Hyundai Heavy Industries has spun off its construction equipment division - covering both construction equipment and fork lift trucks - from its mother company Hyundai Heavy Industries Co., Ltd.
The new company, officially named Hyundai Construction Equipment Co. Ltd, was estasblished, on 1st April 2017. All activities of HHI’s Construction Equipment division will move to this new company with immediate effect.
The spin-off is based on a restructuring plan which was put into motion last year. Hyundai says the spin-off offers the Construction Equipment division "great possibilities and an improved agility". The newly-established mother company will be able to make independent decisions in the interest of the industries and markets worldwide. It will be managed with the goal of growing its market share.
During 2017, the name of the company in Europe will change to Hyundai Construction Equipment Europe. Driven by that strong commitment to growth, HCEE's European HQ will move to Tessenderlo, Belgium this year, part of a €30m investment project that will help Hyundai increase its success in Europe.
The 81,000 sq m site will house a new headquarters, a new warehouse, a training facility, an event hall and a showroom, which are all currently under construction.
For 2017, the European strategy for the forklift business division is to give priority to the heavy diesel forklift market and the warehousing range, with greater focus on parts sales.
In order to gain success in these areas, Hyundai Construction Equipment Europe is looking to expand its dealer network, widen its product range, and focus on key customers.