Develon, Hyundai to Merge into One Company: “HD Construction Equipment”

The parent of Hyundai and Develon is undergoing a merger of its construction equipment subsidiaries and brands to form a new company tentatively called “HD Construction Equipment” – dropping “Hyundai” from its name and adding the Develon brand.

The new company will “launch as a unified entity operating two distinct brands – Hyundai and Develon,” the company said in a July 1 news release.

HD Construction Equipment will be the result of a merger of HD Hyundai Construction Equipment, which carries the Hyundai brand, and HD Hyundai Infracore, which carries the Develon brand. The merger is set for January 1, pending shareholder and regulatory approval.

“The merger aims to enhance agility in responding to market demands amid intensifying competition and global uncertainties while strengthening future technological capabilities and ensuring cost competitiveness,” the news release said.

Attendees at recent international trade shows, including Bauma in Germany, have been seeing combined booths of Develon and Hyundai, with both revealing their next-generation excavators.

The new company’s focus will be construction equipment. It will seek to diversify its revenue stream by its engine production and by aftermarket parts and maintenance services. The release says HDCE will also expand its compact equipment business, with the goal of producing a full lineup of products “ranging from compact to ultra-large construction machinery.” And the combined companies’ research and development will focus on growth in “electrified and smart construction equipment.”

The merger will occur as a share swap, in which HD Hyundai Infracore shareholders will receive a .162 share in HD Hyundai Construction Equipment, the surviving entity, for each of their common shares. A shareholders meeting is set for September 16.

The journey to the new company began in 2022 when Hyundai Heavy Industries bought Doosan Infracore's construction division. Both companies are based in South Korea. The deal included all Doosan construction equipment and engines – minus Bobcat, which remains with Doosan.

The Doosan construction equipment brand name was changed to Develon, and its company name became HD Hyundai Infracore.

The Hyundai brand is under HD Hyundai Construction Equipment, which will be the surviving entity and whose name is tentatively set to be changed to HD Construction Equipment with the merger.

Both brands and companies fall under HD Hyundai XiteSolution, a subsidiary of conglomerate HD Hyundai.

HD Hyundai hopes the merger will further move it toward its goal of becoming a top construction equipment manufacturer by 2030, with a revenue target of $11 billion.

HD Hyundai Infracore (Develon) ranks 21 of global construction equipment manufacturers with sales of $3 billion, and HD Hyundai Construction Equipment (Hyundai) ranks 25 at $2.5 billion in sales, according to the 2025 Yellow Table by KHL.

“This merger will drive sustainable growth for the Construction Equipment Division of HD Hyundai, helping us strengthen our position in the global market and serving as a significant milestone in advancing Korea’s construction equipment industry,” said Cho Young-cheul, president and CEO of HD Hyundai XiteSolution.

Here's a chart of the corporation's current organizational structure:

HD Hyundai