In a major move, South Korean conglomerate HD Hyundai has merged its construction firms – HD Hyundai Construction Equipment and HD Hyundai Infracore – to form a new entity, HD Construction Equipment, with a consolidated revenue of KRW8 trillion ($6.15 billion).

A major player in the Middle East region, HD Hyundai is engaged in shipbuilding, heavy equipment, machinery and the petroleum industry.

The decision to merge was made during separate board meetings held by both companies last month. An extraordinary shareholders’ meeting will follow on September 16, along with necessary regulatory reviews, said HD Hyundai.

The merger, effective January 1, 2026, aims to enhance agility in responding to market demands amid intensifying competition and global uncertainties while strengthening future technological capabilities and ensuring cost competitiveness.

Announcing the big move, HD Hyundai said the newly formed company will operate under two brands: Hyundai and Develon. The core business area will be construction equipment, supplemented by growth in engines and aftermarket services.

With balanced growth across all business areas, the company aims to achieve revenue of KRW14.8 trillion ($11 billion) by 2030.

Moreover, HD Construction Equipment will focus on strengthening fundamental growth, diversifying revenue sources and securing future growth engines through a unified decision-making process, it stated.