Hyundai Heavy Industries (HHI) and CNH Industrial have signed a strategic alliance relating to compact excavators.
Under the 10-year agreement, which can be renewed, CNH Industrial will market four mini excavator models – supplied as complete products by HHI through OEM production – and 10 other mini excavator models in the form of complete knock down kits produced under licence.
HHI said that because of the agreement it expects to double sales of the machines in the next decade. 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, chief operating officer 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, will bring a win-win solution for both companies.”