Major OEM opens new business entity to expand growth in Asia

Develon DX225 Concept X2 excavator (Photo: Develon)

HD Hyundai Infracore has opened a new business entity (Hyundai Infracore Asia) and Parts Distribution Center (PDC) in Indonesia as it looks to expand growth in the Asian market with its new construction equipment brand, Develon.

The company says that the move provides an opportunity for HDI to widen its sales network and distribution supply in the region, including Indonesia, which has an active market for mid-to-large sized mining equipment, and to expand the company’s business by creating different financial products that meet the needs of local customers.

The newly opened PDC is 2304m2 in size and located in Jakarta. It will act as a distribution hub which will secure and swiftly supply parts for excavators, wheeled loaders and other machines. The company says that, with the locational advantage of the PDC, it will be able to deliver parts on time within a country that is composed of many islands, and also maximize supply chain efficiency to the neighbouring countries.

A representative of HDI said, “Indonesia is a strategically important country as it is abundant with resources and has geological advantages being located near the Indian and Pacific Oceans. We will work on providing better services for our dealers and customers by optimizing inventory management and parts delivery, and reinforce Develon equipment sales in the Asian market.”

Last year, HDI achieved a revenue of KRW 102 billion (US$78 million) in Indonesia, which is the highest since entering the Indonesian market.

HDI is currently operating nine PDCs in its key sales regions including the US, UK, Germany, China, United Arab Emirates and Singapore, and is expanding its global coverage for parts distribution.

Read an exclusive article on why Develon and Hyundai CE believe compact equipment can make them one of the world’s biggest OEMs.