236 Hyundai Heavy Industries and 1595 CNH Industrial are establishing a strategic alliance agreement for the mini excavator business. The two firms have agreed a 10-year-long-agreement with renewal option. This will see CNH Industrial marketing four mini excavator models that will be supplied as complete products by HHI through OEM production. CNH will also receive 10 other mini excavator models in the form of complete knock down kits through license production. With this agreement, HHI expects to double sales of compact excavators, over the next 10 years. Mini excavators to be rolled out under the agreement will hit the global market from early 2017.
Moreover, the two companies have taken the cooperation a step further by agreeing to jointly develop new models and upgrade existing models.
SG Rhee, COO of HHI’s Construction Equipment Division said, “We have noticed that the global demand for the mini-excavator market has been more stable than the bigger-sized construction equipment, and we also expect that the demand continues to increase for years to come. In view of the trend, we come to a conclusion that the alliance with CNH Industrial which has multiple brands including 176 Case Construction Equipment and 5895 New Holland Construction will bring a win-win solution for both companies. Moreover, we believe that the partnership will surely lay a solid foundation for the compact and mini-sized construction machine business of HHI’s Construction Equipment Division.”
JC Jung, CEO of HHI Europe adds, “This strategic alliance will result in an expansion of our Hyundai compact excavators’ product range; new models will be developed and existing models will be upgraded with additional options. Naturally, Hyundai dealers in Europe will benefit from this to grow their business and provide even better solutions to their customers.”
