.
In 2023, then CEO of HD Infracore and Hyundai Genuine, Young-cheul Cho, told Construction Equipment that, "So far we have decided to operate and keep the two brands separate. Hyundai and Develon have two businesses always, branding, different names, and different channels. We are going to keep the brands, and compact and heavy machinery."
This [2023] is not the right time, Cho added, to decide if one brand will eventually become a premium brand and the other a value brand.
Separation is indeed still the case in this newest iteration and there will continue to be some joint development going forward, particularly in technologies.
“Stability and continuity” for Develon
“While this merger creates a more powerful global entity, we are committed to ensuring stability and continuity for our dealers and customers in North America,” said Woohyun (W.H) Kim, newly appointed CEO of Develon North America. “Our dealers will continue to work with the same staff they do today, and the Develon and Hyundai brands will continue to be strong, independent forces in the market.”
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Kim, who was appointed July 3, most recently served as director of sales operation and programs for Develon. Additionally, he was responsible for opening the North American Customer Utilization Plant near Savannah, Georgia. Kim’s career with Doosan, and then HD Hyundai Infracore, spans 25 years. His roles included have sales and leadership positions in Seoul, Dubai, and Atlanta.
Develon North America is headquartered in Suwanee, Georgia, and markets crawler and wheeled excavators, material handlers, log loaders, dozers, wheel loaders, ADTs, CTLs, and attachments.
Develon currently has more than 200 dealer locations in North America.
The Hyundai side
“Hyundai dealers and customers can be confident in the continuing strength of the Hyundai brand,” said Stan Park, CEO, HD Hyundai Construction Equipment North America. “This merger gives the Hyundai and Develon brands the full backing of a powerful global company that expects to exceed $11 billion in sales by 2030.”
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According to Park, Hyundai customers will benefit from competitive pricing afforded through the greater purchasing power of the newly merged company, along with more and faster product advancements driven through shared R&D resources, and a broadening lineup of products. The new entity is also planning to expand aftermarket services, engine development, and sales.
HD Hyundai Construction Equipment North America offers a line of crawler excavators ranging from compact models to heavy excavators; wheeled excavators; wheel loaders; ADTs, skid steers and CTLs, dozers, and hydraulic breakers. It has more than 100 dealerships operating from more than 200 locations across the United States and Canada.
Both brands have been adding machine categories to their product lines in the last decade.
About the Author
Frank Raczon
Raczon’s writing career spans nearly 25 years, including magazine publishing and public relations work with some of the industry’s major equipment manufacturers. He has won numerous awards in his career, including nods from the Construction Writers Association, the Association of Equipment Manufacturers, and BtoB magazine. He is responsible for the magazine's Buying Files.