Hyundai Heavy Industries and CNH Industrial ink exclusive strategic alliance agreement for mini excavator business

Under the 10-year-long-agreement with renewal option, CNH Industrial will market four mini excavator models that will be supplied as complete products by HHI through OEM production, and ten 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.”

Mr. 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.”

 

Source: Hyundai Heavy Industries

 

CNH Industrial is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions.

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Since 1985, Hyundai Heavy Industries (HHI) has delivered more than 500,000 quality construction equipment and industrial vehicles to customers around the world. HHI’s state-of-the-art manufacturing facilities in Korea, China, India, and Brazil produce earth-moving machines that are sold and serviced through a global network of over 540 dealers in 140 countries worldwide. Major products are excavators, wheel loaders, skid loaders, backhoe loaders, forklifts and warehouse equipment.