Hyundai Heavy Industries (HHI), the world’s largest shipbuilder and a leading construction equipment manufacturer, has announced the entry into an exclusive strategic alliance agreement with CNH Industrial, one of the world’s largest capital goods companies, for the compact excavator business.
Under the 10-year-long-agreement with renewal option, CNH Industrial will market four (4) mini excavator models that will be supplied as complete products by HHI through OEM production, and ten (10) other mini excavator models in the form of complete knock down kits through License production. Thanks to the agreement, HHI expects doubled increase in sales of compact excavators, over the next 10 years. Mini excavators to be rolled out under the agreement will hit the global market from early 2017.
Moreover, the two companies have taken the cooperation a step further by agreeing to jointly develop new models and upgrade existing models.
Mr. S.G. Rhee, COO of HHI’s Construction Equipment Division said, “We have noticed that the global demand for the mini-excavator market has been more stable than the bigger-sized construction equipment, and we also expect that the demand continues to increase for years to come. In view of the trend, we come to a conclusion that the alliance with CNH Industrial which has multiple brands including Case Construction Equipment and New Holland Construction will bring a win-win solution for both companies. Moreover, we believe that the partnership will surely lay a solid foundation for the compact and mini-sized construction machine business of HHI’s Construction Equipment Division.”
Mister J.C. Jung, CEO of HHI Europe adds, “This strategic alliance will result in an expansion of our Hyundai compact excavators’ product range; new models will be developed and existing models will be upgraded with additional options. Naturally, Hyundai dealers in Europe will benefit from this to grow their business and provide even better solutions to their customers.”