HD Hyundai Infracore (HDI) has opened a new business entity – Hyundai Infracore Asia (HDIA) – and parts distribution centre (PDC) in Indonesia to expand growth and increase presence in the Asian market with its new construction equipment brand, Develon.
The opening ceremony for HDIA and the PDC was held in Jakarta, Indonesia in June 2023, which also marked the start of operations in the area. In addition, the company hosted a memorandum of understanding (MOU) ceremony with KB Capital and KB Bukopin on the same day, looking to provide more financial products for purchasing Develon construction equipment. Through this agreement, customers will be able to use instalment finance products with low interest rates.
Among the guests attending the event were KB Bukopin president, Woo-yeol Lee; KB Financial Group chief of small and medium enterprise, Sung-ki Kwon; KB Capital CEO, Soo-nam Hwang and managing director, In-hwan Kim; HDI global CEO and president, Young-cheul Cho; and HDIA CEO, Heewoong Shin; as well as other stakeholders and regional dealers.
According to HDI, this opening ceremony provides an opportunity to widen its sales network and distribution supply in the region, including Indonesia, which has an active market for mid- to large-sized mining equipment, and to expand the company’s business by creating different financial products that meet the needs of local customers through partnerships with related services.
The newly opened PDC is 2,304 sq m in size and located in Marunda, in the northern part of Jakarta. It will serve as a distribution hub which will secure and swiftly supply parts for excavators, wheel loaders and other machines. HDI said that, with the locational advantage of the PDC, it will be able to deliver parts on time within a country that is composed of many islands, and also maximise supply chain efficiency to the neighbouring countries.
HDI is currently operating nine PDCs in its key sales regions, including the US, UK, Germany, China, UAE and Singapore, and is expanding its global coverage for parts distribution.
A representative of HDI said, “Indonesia is a strategically important country as it is abundant with resources and has geological advantages being located near the Indian and Pacific Oceans,” and added, “We will work on providing better services for our dealers and customers by optimising inventory management and parts delivery, and reinforce Develon equipment sales in the Asian market.”
HDI revealed that last year, it achieved a revenue of KRW102 billion (approximately US$78.25 million) in Indonesia, which is the highest since entering the market. The company also plans to attend Mining Indonesia, Asia’s largest international mining equipment exhibition held in Jakarta from 13 to 16 September 2023, to present Develon equipment to customers in the region.