SEOUL, March 12 (Korea Bizwire) — South Korean excavator manufacturers are enjoying brisk sales in China and emerging markets this year on China’s pump-priming policy to cope with the coronavirus pandemic and increased prices of raw materials.
Doosan Infracore Co. sold 1,754 units in China in February, rising more than three times from a year ago, while its smaller rival Hyundai Construction Equipment Co. sold 709 units, up more than five times over the cited period, according to a report provided by Lee Dong-heon and Lee Tae-hwan, analysts at Daeshin Securities Co.
Doosan Infracore held a 7.1 percent share of the Chinese construction machinery market in February, increasing 0.1 percentage point from a year ago.
Hyundai Construction Equipment took up 2.9 percent of the country’s construction equipment market share, up 1 percentage point from a year earlier.
A total of 24,562 excavators were sold in China in the month, the biggest sales ever since 20,358 units in 2011.
“Strong sales of construction equipment are expected to continue this year on the back of the stimulus package in China to overcome the coronavirus pandemic and a rise in raw material prices in emerging markets,” the analysts said in their report.
In early February, top player Doosan Infracore said it sold 221 units of construction machinery in emerging markets, such as Asia, the Middle East, Africa and Central and South America, in 2021.
Doosan Infracore sold 108 units of excavators and wheel loaders in Hong Kong, Thailand and Vietnam this year.
A total of 27 units of construction equipment were sold in Oman, while 70 units were provided to companies in Morocco and Egypt. In Colombia, Doosan Infracore signed a deal to provide 16 units of construction equipment.
Hyundai Construction Equipment also said its sales in emerging markets, such as the Middle East, Southeast Asia and Central and South America, were on a rise in prices of raw materials, including crude and iron ore.
In the December-February period, the country’s No. 2 construction equipment maker sold 2,698 units of construction equipment in the markets, more than doubling from 1,181 units a year ago.
Hyundai Construction Equipment sold 56 excavators in Qatar and 40 units of construction equipment, including excavators and backhoe loaders, in Colombia during the period.
Doosan Infracore is slated to be incorporated into Hyundai Construction Equipment.
In December, Doosan Heavy Industries & Construction Co., the parent of Doosan Infracore, signed an initial deal with Hyundai Heavy Industries Holdings Co. (HHIH), the parent of Hyundai Construction Equipment, to sell its stake in Doosan Infracore as part of efforts to tide over its cash shortages.
“HHIH aims to complete the deal within the third quarter of this year,” a HHIH spokesman said.
Shares of Doosan Infracore closed at 7,980 won (US$7.02), up 3.91 percent from the previous session on the Seoul bourse, while shares of Hyundai Construction Equipment were up 15.63 percent to close at 46,250 won.