SEOUL, Nov. 13 (Korea Bizwire) — Doosan Infracore Co., South Korea’s top construction equipment maker, continued to expand its presence in China’s excavator market, as the world’s No. 2 economy increased spending on infrastructure, industry sources said Monday.
According to observers, Doosan Infracore sold 769 excavators in China last month, almost doubling from a year earlier.
In the first 10 months of the year, Doosan Infracore sold 8,650 excavators, more than twice that of the same period in 2016, the sources said. Last year, the company sold 4,649 excavators. The 10-month tally is also higher than its previous sales of 8,218 units in 2013, 6,905 in 2014 and 3,526 in 2015.
In October, sales of excavators in China jumped 96 percent on-year to reach 9,661 units, with accumulated sales in the first 10 months tallied at 104,952 units, which has already exceeded last year’s total of 62,913 units.
China’s excavator market has been growing sharply thanks to the country’s ongoing railroad, highway and airport projects in lower-tier cities, as well as continued urbanization. In particular, China’s massive “One Belt, One Road” infrastructure drive aimed at increasing its economic clout in Asia is stimulating demand for excavators.
China accounts for roughly a third of the world’s construction equipment market.
Aided by increased sales, Doosan Infracore’s third-quarter earnings reached 77.2 billion won (US$69.3 million), more than double that of a year earlier, which was, in turn, a big improvement on a loss of 35.7 billion won the year before that.
Operating income was tallied at 144 billion won, up 36.1 percent from a year earlier, while sales surged 21.7 percent on-year to reach 1.59 trillion won.