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HD Hyundai Construction Equipment has inaugurated its smart factory at the Ulsan Campus in Dong-gu, South Korea.
This facility aims to serve as a global production hub, marking a significant milestone in the company's modernisation efforts, reported BusinessKorea.
The smart factory integrates advanced technologies to optimise production and logistics processes.
The plant's inauguration ceremony was attended by approximately 400 individuals, including HD Hyundai chair Kwon Oh-gap, vice-chair Chung Ki-sun, XiteSolution president Cho Young-cheul, president Choi Cheol-gon, and labour union branch chair Lim Young-mo, as well as other key executives, employees, and partners.
Since 2023, HD Hyundai Construction Equipment has invested Won200bn ($150m) in a modernisation project to upgrade facilities and expand production capacity at the Ulsan factory.
The project integrates Factory 1 and Factory 2 within the existing 234,710m² site, boosting equipment and operating systems to transform the facility.
The smart factory features an integrated system that unifies production and logistics lines, introducing a real-time product tracking system.
According to the company, productivity and quality consistency are improved with welding robots and vision sensors on the fabrication parts production line. Automated guided vehicles and AI-based quality inspection systems have also increased automation on the assembly line.
HD Hyundai Construction Equipment anticipates a 20% improvement in labour productivity and a 35% reduction in product completion time. The production capacity for excavators and wheel loaders is expected to rise by 56%, from 9,600 to 15,000 units annually.
The company expects the campus to link with major overseas production subsidiaries and customisation centres in the US and Europe.
Kwon stated: “The new factory, reborn with a smart and safe production system, will establish itself as the world’s best production base equipped with technology and environment.”
Choi highlighted the site's enhanced quality competitiveness, saying: “We will continuously introduce the best products that can lead the construction equipment industry, including next-generation new models.”
During the inauguration, HD Hyundai Construction Equipment delivered five units from the smart factory, including a 40-ton (t) class excavator, a 125t ultra-large excavator, and a 35t large wheel loader, to dealers in South Korea, the US, Europe, China, and Indonesia.
Last month, the company reported sales of Won906.8bn and an operating profit of Won41.7bn in the first quarter of 2025, a year-over-year decline of 7.4% and 22.3%, respectively.
