HD Hyundai Construction Equipment’s Ulsan Plant Reborn as a Smart Factory (Photo courtesy of HD Hyundai Construction Equipment)
SEOUL, May 21(Korea Bizwire) — HD Hyundai Construction Equipment, a core subsidiary of HD Hyundai, has completed the transformation of its Ulsan plant into a next-generation smart factory designed to serve as a global production hub, the company announced Tuesday.
At a ceremony held May 20 at its Ulsan campus, HD Hyundai Chairman Kwon Oh-gap, Senior Vice Chairman Chung Ki-sun, and HD Hyundai Site Solution President Cho Young-chul marked the completion of the multi-year modernization project, which began in 2023 with a ₩200 billion ($150 million) investment.
The project unified two previously separate manufacturing facilities—Plant 1 and Plant 2—into a streamlined, high-efficiency operation spanning 234,710 square meters.
Enhancements included expanded production lines, a newly constructed quality assurance center, and a logistics intake building. The entire production flow has been digitized with real-time tracking systems, enabling seamless integration of production and logistics.
Advanced automation technologies are central to the upgrade. Robotic welders and vision sensors now ensure consistent quality on component lines, while AI-based inspection systems and automated guided vehicles (AGVs) have been introduced to the heavy equipment assembly line.
These improvements are expected to boost labor productivity by 20% and cut product completion time by 35%. The facility’s annual production capacity for excavators and wheel loaders is projected to rise from 9,600 units to 15,000 units, a 56% increase.
HD Hyundai aims to position the revamped Ulsan complex as a “Mother Plant” that will lead its global manufacturing network, with close operational links to its overseas subsidiaries and customization centers in the United States and Europe.
“This newly reborn facility, with its intelligent and safe production system, will become one of the world’s top manufacturing bases in both technology and sustainability,” said Chairman Kwon during the inauguration.
The company also held a delivery ceremony for its first five smart factory-produced machines, which include a 40-ton next-generation excavator unveiled at the 2025 Seoul Mobility Show, as well as 125-ton ultra-large excavators and 35-ton wheel loaders. These units will be shipped to clients in the U.S., Europe, and China.
Ashley Song (ashley@koreabizwire.com)
